REV Renewables gains backing from South Korean conglomerate

The deal will include a $300 million to $400 million investment to support REV’s portfolio of renewable power and energy storage projects.

October 18, 2021 David Wagman

Image: iStock/Hannon Armstrong

LS Power said that South Korea-based SK E&S Co. will become an equity investor in REV Renewables, an LS Power company focused on the development, acquisition, and operation of renewables and energy storage.

The deal will include a $300 million to $400 million investment from SK E&S to support REV’s portfolio of renewable power and energy storage projects.

SK E&S will receive an ownership stake in the renewables and energy storage platform and will hold one seat on REV’s board of directors. The investment is subject to regulatory approvals and other closing conditions. In addition, the two agreed to work together to identify and evaluate potential opportunities across clean energy technologies and services.

LS Power announced the formation of REV Renewables in August with a 2.4 GW portfolio of operating storage, solar, and wind projects. The portfolio includes a California-based battery storage portfolio (290 MW) that includes Gateway (250 MW); a non-utility pumped storage hydro portfolio in the mid-Atlantic region of PJM (1,620 MW); wind assets (132 MW); and a portfolio of 25 solar power facilities spanning 14 states (467 MWdc/365MWac).

SK E&S has made other investments in the U.S. in recent years which include the 2019 acquisition of a behind-the-meter energy storage portfolio in California; a 2020 investment in Sunrun; and 2021 investments in hydrogen technology company Plug Power and battery storage developer, owner, and operator Key Capture Energy

SK E&S was established in 1999 and is based in Seoul. It is unit of SK Group, one of the country’s top business conglomerates with about $106 billion in annual global revenue and more than 110,000 employees worldwide.

In addition to REV Renewables, LS Power’s energy platform interests include EVgo, Endurant Energy, CPower Energy Management, Primary Renewable Fuels, Rise Light & Power, and LS Power Transmission.

Transaction advisors included Morgan Stanley & Co. LLC and RBC Capital Markets, LLC as financial advisors to LS Power and REV Renewables, and BofA Securities, Inc. as financial advisor to SK E&S. Legal advisors included Willkie Farr & Gallagher LLP for LS Power and REV, and O’Melveny & Myers LLP for SK E&S.

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