Siemens Charges Forward with Heliox Acquisition while Austria Fuels Green Transportation with EUR 28M Funding
Market Impact Factor: High
Ijlal Khan | Analyst I – EVSE
Siemens has signed a deal to acquire Heliox, a technology leader in fast charging solutions based in the Netherlands that serves e-Bus and e-Truck fleets as well as passenger cars. The purchase would enhance Siemens' existing eMobility charging offerings by adding products and solutions for DC Fast Charging oriented towards eBus and eTruck fleets. One of the most important products, Heliox has launched is its Megawatt Charging System (MCS) and its bidirectional V2X chargers. Both of these entities are aspects of promising growth in the EV industry at the very moment. Siemens' market reach will expand as a result of Heliox's products, particularly in Europe and North America, and its power electronics capabilities will improve. The transaction requires standard regulatory approval. Heliox is well-known in Europe, notably in nations such as the Netherlands and Germany. Siemens might take advantage of Heliox's local expertise and connections to extend its footprint and client base in these locations.
Heliox's Megawatt Charging Systems (MCS) has the potential of a promising product in the market, therefore Siemens' acquisition might be beneficial. MCS addresses a major issue with eTrucks by providing an ultra-fast charging process. MCS alters the charging behavior of large vehicles such as heavy goods trucks (HGVs) and eTrucks. It has an incredible 3.75 MW (3750kW) Direct Current (DC) output. This innovative concept is consistent with Siemens' long-term strategy to expand its e-mobility business. MCS offers a unique approach to the charging dilemma, giving Siemens an edge in offering complete solutions for sustainable transportation.
Furthermore, the collaboration between Heliox and Fermata Energy for taking forward Heliox's V2X bidirectional charger reveals the other important aspect that could further strengthen Siemens' position in the e-mobility and energy sectors as a result of this acquisition. The V2X technology is the go-to resort for every company due to ever ever-growing transition towards electrification and thus this acquisition could prove fruitful for Siemens.
Also, The Mobility House and Heliox collaborated in 2021 to create a strong charging and energy management solution for large fleets of e-buses. When Heliox's smart chargers are used in conjunction with The Mobility House's ChargePilot, charging schedules are optimized, energy costs are reduced, and load peaks are reduced. This unified strategy increases the performance of e-bus installations, which aligns with Siemens' mission of providing comprehensive and long-term e-mobility solutions.
Another important mention would be the partnership of Cummins and Heliox back in May 2023. It happened with the intent to sell and service EV chargers in North America. The partnership announced two new fast-charging solutions—mobile and stationary DC chargers—designed for fleets transitioning to battery-electric vehicles. This happened with the aim to grow alongside the US government targets by helping the fleet with charging infrastructure. So, Siemen's acquisition of Heliox would cherish all of its products and notable collaborations, that would eventually help it grow its business more.
Heliox has extensive experience in developing high-power charging systems for electric buses and other commercial vehicles. This expertise is critical since the number of electric fleets that require quick and efficient charging infrastructure is growing. Heliox's technology incorporates high-power charging methods that can significantly reduce the time it takes to charge an electric car. Siemens already possesses smart grid and energy management technologies that, when paired with Heliox's smart charging solutions, could result in a more efficient and cost-effective charging infrastructure. Siemens would be in a better position to offer solutions that account for future regulatory changes. The purchase could be viewed as a wise strategy to capitalize on a developing industry trend. Siemens already has a large number of clients who employ electric buses and commercial vehicles in the transportation sector. Siemens may leverage Heliox's existing alliances and engagements with local organizations and governments to facilitate relationship-building and contract negotiations in new markets. Siemens doesn't have to spend time and money building a reputation and market presence from scratch. Instead, it can use Heliox's current operations to extend its presence bringing itself growth.
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Austria's 2nd Round: EUR 28M Funding for Zero-Emission Vehicles Via Enin
Market Impact Factor: Medium
Saad Siddique | Junior Analyst - COHV
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The Austrian Ministry for Climate Action has announced the second round of funding for the 'Emission-free Commercial Vehicles and Infrastructure' program (ENIN). With a significant funding pool of EUR 28 million, the application period extends until October 11, 2023. Building on the success of the previous round, ENIN continues to play a pivotal role in offering essential financial support to companies on adopting zero-emission commercial vehicles and infrastructure. Under this program, companies can procure ZEVs in class N1, N2, and N3, including Vans and Trucks, which will be eligible for the tax credit. Moreover, special vehicles for the first time in class N1-N3 have been subsidized in Austria under this program. In other words, this round emphasizes the adoption of emission-free trucks tailored for freight transport. In the initial round, which secured a substantial EUR 122 million, a total of 1685 zero-emission vehicles were introduced onto the roads. The first project of the second round opened on August 9, has already been granted. The VOA association, Public Waste Management Company, received EUR 8.2 million of funding to produce BEV garbage trucks. VOA is hopeful that with an average daily mileage of 85 kilometers, BEV technology is suited for garbage trucks and is hopeful to deploy them on the road soon. Other than that, investments in charging stations have also been made. Austrian Climate Protection Minister Leonore mentioned that they were overwhelmed with the large number of quality projects from the communal and logistics sectors. It indicates the company's commitment to achieving net zero alongside the country's goals. However, Austria's pursuit of a zero-emission future is in contrast to the neighboring nations such as Germany, Italy, and the Czech Republic. These countries have opposed the viability of the proposed EU ban on internal combustion engine (ICE) vehicle sales by 2035, calling it unrealistic. Austria, on the other hand, is hopeful of achieving that goal and the second ENIN funding round serves as a testament to its dedication. The zero-emission trucks industry is relatively nascent as opposed to buses and LCVs but this program with its focus on electric trucks shows its vision of electrifying this nascent fleet as well. Despite the current electrification of trucks in Austria hovering around a modest 1% as of 2022, the funding paints a hopeful trajectory. But the goal to comply with the EU ICE ban 2035 still seems optimistic.
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ENGIE Strengthens Its U.S. Operations with Broad Reach Power Acquisition
Market Impact Factor: High
Abdullah Bin Kamran | Analyst I - Energy Storage
French multinational utility ENGIE has made a significant move to bolster its presence in the rapidly expanding battery energy storage system (BESS) market in the United States. The company has announced its acquisition of the BESS business of Broad Reach Power, a Houston-based renewables company, in a deal valued at over USD 1 billion in equity. ENGIE is set to acquire the whole of the BESS business of Broad Reach Power from private equity funds owned by investment companies EnCap and Apollo.
The transaction encompasses a diverse portfolio of BESS assets, including 350MW of operational facilities, 880MW of assets under construction, expected to be commissioned by the end of 2024, 1.7GW of advanced-stage projects, and a substantial pipeline of early-stage projects. These assets are strategically located in key U.S. states such as Texas, California, and central regions.
The acquisition, though comprehensive, will not encompass a 1.8GW portfolio of solar and wind projects. Additionally, it will exclude approximately 4GWh worth of battery energy storage system (BESS) assets currently in development across three states in the U.S. Mountain West region, namely Wyoming, Utah, and Montana. These BESS assets are expected to commence commercial operations at various points from later in 2023 to the fourth quarter of 2026.
The acquisition aligns seamlessly with ENGIE's overarching goal of achieving a global battery capacity of 10GW by 2030. Additionally, it solidifies ENGIE's position as a major player in the U.S. energy transition landscape. The company already boasts significant holdings in renewable assets, with 5GW in operation as of the end of 2022, in addition to its battery storage capabilities and energy management platform.
ENGIE's strategic move comes as a response to the increasing need for flexibility in the energy sector, driven by the rising share of renewable energy sources in the energy mix. This acquisition positions ENGIE to provide uninterrupted, decarbonized electricity solutions to its customers in the U.S.
In 2022, EnCap also divested its ownership of Jupiter Power, a U.S.-based developer primarily concentrated on the BESS market, with a strong emphasis on owning and managing assets within Texas. Jupiter Power was subsequently acquired by the asset management group BlackRock. This shows a trend of divestment of energy storage assets by EnCap.
The completion of this transaction is expected in the fourth quarter of 2023, pending approvals from energy regulatory authorities. This acquisition marks a significant step forward for ENGIE as it continues to expand its influence in the U.S. energy landscape.
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