SK E&S buys over U.S. grid solution firm to bolster energy solution biz

[Photo provided by SK E&S Co.]

SK E&S Co., energy unit of South Korea’s SK Group, has taken over management rights in U.S.-based Key Capture Energy LLC (KCE) to build a market leading energy storage platform in the U.S., which will serve as a gateway into the global energy solution market.

SK E&S announced on Thursday that it has taken over management control in KCE by purchasing its 95 percent stake. The financial term of the deal was not disclosed.

KCE is one of the leading grid solution providers in the U.S. that operates 3-gigawatt energy storage solution (ESS) projects in New York and Texas. The company is planning to expand into the northeast and central states in the U.S. where demands for renewable energy are surging.

Grid solution combines energy storage systems with artificial intelligence to guarantee constant electricity supplies, aiming to solve the instability of renewable power generation. According to global consulting firm Wood McKinsey, the ESS-based grid solution industry in the U.S., which currently has a capacity of 6 GW, will grow at an annual rate of more than 60 percent on average to reach 76 GW by 2030.

SK E&S said it will invest about $600 million in acquiring KCE’s management right and undertaking new projects in the next two to three years, pledging to groom KCE into the U.S. No.1 energy solution provider by 2025 by leveraging on its experience in handling large-scale power trading and SK Group’s battery and software capabilities.

“We expect that KCE’s energy solution will greatly contribute to cutting greenhouse gas emissions by enhancing power generation efficiency and maximizing consumers’ efficient use of electricity,” said SK E&S vice chairman Yoo Jung-joon.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]