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East Point Energy, a privately owned company, is headquartered in Charlottesville. It has a 4.1GW pipeline of battery storage projects that are either early or mid-stage. These projects are primarily focused on the US East Coast. There is additional growth potential beyond what is currently in the pipeline.
“Equinor’s entry to the US power market is made possible by the acquisition of East Point Energy. This acquisition represents Equinor’s entry through flexible assets. This will allow Equinor to unlock the potential in the US renewables market, capture volatility and provide reliable services to the grid,” Olav Kolbeinstveit (Senior Vice President for Power and Markets within Renewables), Equinor, says.
As the world’s share of intermittent renewable energy increases, battery storage will be an integral part of the energy transition. The key to further penetration of renewables is battery storage. It can help stabilize power markets and increase supply security. We will have attractive investment opportunities. The projects will increase the portfolio’s return while lowering portfolio risk.
Equinor believes there is a strong opportunity for a profitable business to deploy battery storage assets in select power markets. This is due to the flexibility of the assets as well as Equinor’s advanced trading capabilities via Danske Commodities, its wholly-owned energy trading company.
After the 2021 investment by Noriker Power Limited (a major battery storage developer in the United Kingdom), the acquisition of East Point Energy represents another step in that direction. Equinor will also be able to diversify its energy offerings in America, strengthening our position as a reliable energy supplier. Equinor will add flexible battery storage to its portfolio of offshore wind, oil, and gas, and growth opportunities in the hydrogen or CCS space.
East Point Energy is a highly skilled team that has successfully divested several high-quality, ready-to-build battery storage projects in America since 2018. Equinor will acquire East Point Energy as a subsidiary. The team will continue to grow the business and add capabilities to owning and operating energy storage projects.
“We look forward to working with East Point Energy to create a portfolio of battery storage assets in America. This will strengthen and diversify our existing renewable energy offerings, which include substantial offshore wind projects Empire Wind, and Beacon Wind,” said Siri Espedal Kindem (senior vice president, Equinor Renewables US).
“I am thrilled to welcome Equinor, on behalf of the East Point Energy Team.” Andrew Foukal CEO of East Point Energy, says that the company looks forward to a long-lasting and productive relationship in developing, owning, and operating energy storage facilities in the US.
The transaction agreements were signed on 9 July. It is expected that the transaction will be completed in Q3 2022.