Buyout firm KKR & Co. Inc. said on June 29 it would exclusively partner with renewable energy consultant Crossover Energy Partners to develop solar and wind power projects and energy storage systems in North America.
Private equity firms are making a new investment push into clean energy after President Joe Biden’s administration recommitted the U.S. to the Paris climate accord. KKR has been a significant investor in renewable energy since 2011.
In April, the White House said it would back a national clean energy mandate to require the U.S. grid to get most of its power from emissions-free sources by 2030, in line with Biden’s pledge to cut greenhouse-gas emissions in half across the American economy in the next decade.
KKR said its infrastructure team, together with Crossover, will oversee the origination, development, financing, construction and operation of clean energy projects. The partnership will focus on securing power purchase, tolling, and build-transfer agreements from customers such as utilities, municipalities and industrial firms.
“Energy storage is a game-changer and it is revolutionizing the energy industry,” Benoit Allehaut, a KKR managing director focused on clean energy infrastructure, said in an interview. “To seize the moment, you need to work with people who understand how to tailor solutions with customers.”
KKR, which has $28 billion in infrastructure assets under management, said it has invested more than $4.7 billion in renewable energy companies across countries. These include Florida-based NextEra Energy Inc., one of the world’s largest wind and solar power firms, and Indian renewable energy platform Virescent Infrastructure.
KKR is currently raising a $12 billion flagship fund to acquire infrastructure assets from renewable energy projects to oil and gas pipelines, sources told Reuters earlier in March.
Recommended Reading
Exclusive: Aethon M&A Gambit Pays Off with Woodside-Tellurian Deal
2024-08-07 - Aethon Energy, already a large LNG feed-gas supplier, sees Woodside’s acquisition of Tellurian and the Driftwood LNG project as a validation of the natural gas industry’s prospects.
Tellurian’s Martin Houston: Selling to Woodside the ‘Right Deal’
2024-07-22 - Tellurian’s Executive Chairman of the Board Martin Houston discussed with Hart Energy the rationale behind a decision to sell the company to Australia’s Woodside Energy Group Ltd. for $900 million.
Kinetik Closes Acquisition of Durango’s New Mexico Delaware G&P Assets
2024-06-25 - Kinetik Holdings closed a $765 million acquisition of Durango Permian LLC, deepening Kinetik’s footprint of gas gathering and processing assets in the Delaware Basin.
Emera to Sell New Mexico Natural Gas Co. to Bernhard for $750MM
2024-08-06 - Bernhard Capital Partners, which recently purchased CenterPoint Energy assets, will buy utility New Mexico Gas Co. from Emera for $1.25 billion, including debt.
EQT Closes $5.45B Acquisition of Equitrans Midstream
2024-07-22 - In addition to integrating Equistrans’ midstream assets, EQT will focus on reducing the infrastructure company’s debt of between $7.6 billion and $8 billion. Including equity and debt, the deal is valued at roughly $13 billion.