BlackRock announced the acquisition of Australian battery energy storage systems and renewable energy developer Akaysha Energy by its BlackRock Real Assets division, with plans to commit over AUD$1 billion to support the development of more than 1GW of battery storage assets across Australia.
Founded in 2021, Akaysha provides a range of services for the development of Battery Energy Storage Systems (BESS) and renewables projects, spanning early-stage project development and finance and investment solutions through to the delivery through management of complex assets. The company aims to expand to future energy storage projects in other Asia-Pacific markets and to grow its portfolio by adding other renewable energy opportunities, including the development of green hydrogen assets.
Nick Carter, Managing Director of Akaysha, said:
“By tapping into BlackRock’s global capabilities and track record in climate infrastructure, we’re excited to fulfil our ambitions in accelerating the installation of utility-scale energy storage technologies that will mitigate the variability of renewable generation and deliver grid reliability and resilience to power system networks across Asia-Pacific.”
Last month, Australia’s new government introduced a bill that would for the first time set the country’s emissions reduction targets into law. Targets under the proposed legislation include GHG reductions of 43% by 2030, compared to 2005 levels, and the achievement of net zero by 2050. The government also stated that formalizing the country’s climate commitments into law will help enable the businesses and financial community to commit investments in renewable energy.
According to BlackRock, the projects backed by its investment will support the reduction of 15 million tons of CO2 equivalent emissions over their lifetime.
Andrew Landman, Head of Australasia, BlackRock, said:
“This investment reflects our commitment to accelerating Australia’s energy transition. BlackRock is pleased to be contributing to the development of significant battery storage assets that will enhance the grid infrastructure across Australia and, in effect, ensure the delivery of increased energy security for all Australians.”
The acquisition marks the first battery storage investment made by BlackRock’s Climate Infrastructure business – part of BlackRock Real Assets – in the Asia-Pacific region. BlackRock has been actively scaling its climate infrastructure capabilities recently, including the launch in June of a new “perpetual infrastructure strategy,” aimed at pursuing long-term investment opportunities in the megatrend themes of energy transition and energy security.
Charlie Reid, APAC Co-Head of Climate Infrastructure, BlackRock, said:
“As renewable energy infrastructure continues to mature in Australia, investment is required in battery storage assets to ensure the resilience and reliability of the grid, especially with the continued earlier-than-expected retirement of coal-fired power stations.”