Repsol enters the U.S. renewables market
Repsol has signed an agreement to acquire 40% of Hecate Energy, a U.S. company specializing in the development of PV solar and battery projects for energy storage. Thanks to this transaction, the Spanish multi-energy company advances its objectives of geographic diversification of its renewables business, complementing its capabilities, improving its portfolio, and adding a solid platform with strong growth potential.
The acquisition of a stake in Hecate Energy is Repsol’s first foray into the U.S. renewables market, one of the world’s largest, most attractive, and fastest-growing. Once the conditions for this purchase have been met, Repsol will become a developer and future operator of renewable projects in a country with a favorable business environment in this sector.
Hecate Energy, based in Chicago, has an extensive portfolio of renewable projects totaling more than 40 gigawatts (GW). Of these, 16.8 GW are PV solar projects and energy storage associated with these assets, all at advanced stages of development. The company also participates in Hecate Grid, a battery platform for energy storage with a capacity of 4.3 GW.
The agreement will make Repsol a significant player in the US solar and battery storage development market through its participation in Hecate Energy’s renewable project development business. The company will also have the option of acquiring Hecate Energy’s outstanding shares three years after the closing of this transaction.
Most of Hecate Energy’s assets are located in the U.S. electricity markets ERCOT, WECC, and PJM that are projected to grow substantially in the coming decade due to the emissions reduction objectives set in the respective states. Its portfolio of PV solar projects under development is one of the largest in the country, and it is geographically diversified. Its management team has extensive experience and a successful track record in project development in the US, which will complement Repsol’s capabilities in this area. Founded in 2012, the company has so far sold 2.6 GW of renewable projects.
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