France-based energy giant TotalEnergies announced today an agreement to acquire Kyon Energy, one of Germany’s leading developers of battery storage system, from its three founders. The consideration consists of a €90 million upfront payment, plus some earn out payments linked to the achievement of development targets.
Founded in 2021, Munich-based Kyon Energy develops and operates grid-connected battery storage systems. To date, the company has developed 770 MW of projects, including 120 MW which are already in operation. The company’s pipeline includes 2 GW of advanced-stage products.
Adrian Kapsalis, CEO of Kyon Energy said:
“This partnership with TotalEnergies represents a key moment for Kyon Energy, as we aim to become one of Europe’s leading flexibility providers. By joining forces, we are consolidating our position in the German electricity market, and thus making a direct contribution to its transition to a more sustainable system.”
Energy storage solutions are emerging as a key energy transition investment area. Storage forms one of the major building blocks for the rapidly expanding clean energy transition, given the intermittent generating nature of many sources of renewable energy, such as wind and solar, and the need to satisfy round-the-clock energy demand, while ensuring that energy is not wasted.
TotalEnergies said that it will develop, build, and operate Kyon’s projects, mainly located in the North of Germany, as part of its integrated power strategy, adding that the battery storage system will help provide flexibility to the German electricity system, supporting the expansion of renewable energies.
Stéphane Michel, President Gas, Renewables & Power at TotalEnergies said:
“The acquisition of this company, one of the leaders in its market, is a key element in our presence in the German electricity market, which is the largest in Europe. This acquisition will enable us to accelerate the development of our Integrated Power activities in Germany, both in production, trading, aggregation and marketing of low-carbon electricity available 24 hours a day.”