KX Power, a London-based battery storage developer announces it is signing a joint venture with BlackRock Real Assets to develop, build and operate battery storage projects across the UK. The investment is being made by the BlackRock Global Renewable Power III fund and will support the build out of up to 2 Gigawatt hours of battery storage assets across the UK.
Battery energy storage systems assets’ capacity to resolve the intermittency of natural resources, such as wind or solar power, makes them complementary to other forms of renewable energy infrastructure, and integral to accelerating the rollout of homegrown renewable energy across the UK, in line with the country’s 2050 Net-Zero strategy. BlackRock’s initial commitment to the joint venture will enable the buildout of enough renewable energy projects to power over two million homes annually, and to remove 16 million tons of CO2 over the lifetime of the projects.
This investment is GRP III’s first into the UK’s battery storage market and brings together BlackRock’s infrastructure expertise and KXP’s extensive experience developing BESS assets to create a portfolio of advanced energy storage systems supporting the UK’s energy transition, and in tandem, increased energy security.
Vanessa Shia, Head of Private Markets at London CIV said: ‘Our investment in UK battery energy storage assets across our infrastructure funds is a great opportunity for London CIV to contribute towards the UK’s energy transition. It is key to supporting the overall growth of the renewable energy sector and we are proud to be partnering with key players in this space who can help us deliver on our 2040 net zero target.’
David Giordano, Managing Director, Global Head of Renewable Power at BlackRock commented: ‘GRP III invests in the climate infrastructure of the future. With our JV investment in KXP, we are delighted to be driving the development and expansion of the UK’s battery storage market. On behalf of our clients, we see vast opportunity in the development of a sophisticated network of battery storage assets across the UK and in other regions across the globe to facilitate the transition towards a green energy future.’
BlackRock’s Global Renewable Power platform has invested in over 400 wind, solar and other climate infrastructure projects across 17 countries in 4 continents. The Global Renewable Power team consists of 66 professionals, with an average of over 20 years of investment and technical expertise. The team now manages over US$9.7 billion of client capital, with an emphasis on globally diversified portfolios, measurable climate impact and differentiated sourcing.
Dr. Zhe Zhang, CEO of KXP, commented: ‘Our mission is to enable more and more adoption of UK homegrown green power, as embraced by the UK Administration’s Net Zero Strategy and by local councils. Combining KXP’s on-the-ground project development skills and power trading expertise with BlackRock’s knowledge and track record in climate infrastructure, I am certain KXP will become a significant player in the renewable energy market in the UK. Today’s investment is a testament to investors’ strong appetite for renewable energy and accelerates the UK’s growth towards innovative, sustainable and inclusive energy.’
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