Equinor has bought a 100% stake in U.S.-based battery storage developer East Point Energy LLC. Privately owned East Point Energy is headquartered in Virginia and has a 4.1 GW pipeline of early- to mid-stage battery storage projects focused on the U.S. East Coast.
“The acquisition of East Point Energy represents Equinor’s entry into the U.S. power market through flexible assets,” says Olav Kolbeinstveit, senior vice president for power and markets within Renewables at Equinor. “It will enable Equinor to further unlock the potential we see in the renewables space in the U.S., capturing value from volatility in the power markets and providing reliable services to the grid.”
Equinor sees an opportunity by deploying battery storage assets in selected power markets. This is based on the flexible nature of the assets and Equinor’s advanced trading capabilities through the wholly owned energy trading house Danske Commodities.
The acquisition of East Point Energy is another step in this direction following the 2021 investment in Noriker Power Ltd. The acquisition also further diversifies Equinor’s energy offerings in the U.S. Adding flexible battery storage will complement Equinor’s portfolio of offshore wind, upstream oil and gas, and growing opportunities in the hydrogen and CCS space.
East Point Energy will become a subsidiary of Equinor with its team continuing to develop the business, as well as adding capabilities to own and operate energy storage projects in the near future.
“We look forward to working together with East Point Energy to build a portfolio of battery storage assets in the U.S.,” states Siri Espedal Kindem, senior vice president for Equinor Renewables US. “This strengthens and diversifies our existing renewable energy offerings in the US, which includes substantial offshore wind projects Empire Wind and Beacon Wind.”
“On behalf of the East Point Energy team, I am excited to welcome Equinor as the new owner,” comments Andrew Foukal, CEO of East Point Energy. “We look forward to a long and successful relationship developing, owning and operating energy storage projects in the U.S.”
The transaction is planned to be completed in Q3 2022.