East Point Energy, a US-based producer of battery storage, has entered into an agreement to be acquired by Equinor.
According to the corporation, Equinor will be able to increase the variety of energy options it provides in the US by purchasing a 100 percent stake in East Point Energy.
The transaction is anticipated to be finished in the third quarter of 2022.
With an emphasis on the US East Coast, Charlottesville, Virginia-based East Point Energy has a 4.1 GW pipeline of early to mid-stage battery storage projects.
Olav Kolbeinstveit, senior vice president for power and markets within Equinor’s renewables business, said “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.”
By utilising battery storage assets in specific power markets, Equinor “sees a strong opportunity” to build a successful business.
Based on the assets’ adaptability and Equinor’s sophisticated trading capabilities through its fully owned energy trading company, Danske Commodities, this conclusion is made.
Equinor’s portfolio of offshore wind, upstream oil and gas, and expanding potential in the hydrogen and CCS space will be strengthened by the addition of flexible battery storage.
East Point Energy has a capable team that has grown and divested a number of battery storage projects in the US energy industry that are ready to be built.
The team at East Point Energy will continue to grow the company and add skills to eventually own and run energy storage facilities as a subsidiary of Equinor.
Andrew Foukal, CEO of East Point Energy said “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.”