Battery storage system provider ZenobÄ“ has today announced it has secured an investment of around Â£600 million from investment firm KKR.
In addition, a further investment of around Â£270 million has been made by existing shareholder Infracapital.
Upon completion of the transaction, which is subject to â€œcustomary closing conditionsâ€ and regulatory approvals, KKR and Infracapital will become joint majority shareholders in ZenobÄ“. Jera and TEPCO Power Grid will remain as minority shareholders.
â€œThe investment will fuel the expansion of the companyâ€™s fleet electrification and grid-scale battery storage business, accelerating the decarbonisation of fleet transportation and maximising the uptake of renewables,â€ a statement said.
ZenobÄ“ supports more than 1,000 electric buses, trucks and commercial vehicles worldwide, and has worked with operators to deploy vehicles in over 75 depots ranging from Glasgow and Coventry in the UK to Sydney and Melbourne in Australia.
Funding from the equity investment will significantly expand the number of electric vehicles and charging equipment supported by the company. By 2026, ZenobÄ“ aims to support 4,000 electric buses, trucks and commercial vehicles on the road.
This latest equity investment will enable the business to accelerate its offering with the design and construction of two additional battery storage sites across Scotland at Kilmarnock South and Eccles. It will also enable an extension of capacity at the companyâ€™s battery storage asset at Blackhillock. The site will support the integration of wind power resources into the grid and ZenobÄ“â€™s target to commission around 1.2GW of storage in the UK by 2026. The investment will also support its target to develop an additional 2.5GW of battery energy storage assets in North America and Australia by 2030.
Nicholas Beatty, co-founder and director of ZenobÄ“, said: â€œBatteries are the under-recognised crucial component of our future transport and energy systems, and theyâ€™re available now. Weâ€™re making huge strides in decarbonisation but itâ€™s clear that too much renewable energy is being wasted and that transport decarbonisation must move faster. Batteries are critical to optimising the use of renewable electricity and making cheaper, greener and more secure power accessible. As fleet operators transition to electric, batteries offer a proven and available technology which, combined with software and data insights, can optimise the operatorsâ€™ fleet while achieving zero emissions.â€
Alberto Signori, Partner, European Infrastructure at KKR, said: â€œThis is a rare opportunity to support a clear leader in transport decarbonisation and battery storage, two sectors which are critical in driving the transition to a net zero world. We believe ZenobÄ“ will continue to benefit from strong secular tail winds including stricter emission regulation in urban and regional areas, and the greater use of low carbon generation in the energy mix driving a need for grid balancing solutions. We see significant growth opportunities within ZenobÄ“â€™s existing customer base, as well as huge potential in new markets globally.â€