PE Deals

EnCap, Apollo and others to sell Broad Reach’s battery storage biz to Engie

The sellers are EnCap Energy Transition, Yorktown Partners, Mercuria Energy and Apollo.

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  • Broad Reach was founded in 2019
  • Apollo acquired a 50 percent stake in the company and joined the board in December 2021
  • The transaction does not include the company’s portfolio of 1.8GW of solar and wind power projects together with 4GWh of battery storage in the Mountain West region of the US

French multinational utility company Engie has agreed to acquire Houston-based Broad Reach Power’s battery storage business. The sellers are EnCap Energy Transition, Yorktown Partners, Mercuria Energy and Apollo.

Founded in 2019, Broad Reach is a developer and operator of renewable energy and energy storage power projects in Texas, California and other markets.

Apollo acquired a 50 percent stake in the company and joined the board in December 2021.

The sale to Engie includes 350 MW of grid-scale battery assets in operation and 880 MW under construction mainly in the Electric Reliability Council of Texas territory, with commissioning expected before the end of 2024. The acquisition also includes a 1.7 GW pipeline of battery storage projects at an advanced stage of development and a significant pipeline of early-stage projects. The first CAISO storage asset is expected to be operational in 2023.

The transaction does not include the company’s portfolio of 1.8GW of solar and wind power projects together with 4GWh of battery storage in the Mountain West region of the U.S.

On the sale, Apollo Infrastructure Partner Corinne Still said in a statement, “At Apollo, we’re committed to being leading investors in the energy transition, and we’re proud to have been a significant, value-add owner of Broad Reach Power during years of incredible growth for the business. Together with EnCap and the Broad Reach Power management team, we’ve built what we believe is the leading and most innovative battery storage IPP in North America. We wish the Broad Reach team all the best in their next phase of growth with Engie.”

EnCap Investments is a provider of growth capital to the independent sector of the U.S. energy industry.

As of June 30, 2023, Apollo had approximately $617 billion of assets under management.