(Credit: Engie)Engie has acquired Broad Reach Power from EnCap Investments' Energy Transition Fund I for a total equity value of over $1 billion. Its co-investment partners include Yorktown Partners, Mercuria Energy, and Apollo Infrastructure Funds.
Broad Reach is a top developer and operator of renewable energy and energy storage power projects, so the acquisition will help advance Engie’s goal of reaching 10 gigawatts of battery capacity by 2030. The sale includes 350 MW of currently operating assets along with 880 megawatts of assets that are under construction, mainly in Texas and California.
Also featured is a 1.7 GW pipeline of battery storage projects that are at an advanced development stage and an additional pipeline of early-stage projects. The first storage asset is expected to be in operation by 2023.
Houston-based Broad Reach’s 1.8 GW of solar and wind power projects along with the company's 4 GWh of battery storage located in the western U.S. is not included in the purchase.
"It has been a terrific honor 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,” said Doug Moorehead, Broad Reach founder and chief operating officer. “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."
In June, France's Engie presented its 2050 energy transition scenario for Europe, guided by three criteria: alignment with the European Climate ambition, optimizing costs for the wider community, and guaranteeing the safety of the energy system. The company also emphasized the need for significant acceleration in renewable energy and energy storage growth. The new purchase brings it another step closer to this objective.
This purchase also follows Engie Impact’s launch of its new platform, Mobility Support, which assists in the planning, procurement, and implementation of EV charging infrastructure projects. The sustainability consulting branch of the company has helped businesses and organizations save nearly $1 billion through reduced energy usage.
Completion of the Broad Reach acquisition is expected by the end of 2023, pending approval from anti-trust and energy regulation authorities.
