Wärtsilä reviews €1bn storage business with sale considered

November 1, 2023

The board of directors at Helsinki-headquartered Wärtsilä, one of the world’s five biggest battery energy storage system (BESS) integrators, has decided to initiate a strategic review of its €1 billion energy storage and optimisation (ES&O) business, with a sale among the options being considered. 

The strategic review aims to “assess options that would accelerate the profitable growth of the ES&O business in a way that benefits its customers, employees, and the value creation for Wärtsilä shareholders,” a statement said.

It added: “As part of this process, all potential alternatives will be considered. Such alternatives could include different ownership options of the ES&O business from continued full ownership to potential full or partial divestment of the business or other possible strategic alternatives. Wärtsilä continues to be committed to develop and invest in the ES&O business during the strategic review and remains fully committed to its customers throughout the process.” 

On a twelve-month rolling basis, the ES&O net sales by the end of Q3 2023 amounted to €983 million. “On the same twelve-month rolling basis, the business turned to profitability,” the statement said.

HÃ¥kan Agnevall, president and CEO of Wärtsilä, commented: “We have made solid progress in our energy storage and optimisation business and the market continues to show remarkable growth. Thus, this is an opportune moment for us to assess future options and define the best way to support the growth of the business and create shareholder value.” 

Wärtsilä’s board of directors has not set a timetable for the completion of the strategic review. “Wärtsilä will disclose the progress and conclusions of the review according to applicable disclosure laws and regulations,” the statement added.

The top five BESS integrators in terms of installed projects (that is, projects completed as of July 2023) are, in descending order: Sungrow, Fluence, Tesla, Wärtsilä and Hyperstrong. However, when measured in terms of global pipeline (that is, installed and contracted projects), the top five integrators, according to S&P, are (in descending order): Fluence, Sungrow, Wärtsilä, Tesla and Hyperstrong.