NYSE-listed private equity firm KKR has set its sights on gaining a substantial foothold in the UK's energy sector and is investing approximately £600 million into UK-based battery energy storage development firm Zenobē.
An additional £270 million of equity investment by existing shareholder M&G plc's Infracapital. The move is aimed at fueling the company's expansion in the UK, North America, Europe, Australia, and New Zealand.
Zenobē has been active in the construction of grid-scale battery energy storage systems (BESS), including a 300MW/600MWh unit located in Blackhillock, Scotland.
The firm has also garnered attention for its fleet electrification solutions and innovative efforts in repurposing EV batteries for integration into BESS, and announced the raise of up to £241 million in early 2022 to finance up to 430 new e-buses in the UK and Ireland.
Zenobē co-founder and director Nicholas Beatty commented:
“Securing substantial further equity is a significant vote of confidence in our business, its achievements to date and future aims. KKR provides Zenobē with a leading international strategic partner to support our expansion plans into North America, Europe and Australasia, and other markets. It supports our ability to raise further debt funding for these plans."
In addition to the influx of Kravis, Kohlberg, and Roberts' capital, Zenobē is backed by CIBC, Siemens Bank, Rabobank, NatWest Group, Santander UK, New Zealand Green, JKH Capital, Jera, Tokyo Electric Power, Tiger Infrastructure Partners, and Infracapital.
The EV fleet and grid-scale battery storage specialist has raised more than £850 million in equity funding since 2017, and in excess of £1.4 billion in total funding.
Lead image via Zenobe.com.