TotalEnergies has announced its agreement to purchase Kyon Energy, a prominent developer of battery storage systems in Germany. The deal includes a €90 million upfront payment, as well as additional earn-out payments tied to the fulfillment of development objectives.
Kyon Energy, established in 2021, has successfully developed 770 MW of projects, with competitive connection costs. Currently, 120 MW are in operation, 350 MW are under construction, and 300 MW are ready to be built. Furthermore, Kyon Energy has a pipeline of advanced-stage projects totaling 2 GW.
This acquisition aligns with TotalEnergies’ integrated power strategy, as the company will develop, construct, and operate these projects, primarily located in northern Germany. It follows a series of achievements for TotalEnergies in the country, including acquiring Quadra Energy, a renewable energy aggregator, winning a contract to establish and manage 1,100 high-power EV charging points, and being awarded a maritime concession for a 3 GW offshore wind farm. The acquisition further strengthens TotalEnergies’ ability to provide reliable and competitive power to its German customers.
The integration of Kyon Energy’s battery storage system will enhance the resilience of Germany’s electricity grid, addressing congestion issues and offering additional flexibility. Ultimately, this will support the rapid growth of renewable energy sources in the country.
Stéphane Michel, President Gas, Renewables & Power at TotalEnergies, warmly welcomed the Kyon Energy team, emphasizing the significance of the acquisition. He stated, „This partnership will accelerate the development of our Integrated Power activities in Germany, spanning production, trading, aggregation, and marketing of low-carbon electricity available around the clock. Additionally, it contributes to our profitability target of achieving a 12% return on average capital employed (ROACE) in this business segment by 2028.”
Adrian Kapsalis, CEO of Kyon Energy, highlighted the partnership’s importance for his company’s ambition to become a leading flexibility provider in Europe. Through this collaboration, Kyon Energy strengthens its position in the German electricity market and actively contributes to the transition towards a more sustainable energy system.
FAQ:
1. What is the agreement announced by TotalEnergies?
TotalEnergies has announced its agreement to purchase Kyon Energy, a developer of battery storage systems in Germany.
2. What is the upfront payment in the deal?
The deal includes a €90 million upfront payment.
3. Are there any additional payments in the deal?
Yes, there are additional earn-out payments tied to the fulfillment of development objectives.
4. When was Kyon Energy established?
Kyon Energy was established in 2021.
5. How much MW of projects has Kyon Energy developed?
Kyon Energy has successfully developed 770 MW of projects.
6. What is the current status of Kyon Energy’s projects?
Currently, 120 MW are in operation, 350 MW are under construction, and 300 MW are ready to be built.
7. Does Kyon Energy have any advanced-stage projects in the pipeline?
Yes, Kyon Energy has a pipeline of advanced-stage projects totaling 2 GW.
8. What is TotalEnergies’ strategy for these projects?
TotalEnergies will develop, construct, and operate these projects, primarily located in northern Germany.
9. What other achievements has TotalEnergies had in Germany?
TotalEnergies has acquired Quadra Energy, won a contract for high-power EV charging points, and been awarded a concession for a 3 GW offshore wind farm.
10. How does this acquisition strengthen TotalEnergies’ position?
The acquisition strengthens TotalEnergies’ ability to provide reliable and competitive power to its German customers.
11. How will Kyon Energy’s battery storage system enhance Germany’s grid?
The integration of Kyon Energy’s battery storage system will enhance the resilience of Germany’s electricity grid, addressing congestion issues and offering additional flexibility.
12. What is the significance of this partnership?
According to Stéphane Michel, President Gas, Renewables & Power at TotalEnergies, this partnership will accelerate the development of their Integrated Power activities in Germany.
Definitions:
– Battery storage systems: Systems that store electrical energy in batteries for later use.
– MW: Megawatts, a unit of power measurement equal to one million watts.
– Pipeline: In this context, a planned or proposed project that is currently in advanced stages of development.
– Renewable energy sources: Energy sources that are replenished naturally and sustainably, such as solar power, wind power, and hydropower.
Suggested related link: TotalEnergies website
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