TotalEnergies, a global leader in the oil and gas industry, announced today the acquisition of Kyon Energy, a renowned battery energy storage system (BESS) project developer based in Germany. The deal solidifies TotalEnergies’ commitment to expanding its presence in the rapidly growing energy storage sector.
Under the agreement, TotalEnergies will pay an upfront amount of €90 million (US$98 million) to acquire Kyon Energy from its three founders. Additional payments will be made based on the achievement of specific development targets. Kyon Energy has demonstrated exceptional progress in its forward pipeline of projects, including 120MW of operational BESS projects that have already been developed and sold to long-term owners.
The company has also advanced 350MW of projects to the construction stage and has another 300MW ready-to-build. Furthermore, Kyon Energy boasts an impressive ‘advanced stage’ pipeline of projects totaling 2GW, positioning it as one of the most active players in the German energy storage market.
A key collaboration that has caught attention within the industry is Kyon Energy’s partnership with investor Obton, which resulted in the sale of nearly 200MW of projects last year. Notably, Kyon Energy is currently working on the development of a 137.5MW/275MWh BESS in Lower Saxony, which received approval in November. This follows the green light for a 58MW/116MWh system in Saxony-Anhalt just a month prior.
TotalEnergies views the acquisition of Kyon Energy as a strategic move to enhance its integrated energy strategy. This comes after the company’s success in securing offshore wind projects in Germany and the recent acquisition of aggregator Quadra Energy. TotalEnergies is already a major player in the energy storage market, owning Saft, a leading BESS technology provider headquartered in France. Saft specializes in deploying projects in remote or extreme weather conditions, serving industries such as transport, defense, and industry.
The acquisition of Kyon Energy creates new opportunities for TotalEnergies to expand its footprint in the German market. Saft’s expertise in deploying projects in various regions, including the US, France, and Belgium, can be leveraged to accelerate the growth of energy storage solutions in Germany.
Germany has experienced a surge in the grid-scale energy storage market since 2021. Factors such as high prices in ancillary service markets, energy trading opportunities, and declining costs of lithium-ion BESS products have created a favorable business environment. Additionally, the regulatory landscape in Germany has become increasingly supportive of energy storage, with recent extensions of grid fee exemptions and the publication of the country’s first Electricity Storage Strategy.
Florian Antwerpen, Managing Director of Kyon Energy, shared his insights on the company’s achievements in a recent Year in Review article. Together with other prominent European developer/operators, Aquila Clean Energy EMEA and Baywa r.e., Kyon Energy continues to play a vital role in advancing the energy storage sector across Europe.
Source: Energy Storage News
