EQT Expands its Portfolio with the Acquisition of Scale Microgrids

In a bold move, EQT Transition Infrastructure has announced its agreement to acquire Scale Microgrids, a prominent player in the distributed energy sector. This acquisition is not just another deal; it is a strategic step towards achieving EQT's long-term vision for accelerating the global transition to clean energy and bolster a circular economy. This marks EQT's second major investment related to sustainable energy in just over a month, following their initial investment in juniz Energy, a battery energy storage developer.

Scale Microgrids: An Overview

Operating from Ridgewood, New Jersey, Scale Microgrids stands out as a vertically integrated energy company dedicated to designing, constructing, financing, owning, and operating microgrids and other distributed energy resources. The company caters to a diverse clientele, including commercial and industrial sectors, electric vehicle fleets, data centers, universities, hospitals, and agricultural communities. At present, Scale boasts an impressive portfolio of approximately 250 Megawatts (MW) of operational and in-development assets, with a staggering 2.5 Gigawatts (GW) in its near-term pipeline.

The company utilizes an array of innovative technologies such as solar energy, battery storage, natural gas generators, and fuel cells to create a dynamic, robust power infrastructure across North America. This makes it one of the largest and most influential microgrid operators in the United States.

A Commitment to Growth

EQT’s acquisition of Scale Microgrids signals a strong commitment to fostering growth and innovation in the renewable energy ecosystem. Jan Vesely, Partner and Head of EQT Transition Infrastructure, expressed enthusiasm regarding this acquisition, stating that it emphasizes EQT's pledge to foster global energy transitions and cater to North America's increasing electricity demand. The partnership is seen as an opportunity to rapidly elevate Scale’s growth trajectory, establishing the company as a leader in the vertically integrated energy sector.

Ryan Goodman, CEO of Scale Microgrids, echoed this sentiment, noting that this deal marks the onset of an exhilarating new chapter for Scale. With EQT’s ample resources and expertise, Scale aims to further its mission of providing sustainable energy solutions while simultaneously advancing the decarbonization efforts of its customers. Goodman expressed his gratitude towards previous shareholders, such as Warburg Pincus, acknowledging their pivotal role in the company’s growth thus far.

Addressing Modern Energy Challenges

Scale Microgrids plays a pivotal role in mitigating several urgent grid challenges like the surging electricity demands from data centers, fleet electrification, and frequent grid outages. The company’s assets enhance the resilience of power systems, offering quicker access to electricity compared to lengthy interconnection waiting times. Additionally, these solutions provide substantial cost savings and stable energy options, which align with the sustainability goals of its clientele.

The expert team at Scale has built an impressive reputation over the past five years, significantly increasing their asset portfolio to nearly 3 GW concerning operational and near-term projects. This growth can be attributed to strategic financial maneuvers which have funded ongoing development and expansion efforts.

A Bright Future with EQT

With EQT’s significant capital investments and strategic support, Scale Microgrids is poised for continued success in the growing clean energy market. EQT aims to channel resources towards improving Scale's project execution, commercial operations, and software systems. This partnership aims to transition Scale into a leading energy services provider, focusing on high-growth sectors while emphasizing multi-technology solutions.

In conclusion, EQT's acquisition of Scale Microgrids not only represents a milestone for both entities but serves as a beacon for the wider energy industry, highlighting the increasing importance of innovative, sustainable practices in meeting today's energy demands. This acquisition stands as a pivotal step towards creating a cleaner, more resilient energy future for all stakeholders involved.