French electric utility ENGIE has agreed to fully acquire Broad Reach Power, a Houston-based company specialised in battery storage, from EnCap Energy Transition Fund and its partners, for a total equity value of over $1bn.
EnCap’s partners in Broad Reach Power include Yorktown Partners, Mercuria Energy and Apollo Infrastructure Funds (Apollo Funds).
Through the acquisition, ENGIE will obtain Broad Reach Power’s projects located in Texas, California and the central states of the US.
It includes 350MW of operating assets, 1.7GW of advanced-stage projects and a significant pipeline of early-stage projects, along with 880MW of under-construction assets, to be commissioned before the end of 2024.
The transaction is expected to be completed by Q4 2023, subject to receipt of certain approvals from anti-trust and energy regulatory authorities.
ENGIE CEO Catherine MacGregor said: “This acquisition is fully in line with ENGIE’s strategy: it will contribute to the development of a low-carbon, affordable and resilient energy system where flexible assets will play a critical role alongside renewables.”
Apollo Infrastructure Partner Corinne Still said: “At Apollo, we’re committed to being leading investors in the energy transition, and we’re proud to have been a significant, value-add owner of Broad Reach Power during years of incredible growth for the business.
“Together with EnCap and the Broad Reach Power management team, we’ve built what we believe is the leading and most innovative battery storage IPP in North America. We wish the Broad Reach team all the best in their next phase of growth with Engie.”
Broad Reach was established in 2019, with support from EnCap Energy Transition.
It has become a top developer and operator of renewable energy and energy storage power projects in Texas, California and other markets in the US.
In December 2021, Apollo Funds purchased a 50% stake in the company and joined the Board.
ENGIE said that the acquisition of Broad Reach will support its target of having 10GW of battery capacity worldwide, by 2030.
The transaction will also strengthen its position in the US energy transition market, where it already owns renewable assets, battery storage and an energy management platform.
Broad Reach Power CEO Stacey Peterson said: “I want to thank the BRP team for their amazing work, and also thank EnCap, Apollo Funds, Yorktown and Mercuria for their unwavering support of our business over the past four years. This a great transaction and we are excited about its continued growth.”
Broad Reach founder and chief operating officer Doug Moorehead said: “It has been a terrific honour and pleasure to be part of the rapid growth of the U.S. energy storage sector from the very beginning and see our company grow into one of the top developers.
“We are extremely appreciative of the work and expertise of our entire staff and the support and backing of the highly talented team at EnCap Energy Transition throughout the process. We look forward to teaming with ENGIE to carry on the work.”
