Excelsior Energy Capital Enters Multiyear, 2.2 GWh Agreement with Fluence to Utilize Domestically Manufactured Battery Cells in US Energy Storage Projects
Excelsior Energy Capital has entered a multiyear agreement with Fluence Energy Inc. (NASDAQ: FLNC) to develop 2.2 GWh of battery energy storage system (BESS) infrastructure across the United States, starting in 2025. The agreement focuses on utilizing domestically manufactured battery cells from Tennessee and Fluence battery modules from Utah, supporting American grid stability, manufacturing capacity, and supply chain strength.
This partnership aims to reduce battery supply risks, enhance local economies, and accelerate U.S. renewable energy infrastructure. The agreement follows Excelsior's recent announcements, including the sale of a 38-project portfolio to BlackRock, the launch of Lydian Energy, and a 2 GW agreement with Heliene Inc. for domestically produced photovoltaic modules.
Excelsior Energy Capital ha stipulato un contratto pluriennale con Fluence Energy Inc. (NASDAQ: FLNC) per sviluppare un'infrastruttura di 2,2 GWh di sistemi di stoccaggio energetico a batteria (BESS) negli Stati Uniti, a partire dal 2025. L'accordo si concentra sull'utilizzo di celle di batteria prodotte localmente nel Tennessee e moduli di batteria Fluence dallo Utah, supportando così la stabilità della rete americana, la capacità produttiva e la solidità della catena di approvvigionamento.
Questo partenariato mira a ridurre i rischi legati all'approvvigionamento di batterie, migliorare le economie locali e accelerare l'infrastruttura energetica rinnovabile negli Stati Uniti. L'accordo segue gli annunci recenti di Excelsior, tra cui la vendita di un portafoglio di 38 progetti a BlackRock, il lancio di Lydian Energy e un accordo da 2 GW con Heliene Inc. per moduli fotovoltaici prodotti a livello nazionale.
Excelsior Energy Capital ha firmado un acuerdo por varios años con Fluence Energy Inc. (NASDAQ: FLNC) para desarrollar una infraestructura de 2.2 GWh de sistemas de almacenamiento de energía en baterías (BESS) en los Estados Unidos, comenzando en 2025. El acuerdo se centra en utilizar celdas de batería fabricadas localmente en Tennessee y módulos de batería Fluence de Utah, apoyando la estabilidad de la red estadounidense, la capacidad de fabricación y la solidez de la cadena de suministro.
Esta asociación tiene como objetivo reducir los riesgos de suministro de baterías, mejorar las economías locales y acelerar la infraestructura de energía renovable en EE. UU. El acuerdo sigue a los recientes anuncios de Excelsior, que incluyen la venta de un portafolio de 38 proyectos a BlackRock, el lanzamiento de Lydian Energy y un acuerdo de 2 GW con Heliene Inc. para módulos fotovoltaicos producidos a nivel nacional.
엑셀시어 에너지 캐피탈은 플루언스 에너지 주식회사(NASDAQ: FLNC)와 2025년부터 시작하여 미국 전역에 2.2 GWh의 배터리 에너지 저장 시스템(BESS) 인프라를 개발하기 위한 다년 계약을 체결했습니다. 이 계약은 테네시에서 제조된 국내 생산 배터리 셀과 유타의 플루언스 배터리 모듈을 활용하는 데 중점을 두어 미국의 전력망 안정성, 제조 능력 및 공급망 강화를 지원합니다.
이 파트너십은 배터리 공급 리스크를 줄이고 지역 경제를 개선하며 미국 재생 가능 에너지 인프라를 가속화하는 것을 목표로 합니다. 이 계약은 블랙록에 38개 프로젝트 포트폴리오를 판매한 것, 리디안 에너지를 출시한 것, 국내에서 생산된 태양광 모듈에 대해 헬리엔 주식회사와 2 GW 계약을 체결한 등 엑셀시어의 최근 발표에 따른 것입니다.
Excelsior Energy Capital a conclu un accord pluriannuel avec Fluence Energy Inc. (NASDAQ: FLNC) pour développer une infrastructure de 2,2 GWh de systèmes de stockage d'énergie par batterie (BESS) aux États-Unis, à partir de 2025. L'accord vise à utiliser des cellules de batterie fabriquées localement dans le Tennessee et des modules de batterie Fluence de l'Utah, soutenant ainsi la stabilité du réseau américain, la capacité de fabrication et la solidité de la chaîne d'approvisionnement.
Ce partenariat vise à réduire les risques d'approvisionnement en batteries, à améliorer les économies locales et à accélérer l'infrastructure des énergies renouvelables aux États-Unis. Cet accord fait suite aux récents annonces d'Excelsior, y compris la vente d'un portefeuille de 38 projets à BlackRock, le lancement de Lydian Energy et un accord de 2 GW avec Heliene Inc. pour des modules photovoltaïques produits localement.
Excelsior Energy Capital hat einen Mehrjahresvertrag mit Fluence Energy Inc. (NASDAQ: FLNC) unterzeichnet, um eine Infrastruktur für 2,2 GWh von Batteriespeichersystemen (BESS) in den Vereinigten Staaten zu entwickeln, beginnend im Jahr 2025. Der Vertrag konzentriert sich auf die Nutzung von inländisch hergestellten Batteriezellen aus Tennessee und Fluence-Batteriemodulen aus Utah, um die Stabilität des amerikanischen Stromnetzes, die Produktionskapazität und die Stärke der Lieferkette zu unterstützen.
Diese Partnerschaft zielt darauf ab, die Risiken bei der Batterieversorgung zu reduzieren, die lokale Wirtschaft zu stärken und die Infrastruktur für erneuerbare Energien in den USA zu beschleunigen. Der Vertrag folgt auf die kürzlichen Ankündigungen von Excelsior, darunter den Verkauf eines Portfolios von 38 Projekten an BlackRock, die Gründung von Lydian Energy und einen Vertrag über 2 GW mit Heliene Inc. für inländisch produzierte Photovoltaikmodule.
- Secures 2.2 GWh of battery energy storage system infrastructure development
- Utilizes domestically manufactured battery cells and modules, supporting U.S. jobs and production capacity
- Reduces battery supply risks for Excelsior's projects
- Strengthens domestic supply chain for critical clean tech
- None.
Insights
The agreement between Excelsior Energy Capital and Fluence for 2.2 GWh of battery energy storage systems (BESS) is a significant development in the U.S. energy storage market. This collaboration, set to commence in 2025, underscores the growing importance of energy storage in supporting grid resilience and the transition to renewable energy.
Key points to consider:
- The 2.2 GWh scale of the agreement is substantial, indicating a major commitment to energy storage deployment.
- The focus on domestic manufacturing in Tennessee and Utah aligns with efforts to strengthen the U.S. supply chain for critical clean tech components.
- This deal supports job creation and enhances local economies, potentially leading to positive economic ripple effects.
From an investor's perspective, this agreement signals Excelsior's strong position in the renewable energy infrastructure sector. The emphasis on domestic manufacturing could provide a competitive advantage by reducing supply chain risks and potentially benefiting from government incentives promoting U.S.-made clean energy technologies.
However, investors should also consider potential challenges, such as the evolving regulatory landscape for energy storage and the need for significant capital investment to bring these projects to fruition. The success of this venture will depend on factors like project execution, market demand for energy storage and the overall growth of renewable energy adoption in the U.S.
The agreement between Excelsior Energy Capital and Fluence represents a strategic move to localize the supply chain for critical energy storage components. This decision is particularly noteworthy given the recent global supply chain disruptions that have affected various industries, including the renewable energy sector.
Key supply chain implications:
- Risk mitigation: By sourcing battery cells and modules domestically, Excelsior is reducing its exposure to international supply chain risks, including geopolitical tensions, trade barriers and logistical challenges.
- Improved logistics: Proximity of manufacturing to project sites can lead to reduced transportation costs and shorter lead times, potentially accelerating project timelines.
- Quality control: Closer oversight of manufacturing processes may result in better quality control and easier resolution of any issues that arise.
- Sustainability: Localized production can reduce the carbon footprint associated with transportation, aligning with broader sustainability goals.
For investors, this approach to supply chain management demonstrates Excelsior's proactive risk management strategy. It may lead to more predictable project timelines and costs, which could translate to more stable returns. However, it's important to note that domestic manufacturing may come with higher labor costs compared to some international alternatives, which could impact overall project economics.
The success of this localized supply chain strategy will be a key factor to watch, as it could set a precedent for other players in the renewable energy sector and potentially influence future policy decisions regarding domestic manufacturing incentives for clean energy technologies.
Excelsior Energy Capital's series of strategic moves in 2024, culminating in this 2.2 GWh agreement with Fluence, paints a picture of a company aggressively positioning itself in the rapidly evolving renewable energy and energy storage markets. Let's break down the implications:
- Portfolio diversification: The sale of 38 solar and solar-plus-storage projects from Fund I to BlackRock suggests a strategic rebalancing of assets, potentially freeing up capital for new ventures.
- Vertical integration: The launch of Lydian Energy for developing solar and battery storage projects indicates a move towards greater control over the project pipeline.
- Supply chain security: Agreements with both Heliene Inc. for PV modules and now Fluence for battery storage demonstrate a concerted effort to secure critical components from domestic sources.
This multifaceted approach positions Excelsior as a vertically integrated player in the renewable energy space, with control over project development, component sourcing and potentially operation. For investors, this strategy could lead to several benefits:
- Reduced dependency on external suppliers and potential for improved margins
- Greater ability to capitalize on government incentives for domestic manufacturing
- Enhanced capacity to scale operations in response to market demand
However, this integrated approach also comes with risks, including increased capital requirements and exposure to potential market fluctuations across multiple segments of the renewable energy value chain. Investors should closely monitor Excelsior's execution of this strategy, particularly its ability to manage costs and deliver projects on time in a rapidly changing regulatory and technological landscape.
Overall, Excelsior's moves suggest a bullish outlook on the U.S. renewable energy and storage markets, backed by significant commitments to domestic manufacturing and project development. This positions the company to potentially benefit from the ongoing energy transition, but success will depend on effective execution and favorable policy environments supporting clean energy deployment.
Commencing in 2025, the agreement will support domestic grid resilience, manufacturing capacity, and supply chain strength.
Under the agreement,
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“Fluence is proud to support
Supply chain disruptions from ongoing global conflicts, trade barriers, and other geopolitical uncertainties have impacted many industries, including the renewables sector. Energy storage is one of the key enabling technologies for ensuring a reliable power grid, so access to safe, high-quality, and low-risk energy supplies and products is critical.
“This agreement with Fluence will reduce battery supply risks for our projects, enabling us to fully realize the potential of our BESS investments and support the energy needs of local communities,” added Chris Frantz, Partner of Excelsior Energy Capital. “Together, we aim to leverage our combined expertise to drive sustainable growth and innovation in the energy sector.”
This agreement marks the latest announcement of Excelsior’s progress in 2024. In March, the firm announced the sale of a portfolio of 38 solar energy and solar plus storage projects from its Fund I portfolio to BlackRock’s Evergreen Infrastructure Partners Fund. In April,
About Excelsior Energy Capital
Excelsior Energy Capital is a renewable energy infrastructure fund focused on middle-market investments in wind, solar and battery storage plants, and businesses across
About Fluence
Fluence Energy, Inc. (Nasdaq: FLNC) is a global market leader in energy storage solutions and services, and optimization software for renewables and storage. With a presence in 47 markets globally, Fluence provides an ecosystem of offerings to drive the clean energy transition, including modular, scalable energy storage products, comprehensive service offerings, and AI-enabled optimization software for managing and optimizing renewables and storage from any provider. The Company is transforming the way we power our world by helping customers create more resilient and sustainable electric grids.
Disclosure: This material does not constitute an offer to sell or the solicitation of an offer to buy any securities. Securities managed by Excelsior Energy Capital (the “Firm”) are offered to select investors only by means of a complete offering memorandum and related subscription materials which contain significant additional information about the terms of an investment in the Fund (such documents, the “Offering Documents”). Any reproduction or other distribution of this material in whole or in part without the prior written consent of the Firm is prohibited. Opinions, estimates, and projections in this announcement constitute the current judgment of the Firm and are subject to change without notice.
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Source: Excelsior Energy Capital
FAQ
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