Through a fund managed by its Diversified Infrastructure business, BlackRock Alternatives has agreed to acquire Jupiter Power – an operator and developer of stand-alone utility-scale battery energy storage systems – from existing backers for an undisclosed amount.
EnCap Energy Transition Fund I (EETF I) and co-investment partners Yorktown Partners and Mercuria Energy are selling Jupiter, and the transaction is expected to close in late 2022.
Founded in 2017, Jupiter has focused on data-driven approaches to large-scale, stand-alone energy storage projects designed to meet the growing need for grid support and renewables integration driven by the energy transition.
The company owns and operates a large storage fleet in Texas comprising 655 MWh and currently has 340 MWh of new projects in or near construction, including its first project in California.
“Acquisition of Jupiter’s uniquely capable energy storage platform by BlackRock’s Diversified Infrastructure business is another sign that energy storage is maturing into an important new player in the electricity business with a critical role to play,” said Jupiter Power CEO Andy Bowman. “Our team has special insight into the many useful things storage can do because of our deep prior experience with renewable energy projects, and we are proud to help lead the way now to the next generation of utility-scale energy storage systems.”
In April this year, Jupiter raised $174.6 million in portfolio debt financing for six battery energy storage projects in the ERCOT market in Texas.
“Jupiter is a pioneer in the utility-scale battery energy storage industry in the U.S. We are proud to have been their capital provider and partner as they grew the platform and facilitated the integration of renewables onto the U.S. power grid,” said EnCap Energy Transition Managing Partner Kellie Metcalf.
EnCap was an early investor in Jupiter and has been a provider of capital in the U.S. energy storage business.
The acquisition of Jupiter by BlackRock’s Diversified Infrastructure business, part of BlackRock Alternatives, is the second exit transaction by EnCap’s $1.2 billion EETF I. In addition to Jupiter, EETF I have backed energy transition companies, including Catalyze Energy (distributed commercial and industrial solar plus batteries), Solar Proponent (large-scale solar), Triple Oak Power (utility-scale wind power), and Arbor Renewable Gas (clean fuels), among others.
According to Mercom’s 9M And Q3 2022 Funding and M&A Report for Storage, Grid & Efficiency. There were 23 (eight disclosed) Energy Storage M&A transactions in 9M 2022 compared to 15 transactions (three disclosed) in 9M 2021.