Norwegian oil and gas major Equinor buys US battery storage developer East Point Energy

LinkedIn
Twitter
Reddit
Facebook
Email

Norwegian state-owned energy company Equinor will acquire East Point Energy, a US-based developer of grid-scale battery energy storage projects.

With the Norwegian state as its 67% majority shareholder, Equinor – formerly known as Statoil – is best known for its oil and gas business but has latterly become a major owner and operator of renewable energy assets, particularly offshore wind.

Its acquisition target meanwhile provides an early-stage platform for the energy major to enter the booming US battery storage market and leverage its renewables business.

For instance, Equinor has partnered with fellow fossil fuels major bp to deploy 3.3GW of wind energy generation off the coast of New York and in the process transform South Brooklyn Marine Terminal into a hub for bringing offshore wind power to land.

East Point Energy will become a wholly owned subsidiary of Equinor.

The deal marks the Norwegian group’s second significant investment into battery storage, after it invested in and became 45% owner of UK company Noriker Power, another early-stage developer, late last year.

Virginia-headquartered East Point Energy has only been around since 2018 but has developed and flipped three large-scale battery storage projects in the US Commonwealth of states that it has publicly announced its involvement in.

Its first was a 2MW/8MWh battery energy storage system (BESS) project sold to non-profit electric supplier Rappahanock Electric Cooperative (REC) in Virginia’s Spotsylvania County, which Energy-Storage.news reported in August 2020.

The second was Dry Bridge, a 20MW/80MWh project sold in September last year to utility Dominion Energy through an RfP. East Point Clean Energy’s proposal was the only standalone battery project chosen by the utility in that procurement. Dominion Energy is mandated by Virginia clean energy policies to deploy 2,700MW of energy storage in its service area by 2035.

Energy-Storage.news reported in March that Yadkins, a 100MW/400MWh BESS in Chesapeake, Virginia, had been sold by the developer to Aypa Power, a battery storage-focused investment company in the portfolio of investment manager Blackstone.

East Point claims its current pipeline of opportunities is at 4.1GWh of early to mid-stage projects on the US East Coast, while its new owner-to-be said it will be able to optimise the market participation of battery assets using the energy trading platform it owns, Danske Commodities.

Equinor meanwhile also wants to invest into the developer to enable it to own and operate energy storage projects as well as develop and sell them on as it currently does.

East Point Energy’s leadership team is staying on at its offices in Charlottesville. The deal is expected to be completed in the third quarter of this year.

Read Next

February 8, 2023
Portugal-based utility EDP has received clearance to deploy a 1MWh vanadium redox flow battery (VRFB) system as part of a hybrid energy storage project at the site of a retiring gas plant in Asturias, Spain.
February 7, 2023
US Senator Joe Manchin and fellow bipartisan colleagues have urged the Biden Administration to invest more in non-lithium energy storage technologies, while DOE Loan Programs Office head Jigar Shah expects companies developing the latter to broadly secure 1GWh orders this year.
February 7, 2023
B2U Storage Solutions has further expanded its in-house second life energy storage project in California to 25MWh, an alternative approach to peers which president Freeman Hall explained to Energy-Storage.news.
February 7, 2023
Singapore-based VFlowTech has raised a US$10 million Series A to set up a manufacturing facility and scale up production of its 250kWh vanadium flow battery product.
February 6, 2023
Residential solar and battery installer Sunrun has partnered with California utility PG&E to create a new virtual power plant (VPP) combining up to 30MW of new and existing home PV and battery systems for grid reliability.

Most Popular

Email Newsletter