South Korean natural gas company SK E&S is to invest up to $400m in LS Power subsidiary REV Renewables, which develops and operates energy storage projects in the US.
Through this investment, SK E&S will acquire a set stake in REV’s renewables and energy storage platform, as well as a seat on the company’s board of directors.
SK E&S executive vice-president and EQ-TF head Kyungyeol Song said: “SK E&S is very committed to realising a net-zero world and has been leading this transition globally with our innovative energy solution business models and technologies.
“We strongly believe that REV will spearhead the transformation of the energy landscape in the United States, creating significant value not only for the business, but also for society as a whole.”
The deal’s completion is subject to regulatory approvals and other closing conditions.
The investment from SK E&S is intended to help REV expedite the expansion of its project portfolio.
LS Power CEO and REV board chairman Paul Segal said: “The energy transition is underway and we believe renewables and storage represent the largest opportunities and challenges.
“We formed REV to tackle these challenges and we are extremely pleased that a company with the vision, sophistication and global reach of SK E&S is investing alongside us in REV Renewables .”
LS Power and SK E&S have agreed to create a joint ‘strategic task force’ to identify opportunities in clean energy technologies and services.
Willkie Farr & Gallagher was legal advisor to both companies, with O’Melveny & Myers providing legal advice for SK E&S.