Fluence, the global energy storage solutions joint venture between Siemens and AES, announced 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.
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% stake following the completion of the transaction and will continue to support Fluence’s long-term growth.
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.
Fluence is helping accelerate the adoption of renewables and is allowing utilities and power producers to incorporate renewables at scale. Its technologies provide storage solutions for energy produced by wind farms and other renewable sources.
The Fluence team has been 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, comprising 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.