UK power storage company Zenobe Energy Ltd. is set to draw more than $1 billion in fresh investment from investors including US private equity giant KKR & Co..
(Bloomberg) — UK power storage company Zenobe Energy Ltd. is set to draw more than $1 billion in fresh investment from investors including US private equity giant KKR & Co..
Started in 2017, Zenobe runs grid-scale batteries and provides charging and battery infrastructure for electric vehicle fleets. KKR plans to invest $750 million in the firm, while existing investor Infracapital, part of M&G Plc, is set to add a further £270 million ($339 million), according to people familiar with the matter.
The parties are discussing a potential valuation of $900 million for the London-based company before the injection of any new money is taken into account, the people said.
Zenobe’s planned growth comes as the power grid becomes a bigger political issue in the UK, where electricity producers and even housing developments are struggling to secure network connections. The government is examining major recommendations to ease the bottlenecks in a landmark report on grid infrastructure issued in August.
Batteries are key to ensuring renewable power from sources such as wind turbines isn’t wasted. They can absorb cheap electricity at times when the grid is over-supplied and unleash it when demand and prices are higher.
Read More: UK Can Halve the Time to Build New Power Lines, Adviser Says
Zenobe said last year that it plans to invest £750 million ($941 million) in a trio of large battery projects in Scotland to help integrate excess wind power into the grid. Those projects will come alongside National Grid Plc’s efforts to expand the UK’s transmission system to ensure more wind generation from Scotland and the North Sea can reach big cities in England.
Last month, KKR hired Charlie Gailliot from Goldman Sachs Group Inc. to lead the company’s new global climate strategy alongside Emmanuel Lagarrigue and Neil Arora. It plans to focus on investing in companies driving the energy transition.
(Updates with details on Infracapital investment from first paragraph.)
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.