Transaction is a natural next step following a strategic investment and development partnership established in 2021
9th October 2024, ZURICH/ LONDON — BW ESS, a global energy storage owner-operator has reached an agreement to acquire all remaining shares not already owned in Penso Power. BW ESS was already the largest shareholder in the company and the transaction will also see the founders of Penso Power become shareholders and members of the senior management team of the newly combined entity. Operating as BW ESS, the company will combine world-class engineering, project delivery, commercial and business development capabilities to unlock the value of utility-scale energy storage globally. The market for utility-scale battery storage is projected to exceed US$120 billion by 2030[1] with an annual growth rate of 21%[2].
With a team of nearly 30 energy storage specialists, BW ESS will cover all stages of project development, deployment and operation, maintaining a long-term investment perspective as an owner-operator. Already holding operational assets in Sweden and over 1GWh of projects under construction in the UK, Sweden, and Australia, the transaction grows BW ESS’ portfolio with the addition of Penso Power’s UK and Australian pipeline of more than 2GW. The combined entity now holds a pipeline of approximately 5GW across a range of territories.
Erik Strømsø, CEO of BW ESS, said: “We have worked closely with Penso Power since 2021 and already view them as trusted colleagues. Our teams have together entered new markets and pioneered innovative energy storage solutions. The combination of Penso’s pioneering development and engineering expertise with our global corporate platform creates substantial synergies and is a natural next step that readies us for continued growth and investment in a rapidly evolving global energy storage landscape.
“I’m excited to welcome the whole Penso Power team as fully-fledged colleagues. With their expertise and experience onboard, we are a meaningful step closer to achieving our mission of unlocking the value of energy storage, which is crucial to enabling and accelerating the energy transition.”
Richard Thwaites, CEO of Penso Power, said: “Penso Power is proud to be a pioneer in grid-scale energy storage since 2017. We delivered Europe’s first 100MW project at Minety in 2020, a project that also secured the first revenue floor contract for a large grid-scale battery asset. More recently, we have built the 331MWh Bramley project in Hampshire in partnership with BW ESS and that project secured the first single-asset toll agreement for a battery asset in the UK. Our partnership with BW ESS since 2021 has enabled us to build out the Penso Power team and enter new markets in Italy and Australia. This transaction completes the evolution of the Penso Power business to become part of a global energy storage platform. Working as one team, we’ll leverage our combined skillsets and experience to capitalise on new and emerging opportunities across global energy storage.”
BW ESS was advised by law firm Bird & Bird LLP. Penso Power was advised by CMS.
The development of all portfolio projects will continue in parallel with a short period of integration.
BW ESS and Penso Power are currently constructing the 100MW / 331MWh Bramley battery energy storage system project in Hampshire with energisation expected in Q4 2024 and recently signed a seven-year tolling agreement with Shell Energy Europe Limited. The companies have also jointly advanced UK projects at Hams Hall and Berkswell to ready-to-build status and are developing three projects in Italy with partner ACL Energy.
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About BW ESS
BW ESS is a global energy storage owner-operator, moving with speed to develop, build and operate market-leading energy storage projects across multiple countries. Working with strategic partners in the UK, Italy, Sweden and Australia, the business has grown a multi-gigawatt development pipeline, with over 1GWh of projects currently in construction. As an active investor with development exposure, BW ESS has a strategy to hold assets for the long-term, taking a hands-on approach to unlock value throughout the energy storage asset lifecycle.
Part of BW Group, BW ESS is able to leverage decades of experience in energy infrastructure investment, delivery and operation – and the scale and connections needed to move the needle in global energy storage. To find out more, visit: https://bw-ess.com/
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[1] Source: McKinsey https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/enabling-renewable-energy-with-battery-energy-storage-systems
[2] Source: Bloomberg https://about.bnef.com/blog/global-energy-storage-market-records-biggest-jump-yet/