The Qatar Investment Authority is investing $125 million into power storage methods integrator and energy administration tech developer, Fluence, in a deal that may worth the corporate at over $1 billion.
The three way partnership between the American impartial energy producer, AES Corp. and the German industrial conglomerate Siemens, was already price $900 million previous to the transaction, in accordance with Marek Wolek, the vice chairman of technique and partnerships at Fluence.
With the brand new money, Fluence will look to develop and purchase software program and companies that may develop the corporate’s choices to its core shoppers amongst utilities and impartial energy mission builders, Wolek mentioned.
And it won’t be too lengthy earlier than the corporate seeks further liquidity from the general public markets, Wolek mentioned. He famous that the QIA is already backing the battery firm QuantumScape, which was acquired by a particular objective acquisition firm in late November and whose shares have been on a meteoric rise ever since.
After the QIA funding, AES and Siemens will stay majority shareholders. Every will maintain a 44 % stake within the firm after the funding.
“We consider the worldwide drawback of local weather change can solely be tackled by leveraging the mixed capabilities of technologists and buyers from round the world,” mentioned Manuel Perez Dubuc, Fluence’s Chief Govt Officer, in an announcement. “We see power storage because the linchpin of a decarbonized grid and including QIA to our worldwide shareholder base will permit Fluence to innovate even sooner and tackle the large international marketplace for large-scale battery-based power storage.”
Considered one of six founding members of the One Planet Sovereign Wealth Fund Initiative, QIA is a multi-billion greenback funding car that has important shops of capital to proceed its assist of local weather tech firms like Fluence.
Fluence has already deployed roughly 5 gigawatts of power storage and administration methods to a wide selection of shoppers, in accordance with Wolek.
And whereas Wolek mentioned Fluence sees itself and its power storage enterprise as a key part of the worldwide decarbonization which must happen to fight local weather change, electrical storage isn’t the one expertise that’s wanted.
It’s troublesome trying on the power market and one expertise and saying that one expertise goes to unravel every thing,” mentioned Wolek.
Fairly, the corporate’s position is to make sure that the battery expertise Fluence is deploying will be built-in with the opposite applied sciences required to supply trade and society with the ability it wants, he mentioned. “We need to completely be the specialists on battery-based storage,” Wolek mentioned. “On the similar time we do make investments fairly a bit on the digital aspect to develop our dispatch capabilities past storage.”
That would imply teaming up with different power suppliers (like builders of hydrogen gas proejcts) sooner or later, he mentioned.
“We need to grasp the power piece on the battery aspect,” Wolek mentioned of the corporate’s final purpose.
That purpose places the corporate on one thing of a collision course with the power enterprise being constructed by Elon Musk’s Tesla.
The billion-dollar valuation that Fluence at present enjoys and the $36.6 billion market cap that QuantumScape has goes a way towards explaining why Tesla will be thought of to be an organization price over $650 billion.