Zenobē announces £600m KKR investment

September 7, 2023

Battery storage system provider ZenobÄ“ has today announced it has secured an investment of around £600 million from investment firm KKR. 

In addition, a further investment of around £270 million has been made by existing shareholder Infracapital. 

Upon completion of the transaction, which is subject to “customary closing conditions” and regulatory approvals, KKR and Infracapital will become joint majority shareholders in Zenobē. Jera and TEPCO Power Grid will remain as minority shareholders.

“The investment will fuel the expansion of the company’s fleet electrification and grid-scale battery storage business, accelerating the decarbonisation of fleet transportation and maximising the uptake of renewables,” 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 company’s battery storage asset at Blackhillock. The site will support the integration of wind power resources into the grid and Zenobē’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: “Batteries are the under-recognised crucial component of our future transport and energy systems, and they’re available now. We’re making huge strides in decarbonisation but it’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 operators’ fleet while achieving zero emissions.” 

Alberto Signori, Partner, European Infrastructure at KKR, said:  “This 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 Zenobē’s existing customer base, as well as huge potential in new markets globally.”