Global alternative asset and private equity investor KKR announced today the appointment of renewable energy solutions provider Crossover Energy Partners as its exclusive energy transition solutions partner.
As KKR’s partner, Crossover will support KKR’s clean energy projects in collaboration with its infrastructure team, overseeing project origination, development, financing, construction and long-term operation. The collaboration will focus on will focus on the origination of structured Power Purchase Agreements (PPAs), Tolling Agreements, Build-Transfer Agreements (BTAs), as well as offtake optimization, contract structuring, and pursuing new opportunities in rapidly expanding segments such as EV fleets and hydrogen, according to KKR.
Founded by CEO Tiago Sabino Dias, and President Michael Grunow, Crossover consists of industry veterans who have contracted or developed over 10.5 GW of renewable energy and 11.7 GWh of energy storage products over the last three years, with customers including utilities, municipalities, co-ops, community choice aggregations (CCAs), investor-owned utilities (IOUs), and large industrial entities.
Tiago Sabino Dia, Crossover CEO, said:
“Crossover is committed to designing solutions that meet or exceed our partners’ goals by providing dependable access to renewable energy at competitive prices. Our exclusive relationship with KKR will give us an unrivaled ability to execute on that commitment, creating customized energy transition solutions for our customers.”
The new partnership comes amidst rapid growth in global investments in renewable energy globally, with a recent IEA report indicating a 45% increase in renewables capacity additions during 2020. Last month, the IEA indicated that renewable energy investments would need to surge to nearly $5 trillion by 2030, in order to put the world on the pathway to net zero emissions by 2050.
KKR has been an actively investing in the renewable energy space over the past several years. In November, the firm announced a series of renewable energy investment agreements worth $2 billion with energy provider NextEra, and it also recently launched Virescent Infrastructure, a new platform aiming to acquire, own and operate renewable assets in India. Earlier this year, the company announced a series of renewable energy and energy transition-focused hires in its Global Infrastructure team. Over the last ten years, KKR has executed nearly $20 billion in investments in renewable assets with a power generation capacity of 12.5 GW. deploying more than $4.7 billion in renewable assets at a combined enterprise value exceeding $19.5 billion, with a power generation capacity of 12.5 GW over the past ten years.
Benoit Allehaut, Managing Director on KKR’s infrastructure team, said:
“I’ve had the pleasure of working with Tiago, Mike, and the Crossover team for several years and time and again, they have proven their ability to execute on projects while consistently delivering value and certainty for energy customers. Through this relationship, our investors will get added value from distinctive asset sourcing, customized PPAs, technical expertise in storage and renewable energy, deep operational engagement, and active stakeholder management.”