South Korea’s SK Group To Buy U.S. Energy Storage Developer
South Korea’s SK Group To Buy U.S. Energy Storage Developer
(Bloomberg) -- South Korean conglomerate SK Group said one of its affiliates agreed to purchase energy storage developer Key Capture Energy LLC as part of its push into U.S. clean energy markets.
The industrial giant said it plans to invest $1 billion in Key Capture Energy to develop battery systems in the U.S. Northeast, Midwest and Texas. The figure includes the purchase price, which wasn’t disclosed.
The American market for large-scale battery systems is expected to boom as utilities and grid operators buy more to back up deployments of carbon-free wind and solar power.
“All across the U.S., the decreasing price in batteries is making more markets more competitive very quickly,” Jeff Bishop, co-founder and chief executive officer of Albany, New York-based Key Capture Energy, said in an interview.
SK Group’s move comes after a $1.5 billion investment in January in American fuel-cell maker Plug Power Inc., one of the biggest hydrogen deals ever. The South Korean company also put $75 million into a joint venture with solar and battery provider Sunrun Inc. to develop all-electric homes last year.
Key Capture Energy has 254 megawatts of energy projects in construction and operations and a development pipeline of more than 3,000 megawatts of projects across the U.S., according to a statement.
Onpeak Capital served as the financial adviser to Key Capture Energy, and Sidley Austin LLP served as legal counsel. SK Group’s purchase is expected to close in the fourth quarter of 2021 and is subject to customary terms and conditions that were not disclosed.
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