E.ON to acquire RWE’s 76.8% stake in innogy
The German energy firm, E.ON, has reached an agreement with German utility, RWE, to acquire its 76.8% stake in innogy SE.
innogy SE, which has been valued at €22bn (US$27.1bn) was created from RWE’s renewables, grid, and energy sectors in 2015.
E.ON will purchase the stake in the German subsidiary through an exchange of assets and participations.
The deal, which is still awaiting approval from E.ON and RWE’s boards, will see the energy firm exchanging 16.67% shares in E.ON SE for RWE’s majority share in innogy SE.
This will see E.ON transfer most of its renewable business – the deal seeks to transform Germany’s current energy industry, aiding utilities transition towards renewables.
E.ON is also expected to make a voluntary takeover offer of €40 per share in cash to innogy SE shareholders.
“This gives us two powerful companies in the international marketplace,” stated Armin Laschet, State Premier of North Rhine-Westphalia, where all three firms are based, Bloomberg reported.
Following the announcement,
Although the deal is worth approximately €22bn, it is anticipated that it could almost double with the addition of debt and enterprise value, with Bloomberg stating it could reach €43bn ($53bn).
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.