Qatar Investment Authority commits to invest dollar125M in Fluence
Published by : Industrial Automation
Investment supports transition to low-carbon future and values Fluence at more than dollar1 Billion.
Arlington/Doha/Munich, December 30, 2020 – Fluence, the leading global energy storage solutions provider, announced today that it has entered into a definitive agreement with the Qatar Investment Authority (QIA) pursuant to which QIA will commit to invest $125 million in Fluence through a private placement transaction. Consummation of the transaction is subject to the satisfaction of customary closing conditions, including regulatory clearances. QIA’s investment brings another strong financial partner to The AES Corporation (AES) and Siemens joint venture, further supporting Fluence’s mission to transform the way we power our world for a more sustainable future.
Fluence intends to use the net proceeds from the private placement to further accelerate development of its product offerings, particularly digital products, and deployment of existing products in more markets globally. AES and Siemens will remain major shareholders, each maintaining an approximately 44 percent stake following the completion of the transaction and will continue to support Fluence’s long-term growth. “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. “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.”
QIA is one of six founding members of the One Planet Sovereign Wealth Fund Initiative, which is building climate change into financial decision making, and the proposed investment further highlights QIA’s growing focus on the development of green technologies. Fluence’s mission and technology-driven offering aligns with QIA’s investment philosophy and QIA’s other recent green technology investments. With countries around the world setting increasingly ambitious targets to cut carbon emissions, Fluence is helping accelerate the adoption of renewables and is allowing utilities and power producers to incorporate renewables at scale. Its innovative technologies provide storage solutions for energy produced by wind farms and other renewable sources – a critical factor in the move towards a low-carbon economy.
“We are proud to partner with Fluence, which is at the forefront of the global drive to provide energy storage solutions,” said Mansoor bin Ebrahim Al-Mahmoud, QIA’s Chief Executive Officer. “We believe energy storage will play a key role in delivering cleaner, more sustainable and more resilient electric grids around the world. This investment further underpins our commitment to responsible investing for a low-carbon future.”
“Energy storage is playing a crucial role in enabling markets and organizations to achieve their goals for a carbon-free energy future,” said Andrés Gluski, AES President and Chief Executive Officer. “We are very pleased with Fluence’s success and today’s announcement is an important milestone toward maintaining Fluence’s global leadership in energy storage and achieving its growth potential.”
“Energy storage is a key pillar of the energy transition. Siemens has defined this as a significant long-term growth area,” said Matthias Rebellius, CEO of Siemens Smart Infrastructure and member of the Managing Board of Siemens AG. “QIA’s investment will support Fluence with its successful development in a dynamic market.”
The Fluence team has been a driving force in the global energy storage industry for more than a decade, repeatedly opening new markets and pioneering new applications. This summer, the company announced its sixth-generation Tech Stack, comprised of integrated hardware, operating software and digital intelligence engines. Built on 12 years of proprietary operating data from systems in the field, the Tech Stack enables faster deployment of standardized, modular systems, lower balance of system costs, and highly customizable solutions to meet individual customer needs. In October, Fluence announced its acquisition of AMS’ AI-driven software and digital intelligence platform for renewables and energy storage, which can significantly improve revenue of energy storage assets in wholesale markets, and plans to accelerate investment in its digital differentiation.