Equinor has signed an agreement to acquire US-based battery storage developer East Point Energy.
The acquisition of a 100% shareholding in East Point Energy will enable Equinor to broaden its energy offerings in the US, the company said.
The deal is expected to complete in the third quarter of 2022.
East Point Energy, headquartered in Charlottesville, Virginia, has a 4.1GW pipeline of early to mid-stage battery storage projects focused on the US East Coast.
“The acquisition of East Point Energy represents Equinor’s entry into the US power market through flexible assets.
“It will enable Equinor to further unlock the potential we see in the renewables space in the US, capturing value from volatility in the power markets and providing reliable services to the grid,” said Olav Kolbeinstveit, senior vice president for power and markets within Equinor’s renewables business.
Equinor “sees a strong opportunity” to create a profitable business by deploying battery storage assets in selected power markets.
This is based on the flexible nature of the assets and Equinor’s advanced trading capabilities through its wholly owned energy trading house Danske Commodities.
Adding flexible battery storage will complement Equinor’s portfolio of offshore wind, upstream oil and gas and growing opportunities in the hydrogen and CCS space.
East Point Energy has a competent team which has matured and divested a number of ready-to-build battery storage projects in the US energy market.
East Point Energy will become a subsidiary of Equinor with its team continuing to develop the business, as well as adding capabilities to own and operate energy storage projects in the near future.
“We look forward to working together with East Point Energy to build a portfolio of battery storage assets in the US. This strengthens and diversifies our existing renewable energy offerings in the US, which includes substantial offshore wind projects Empire Wind and Beacon Wind,” said Siri Espedal Kindem, senior vice president for Equinor Renewables US.
“On behalf of the East Point Energy team, I am excited to welcome Equinor as the new owner. We look forward to a long and successful relationship developing, owning and operating energy storage projects in the US,” says Andrew Foukal, CEO of East Point Energy.