TotalEnergies has agreed to acquire Kyon Energy, a leading developer of battery storage systems in Germany. The deal includes an upfront payment of €90 million, with additional earn out payments tied to development targets. Kyon Energy has already developed 770 MW of projects, with 120 MW in operation, 350 MW under construction, and 300 MW ready to build. TotalEnergies plans to develop, build, and operate these projects as part of its integrated power strategy. The acquisition strengthens TotalEnergies' presence in the German electricity market and supports the expansion of renewable energies in the country. The deal is subject to regulatory approval.
Paris – As part of its development as an integrated power player in Germany, TotalEnergies has signed an agreement to acquire from its three founders the entire share capital of Kyon Energy, one of the leading developers of battery storage systems in the country. The consideration consists of a €90 million upfront payment, plus some earn out payments linked to the achievement of development targets.
Since its creation in 2021, Kyon Energy has developed 770 MW of projects with very competitive connection costs of which 120 MW are already in operation, 350 MW are under construction and 300 MW are ready to build. In addition, Kyon Energy’s portfolio includes a 2 GW pipeline of advanced-stage projects.
Thanks to the expertise of Kyon Energy’s management and employees, TotalEnergies will develop, build, and operate those projects, mainly located in the North of Germany, as part of its integrated power strategy. This new acquisition follows 2023 successes in the country – including the award of a maritime concession to develop a 3 GW offshore wind farm, the acquisition of the renewable energy aggregator Quadra Energy and the award of a contract to install and operate 1,100 high-power charge points for electric vehicles – and is further strengthening TotalEnergies ability to offer reliable and competitive power to its German customers.
The battery storage system will contribute to the resilience of the German electricity system, help solving congestion problems or providing additional flexibility to the German power grid, and ultimately support the rapid expansion of renewable energies in Germany
"I would like to welcome the Kyon Energy teams to TotalEnergies. The acquisition of this company, one of the leaders in its market, is a key element in our presence in the German electricity market, which is the largest in Europe,” said Stéphane Michel, President Gas, Renewables & Power at TotalEnergies. "This acquisition will enable us to accelerate the development of our Integrated Power activities in Germany, both in production, trading, aggregation and marketing of low-carbon electricity available 24 hours a day. It also contributes to our profitability target for this business segment of 12% ROACE by 2028."
"This partnership with TotalEnergies represents a key moment for Kyon Energy, as we aim to become one of Europe's leading flexibility providers. By joining forces, we are consolidating our position in the German electricity market, and thus making a direct contribution to its transition to a more sustainable system", said Adrian Kapsalis, CEO of Kyon Energy.
About Kyon Energy
Kyon Energy is a German project development company focusing on large-scale battery storage systems.With 121 MW of battery storage systems successfully developed and sold with partners, a further 679 MW of storage projects in the ready-to-build stage and a current project pipeline of over 7 GW, Kyon Energy is one of the market leaders in Germany. The company has a particular focus on the development and optimization of multi-use strategies, combined with in-depth expertise in project development and management as well as the regulation of large-scale battery storage systems. Through its battery storage systems, Kyon Energy is a driver of the energy transition and strives for a world powered by renewable, sustainable and independent energy.
The acquisition remains subject to authorization by the relevant authorities.