SK E&S secures KCE's management rights and 90% stake to bolster ESS business

Lim Chang-won Reporter() | Posted : September 9, 2021, 12:30 | Updated : September 9, 2021, 12:30

[SK E&S]

SEOUL -- SK E&S, an energy company affiliated with South Korea's SK Group, secured management rights of Key Capture Energy by acquiring a 95 percent stake in the American developer and operator of energy storage projects and vowed to nurture it as a global leader in the energy solution market.

Key Capture Energy (KCE) identifies, develops, constructs and operates energy storage solutions to foster greater deployment of renewable energy. The company aims to have more than one gigawatts of battery storage projects in operation in New York, New England, and Texas by the close of 2023, under a variety of offtake contracts.

SK E&S would grow KCE into a global leading company by 2025 through additional investment and advancement of business models. About $600 million would be invested in the acquisition of KCE's management rights and the promotion of new projects. "We hope that KCE's energy solution service will greatly contribute to reducing greenhouse gas emissions if f we increase the efficiency of electricity supply by utilizing surplus electricity and maximize consumers' efficient use of electricity," said SK E&S vice chairman Yoo Jung-joon.

Grid solution is a new industry that combines energy storage linked to transmission and distribution networks with artificial intelligence technology to maintain a constant electricity supply. The grid solution business solves the instability of power supply due to the expansion of renewable energy and reduces social costs due to the expansion of power grids as large-scale power transmission and distribution networks are not required.

KCE said the acquisition would allow SK E&S to build a market-leading energy storage and clean energy platform in the United States. "SK E&S's investment marks their confidence in our team, our strategy, and in the tremendous potential of the U.S. energy storage market, which is estimated to be an $8.5 billion annual market in 2026," KCE CEO Jeff Bishop said in a statement. "We look forward to working responsibly with SK E&S, project by project, to become the U.S. market leader in energy storage."
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