Battery Storage Firm Zenobe in Talks with KKR Over $750 Million Investment

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KKR & Co. plans to invest $750 million in UK energy storage company Zenobe Energy Ltd., marking a first step in the US private equity giant’s global climate strategy.

Started in 2017, Zenobe runs grid-scale batteries and provides charging and battery infrastructure for electric vehicle fleets. The parties are discussing a potential valuation of $900 million for the London-based company before the injection of any new money is taken into account, according to people familiar with the matter.

Zenobe’s planned growth comes as the power grid becomes a bigger political issue in the UK, where power producers and even housing developments are struggling to secure electricity connections. The government is examining major recommendations to ease the bottlenecks in a landmark report on grid infrastructure issued in August.

Batteries are key to ensuring renewable power from generators such as wind turbines isn’t wasted. They can absorb cheap electricity at times when the grid is over-supplied and unleash it when demand and prices are higher.Zenobe said last year that it plans to invest £750 million in a trio of large battery projects in Scotland to help integrate excess wind power into the grid.

Last month, KKR hired Charlie Gailliot from Goldman Sachs Group Inc. to lead the company’s global climate strategy alongside Emmanuel Lagarrigue and Neil Arora. It plans to focus on investing in companies driving the energy transition.

 

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