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France's Engie SA has agreed to buy Broad Reach Power LLC, a privately funded U.S. battery company, as part of a strategy to expand power generation and renewable energy.
Purchase from Apollo Global Management Inc. and EnCap Investments will strengthen Engie's presence in states such as Texas and California, which are working to improve energy security after suffering power outages in recent years.
The acquisition gives Engie 350 MW of active assets, as well as 880 MW of projects under construction and another 1.7 GW of advanced projects. The company already has renewable energy and energy storage operations in the US.
Energy companies are increasingly increasing battery capacity to store skyrocketing wind and solar power and help grid operators meet demand during periods of peak use or failure of other energy sources. The Texas grid, which collapsed sharply during storms in 2021, is regularly experiencing congestion due to a surge in summer demand, while California is ramping up storage capacity along with more solar farms.
The Broad Reach deal, which Engie plans to close in the fourth quarter, will help meet the company's goal of 10 GW of global battery capacity by 2030.
