Fluence, the Energy Storage Systems Developer, is Now Worth Over $1 Billion After QIA Investment

on January 4, 2021

The Qatar Investment Authority  is investing $125 million into energy storage systems integrator and power management tech developer, Fluence, in a deal that will value the company at over $1 billion.

The joint venture between the American independent power producer, AES Corp. and the German industrial conglomerate Siemens,  was already worth $900 million prior to the transaction, according to Marek Wolek, the vice president of strategy and partnerships at Fluence.

With the new cash, Fluence will look to develop and acquire software and services that can expand the company’s offerings to its core clients among utilities and independent power project developers, Wolek said.

And it might not be too long before the company seeks additional liquidity from the public markets, Wolek said. He noted that the QIA is already backing the battery company QuantumScape,  which was acquired by a special purpose acquisition company in late November and whose shares have been on a meteoric rise ever since.

After the QIA investment, AES and Siemens will remain majority shareholders. Each will hold a 44% stake in the company after the investment.

“We believe the global problem of climate change can only be tackled by leveraging the combined capabilities of technologists and investors from around the world,” said Manuel Perez Dubuc, Fluence’s chief executive officer, in a statement. “We see  energy storage as the linchpin of a decarbonized grid and adding QIA to our international shareholder base will allow Fluence to innovate even faster and address the enormous global market for large-scale battery-based energy storage.” 

One of six founding members of the One Planet Sovereign Wealth Fund Initiative, QIA is a multibillion dollar investment vehicle that has significant stores of capital to continue its support of climate tech companies like Fluence.

Fluence has already deployed roughly five gigawatts of energy storage and management systems to a wide array of customers, according to Wolek.

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Fractal Energy Storage ConsultantsFluence, the Energy Storage Systems Developer, is Now Worth Over $1 Billion After QIA Investment

Is Lithium-Ion the Best Way to Power a Renewable Energy Future?

on January 4, 2021

Venture outside of Las Vegas and Reno and into the high desert, and you’ll see a whole lot of wide, open space. It’s mostly full of sagebrush and desert grasses. But, in the Silver Peak Range of central Nevada, something else is buried underneath the ancient volcanic rock: lithium.

The metallic element has been used for decades in everything from antidepressant medications to ceramics. Now it’s being harvested in massive quantities, primarily for electric vehicles.

Lithium-ion batteries are helping to pave the way toward a renewable energy future. The technology powers our laptops, smartphones and electric vehicles. But it’s also had its share of well-publicized safety issues. Some say it might not be the answer to our bigger energy needs.

“It poses additional risks because it stores more energy. The energy density of lithium-ion is higher than most other batteries,” said Andrew Klock of the National Fire Protection Association.

Klock said even with some famous lithium-ion battery explosions, he’s not that concerned about the safety of electric vehicles. That’s because EVs and other devices have battery management systems that alert users when something’s wrong.

“My Android the other day told me I’ve got too many apps open. It’s overheating. ‘Shut them down immediately,’ ” Klock said. “So that’s a good management system, right?”

For one battery cell, sure. But Donald Sadoway, professor of materials science and engineering at MIT, said it’s hard to keep large-scale systems, like those that store energy from solar or wind facilities, cool.

“The lithium ion requires safety measures to put in play, so that you don’t get thermal runaway, which could lead ultimately to fire,” Sadoway said.

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Fractal Energy Storage ConsultantsIs Lithium-Ion the Best Way to Power a Renewable Energy Future?