LSIS, a South Korean power and energy solution provider, has acquired an energy storage system unit from US-based Parker Hannifin to expand its presence in the global smart energy market, it announced Wednesday. Citing confidentiality, the company did not disclose the deal value.
Parker Hannifin is a leader in motion and control technologies and its ESS business, now acquired by LSIS, is the largest in the US and holds top-level ESS-related technologies, said officials in Anyang, Gyeonggi Province. Energy storage systems save energy for the efficient distribution of power, storing electricity during nighttime for daytime use. Parker Hannifin started ESS business in 2007.
(From left) Parker Hannifin Vice President Paul Horvat, LS Energy Solutions President Jim Hoelscher and Oh Jae-seok, executive vice president of LSIS Power Solution Business Group, pose after signing a deal at LS Energy Solutions in Charlottesville, North Carolina. (LSIS)
The deal allows LSIS to create a new subsidiary in the US, named LS Energy Solutions.
The entire operation of Parker Hannifin’s energy grid division will be transferred to LS Energy Solutions.
The deal elevates LSIS’ position in the global ESS business with business reference of providing ESS capable of securing 700 megawatts, the greatest capacity in the world.
LS Energy Solutions will also be able to utilize Parker Hannifin’s global sales network, production capability and human resources, the company added.
“With the deal, we have secured a base station for global expansion by combining LSIS’ capabilities in developing innovative smart energy technologies and LS Energy Solution’s customer bases and technological know-how,” said Koo Ja-kyun, chairman and CEO of LSIS.
“Making a pre-emptive investment is to achieve our long-term goal of becoming a global player that not only takes an advantageous position in the market, but also leads industrial trends of the future.”
By 2030, the storage capacity of ESS around the world will surge to around 125 gigawatts, a 66-fold increase from that of 2016, the chairman said. Eight countries, including South Korea, the US and China, will secure 70 percent of ESS capacity.
The size of ESS markets in the US and Europe is expected to grow from $1.6 billion in 2016 to $18.4 billion in 2025, according to the company.
By Cho Chung-un (firstname.lastname@example.org