SK E&S to invest up to $400 million in REV Renewables
LS Power, a leading development, investment and operating company focused on the North American power and energy infrastructure sector, today announced that SK E&S Co., Ltd. (“SK E&S”), a global leader in clean energy solutions headquartered in Seoul, South Korea, will become an equity investor in REV Renewables, LLC (“REV”), an LS Power company focused on the development, acquisition and operation of renewables and energy storage.
The transaction will include a $300 million to $400 million investment from SK E&S that will help accelerate the expansion of REV’s portfolio of renewable power and energy storage projects.
SK E&S in return will receive an ownership stake in the renewables and energy storage platform and will hold one seat on REV’s Board of Directors. The investment is subject to regulatory approvals and other closing conditions.
“The energy transition is underway and we believe renewables and storage represent the largest opportunities and challenges. We formed REV to tackle these challenges and we are extremely pleased that a company with the vision, sophistication and global reach of SK E&S is investing alongside us in REV Renewables,” said Paul Segal, CEO of LS Power and Chairman of REV’s Board of Directors. “SK E&S’ leadership in advancing the energy transition globally across a range of clean energy technologies is well known and we are excited to be able to partner with them today.”
“SK E&S’ investment will provide additional capacity to achieve REV Renewables’ mission to decarbonize electricity supply in a manner that is affordable and reliable and accelerates the company’s growth trajectory,” said Ed Sondey, CEO of REV.
“We are excited to invest in REV Renewables. SK E&S is very committed to realizing a net-zero world and has been leading this transition globally with our innovative energy solution business models and technologies. We strongly believe that REV will spearhead the transformation of the energy landscape in the United States, creating significant value, not only for the business, but also for society as a whole,” said Kyungyeol Song, Executive Vice President and Head of EQ-TF at SK E&S.
SK E&S has made distinctive investments in the United States across the energy solution value chain in recent years which include: the 2019 acquisition of the largest behind-the-meter energy storage portfolio in California; a 2020 investment in Sunrun and the creation of a joint venture to accelerate the adoption of renewables, the electrification of homes, and the transition to a connected and distributed energy system; 2021 investments in hydrogen technology company Plug Power and battery storage developer, owner and operator Key Capture Energy.
SK E&S’ holistic portfolio aims to provide solutions to resolve complex issues that evolve from the energy transition and also create potential technological breakthroughs to provide total solutions for the green business globally, which SK E&S refers to as “energy solution.”
LS Power and SK E&S Strategic Collaboration
Additionally, LS Power and SK E&S agreed to form a joint strategic task force to identify and evaluate potential collaboration opportunities across the full range of clean energy technologies and services. John King, Executive Vice President at LS Power and a member of REV’s Board of Directors, will serve as LS Power’s lead member of the task force.
“We are excited to collaborate with SK E&S to jointly identify additional business opportunities that will accelerate the clean energy transition. Their global track record of success in developing solutions across the clean energy spectrum makes SK E&S an outstanding partner for LS Power as we expand efforts to decarbonize the economy,” King said.
“Combining LS Power’s strong leadership in the US power industry with SK E&S’ proven track record in global energy solution businesses, we are confident in our collective ability to identify new actionable clean energy business opportunities through this strategic task force initiative. The stellar management team of LS Power gave us the confidence to partner with them in these collaborative efforts,” said Kidae Park, Project Leader of EQ-TF at SK E&S.
Source: Company Press Release