Equinor has signed an agreement to buy energy storage developer East Point Energy LLC, based in the US.
Headquartered in Charlottesville, Virginia, the company has a 4.1GW pipeline of early to mid-stage battery storage projects focused on the US East Coast.
Equinor believes battery storage will play an “important role” in the energy transition as countries across the globe increase their share of intermittent renewable power.
It suggests the acquisition will provide the company with “attractive investment opportunities” and the projects will contribute to lifting the return on its renewable portfolio whilst lowering its portfolio risk.
In addition, Equinor sees a “strong opportunity to create a profitable business” by deploying battery storage assets in selected power markets.
It follows the company’s 2021 investment in Noriker Power Limited, a battery storage developer in the UK.
Olav Kolbeinstveit, Senior Vice President for power and markets within Renewables at Equinor 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.”
The deal is expected to be completed in the third quarter of 2022.