Qatar Investment Authority Energy Storage Systems Integrator and Power Management Tech is investing $ 125 million in developer, Fluence, In a deal that would give the company more than $ 1 billion in value.
Joint venture between American independent power producer, AES Corp and German Industrial Group Siemens, The transaction was already valued at $ 900 million prior to the transaction, according to Merck Volek, vice president of strategy and partnerships at Flance.
With the new cash, Fluence will look to develop and acquire software and services that can use the company’s offerings between utilities and independent power project developers.
Volk said it may not take long for the company to seek additional liquidity from the public markets. He said that QIA is already supporting the battery company QuantumScape, Which was acquired at the end of November by a special purpose takeover company and whose shares have soared a meteoric rise so far.
After QIA investment, AES and Siemens will continue to be majority shareholders. Each investment will hold a 44 percent stake in the company.
“We believe that the global problem of climate change can only be tackled by leveraging the combined capabilities of technologists and investors around the world,” Fluence’s chief executive, Manuel Perez Dubuque, said in a statement. “We see energy storage as the linchpin of a carbonated grid and the addition of QIA to our international shareholder base to rapidly innovate Fluence and address the vast global market for large-scale battery-based energy storage Will be allowed. ”
One of the six founding members of the One Planet Sovereign Wealth Fund Initiative, QIA is a multi-billion dollar investment vehicle with significant reserves of capital to continue its support of climate tech companies such as Fluence.
According to Welleck, Florence has already deployed approximately 5 gigawatts of energy storage and management systems to a wide array of customers.
And while Volk said that Florence sees itself and its energy storage business as a key component of global decarbonization that needs to deal with climate change, electric storage is not the only technology that needs it.
It is difficult to look at the energy market and look at a technology and saying that one technology is going to solve everything.
He said the company’s role is to ensure that the battery technology Fluence can be deployed and integrated with other technologies needed to provide the industry and society with the power it needs. “We want to specialize in battery-based storage,” Volek said. “At the same time we invest significantly on the digital side to expand our remittance capabilities beyond storage.”
This, he said, could mean collaborating with other energy suppliers (such as developers of hydrogen fuel projects) in the future.
Speaking of the company’s ultimate goal, Volk said, “We want to master Energy Peace on the battery side.”
This goal exposes the company to Elon Musk’s collision course with the energy business being built by Tesla.
Fluence currently has a billion-dollar valuation and a $ 36.6 billion market cap, which leads QuantumScape to explain why Tesla can be considered a more than $ 650 billion company.