EnCap Investments sells Jupiter Power to BlackRock


HOUSTON-(BUSINESS WIRE)–EnCap Investments LP announced this today BlackRock alternativesthrough a fund managed by its Diversified Infrastructure business, has agreed to the acquisition Jupiter Power LLCa leading US operator and developer of self-contained utility-scale battery energy storage systems.

EnCap Energy Transition Fund I (EETF I) and co-investment partners Yorktown Partners and Mercuria Energy are selling Jupiter and the transaction is expected to close in late 2022, subject to customary closing conditions.

Since its founding in 2017, Jupiter has focused on proprietary data-driven approaches for large-scale, self-contained energy storage projects designed to meet the growing need for grid support and renewable energy integration driven by the energy transition. Jupiter’s team includes 70 professionals with more than 25,000 megawatts (MW) of experience in past power generation projects worldwide, including some of the first utility-scale energy storage projects built in the United States. With this expertise, Jupiter has assembled one of the earliest and most geographically diversified storage development pipelines in the country totaling over 11,000 MW from California to Maine. The Company owns and operates a large storage fleet in Texas totaling 655 megawatt hours (MWh) and currently has 340 MWh of new projects under or near construction, including its first project in California. In early 2022, Jupiter completed a landmark debt financing of its portfolio of operations for a standalone storage portfolio and announced a collaboration to secure 2,400 MWh of household-qualified battery energy storage systems for its 2024-2025 projects.

“The acquisition of Jupiter’s uniquely capable energy storage platform by BlackRock’s Diversified Infrastructure business is another sign that energy storage is maturing as a major new player in the electricity business with a critical role to play,” said Jupiter Power CEO Andy Bowman. “Our team has unique insight into the many useful things storage can do through our years of experience in renewable energy projects, and we are proud to now be paving the way for the next generation of utility-scale energy storage systems.”

“Jupiter is a pioneer in the utility-scale battery energy storage industry in the United States. We are proud to have been their investor and partner as they expanded the platform and facilitated the integration of renewable energy into the US grid,” said EnCap Energy Transition Managing Partner Kelly Metcalf, who is also the chairman of Jupiter’s board of directors. “We are excited about the company’s prospects for future success.”

EnCap was an early investor in Jupiter and has been an aggressive investor in the fast-growing US energy storage business since it began pursuing opportunities created by the global transition to a lower-carbon energy system. With EnCap’s financial backing and strategic expertise, Jupiter leveraged its early development positions, supplier relationships and proprietary shipping applications to successfully implement its innovative portfolio. This has enabled Jupiter to become a leader in bridging the gap between intermittent generation supply and real-time consumer demand for electricity.

The acquisition of Jupiter by BlackRock’s Diversified Infrastructure business, part of BlackRock Alternatives, is the second exit transaction of EnCap’s $1.2 billion EETF I. In addition to Jupiter, EETF I has supported leading energy transition companies including Catalyze Energy (distributed commercial and industrial solar energy). plus batteries), Solar Proponent (large-scale solar), Triple Oak Power (utility-scale wind power), and Arbor Renewable Gas (clean fuels).

White and Case, LLP acted as legal advisor and Lazard acted as financial advisor to the seller and Simpson Thacher & Bartlett acted as legal advisor to BlackRock.

About EnCap Investments LP

Since 1988, EnCap Investments has been a leading provider of growth capital to the independent sector of the US energy industry. The firm has raised 22 institutional investment funds totaling approximately $38 billion and currently manages capital on behalf of more than 350 US and international investors. Founded in 2019, the EnCap Energy Transition platform is led by four Managing Partners, each with 25-30 years of experience in developing and operating renewable energy and power generation. For more information, please visit www.encapinvestments.com.

About Jupiter Power

Jupiter is a leading battery energy storage infrastructure platform with extensive commercial, analytical, engineering, financial, operational and engineering capabilities and unparalleled intellectual property in shipping optimization. Jupiter is backed by EnCap Investments LP, Yorktown Partners and Mercuria Energy and has offices in Austin and Houston, Texas and Chicago, Illinois. Jupiter has a 655 MWh portfolio of commercial utility-scale battery energy storage projects, 340 MWh of projects under construction or nearing completion, and a pipeline of over 11,000 MW of new projects in active development. For more information about Jupiter Power, please visit our Twitter, LinkedIn or Facebook pages or visit us www.jupiterpower.io


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