Norwegian oil and gas major, Equinor has signed an agreement to buy 100% stake in Virginia-based battery energy storage developer, East Point Energy LLC.
East Point Energy has a 4.1 GW current pipeline of early to mid-stage battery storage projects focused on the US East Coast. Further, an additional growth potential beyond the current pipeline has also been identified. The latest acquisition is expected to broaden Equinor's energy offerings in the US market and help steer itself as a leading company in energy transition.
"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," said Olav Kolbeinstveit, Sr. VP for Power and Markets within Renewables at Equinor.
Equinor believes the latest acquisition will provide the company with attractive investment opportunities, and the projects will help enhance returns on the renewables portfolio, while also lowering the portfolio risk.
With this agreement, East Point Energy will become a subsidiary of Equinor with its team continuing to develop business and adding capabilities that would enable them to own and operate energy storage projects in the future.
"On behalf of the East Point Energy team, I am excited to welcome Equinor as the new owner. We look forward to a long and successful relationship developing, owning, and operating energy storage projects in the US," says Andrew Foukal, CEO of East Point Energy.
The transaction agreement between Equinor and East point Energy was signed on July 9 and the transaction is expected to be completed by Q3 2022.
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