Oil and gas major TotalEnergies has acquired Kyon Energy, one of the most active battery energy storage system (BESS) project developers in Germany.
Paris-headquartered TotalEnergies has agreed to pay an upfront €90 million (US$98 million) to acquire Kyon from its three founders, plus further payments linked to the achievement of development targets.
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Those development targets will be for the company’s forward pipeline of projects alongside 120MW of operational BESS projects it developed and sold to long-term owners. It has brought a further 350MW to the construction stage while 300MW is ready-to-build, and its ‘advanced stage’ pipeline is 2GW.
A notable partnership that Energy-Storage.news has reported on is with investor Obton, to which Kyon sold nearly 200MW of projects last year. Kyon is also developing a 137.5MW/275MWh BESS in Lower Saxony, for which it was granted approval in November, a month after getting the go-ahead for a 58MW/116MWh system in Saxony-Anhalt.
TotalEnergies said the acquisition fits into an integrated energy strategy, after offshore wind wins in Germany and the acquisition of aggregator Quadra Energy.
TotalEnergies also owns France-headquartered BESS technology provider Saft, which serves the transport, industry and defence sectors and is particularly known for deploying projects in remote or extreme weather locations.
After a quiet few years prior, the grid-scale energy storage market in Germany has picked up since 2021 as high prices in ancillary service markets, energy trading opportunities and falls in the cost of lithium-ion BESS products combined to create a strong business case.
Progress has also been made in the country’s regulatory environment for energy storage, with regulators extending a grid free exemption for large-scale BESS to 2029 and then lawmakers last week publishing its first Electricity Storage Strategy.
Kyon Energy’s managing director Florian Antwerpen shared his views for a recent Year in Review article along with fellow European developer/operators Aquila Clean Energy EMEA and Baywa r.e.
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