Repsol launches a bid to conquer the renewables business in the United States
Repsol has acquired 40% of Hecate Energy, a US company specialising in the development of photovoltaic and battery projects for energy storage. Thanks to this transaction, the Spanish company is making progress in its objectives of geographic diversification of its renewables business, complementing its capabilities, improving its portfolio and creating a solid platform with great growth potential.
The acquisition of a stake in Hecate Energy is Repsol's first foray into the US renewables market, one of the largest, most attractive and fastest-growing in the world in this sector. Once the conditions for this purchase have been met, Repsol will become a developer and future operator of renewable projects in the country, which has a favourable environment for this business.
Hecate Energy, based in Chicago, has an extensive portfolio of projects, totalling more than 40 gigawatts (GW). Of these, 16.8 GW correspond to photovoltaic projects and storage associated with these assets, which are at an advanced stage of development, and 4.3 GW belong to a battery platform for energy storage, called Hecate Grid.
The agreement will enable Repsol to become a major player in the US photovoltaic and battery sector through its participation in Hecate Energy's renewable project development business. In addition, the company will have the option to purchase the entire shareholding of Hecate Energy three years after the closing of this transaction.
The vast majority of Hecate Energy's assets are located in the ERCOT, WECC and PJM electricity markets, which are set to grow rapidly over the next decade due to the emission reduction targets of the states that comprise them. Its portfolio of PV projects under development is one of the largest in the country and is geographically diversified. Its management team has extensive experience and proven success in executing initiatives in the United States, which will complement Repsol's capabilities. Founded in 2012, the company has so far sold 2.6 GW of renewable projects.
The transaction represents a significant step towards achieving the goals of low-emission generation capacity and internationalisation of the low-emission generation business set out in Repsol's 2021-2025 Strategic Plan. The Plan sets the goal of reaching a generation capacity of 7.5 GW in 2025 and 15 GW in 2030 and becoming a competitive player in renewables with an international presence.
The United States is the second country in which Repsol is starting its renewable energy activity, after signing an agreement in July with the Ibereólica Renovables Group, which gives it access to a portfolio of projects in Chile that the company has in operation, construction or development of more than 1,600 MW until 2025 and the possibility of exceeding 2,600 MW by 2030, thanks to this alliance.
Hecate Energy's portfolio of photovoltaic projects under development is one of the largest in the United States and is located in the country's strategic electricity markets.
According to María Victoria Zingoni, Repsol's General Manager of Customer and Low Carbon Generation, "with this acquisition we are entering the US renewable market with the best possible partner and we are making progress towards our strategic goal of being a global low-emissions operator.
We continue to demonstrate our commitment to multi-energy and to take steps in the transformation of Repsol to become a zero net emissions company". David Tohir, president of Hecate Energy, said that with this transaction, "Hecate Energy continues to position itself as a leading developer of renewable projects in the United States". "We are proud to partner with a major global energy group that is leading the transition to a multi-energy future," he said.
