LS Power takes over EVgo
EVgo, one of the largest fast-charging networks for electric cars in the USA, has a new owner: LS Power just took over the company from Vision Ridge Partners. EVgo will remain as an independent brand under the umbrella of LS Power. The transaction is expected to close in early 2020, financial details have not been disclosed.
LS Power describes itself as a company specializing in the development, operation and investment in power generation, transmission and infrastructure. With EVgo, the energy infrastructure company active in North America has now acquired one of the largest private operators of charging stations in the USA.
EVgo claims to operate more than 1,250 fast chargers at over 750 locations spread across 34 US states. Since last year, the charging points have been operated exclusively with green electricity. This is said to have avoided 17,000 tons of CO2 emissions.
“This acquisition provides LS Power the opportunity to support the continued expansion of EVgo’s unmatched charging infrastructure platform, already present in 66 metropolitan markets, and invest further in the company’s growth as the market for EVs continues to expand,” said David Nanus, Co-Head of Private Equity at LS Power. However, he left open whether the support will be exclusively monetary or also technical.
No concrete synergies are mentioned in EVgo’s announcement, but according to Electrek, LS Power announced in April 2019 that it would build 14 battery storage systems at fast-charging stations to avoid peaks in demand. In addition, a larger stationary energy storage facility is to be built near New York next to a natural gas power plant.
Such buffer storage facilities and the know-how in grid connection and energy transmission could also help EVgo to build charging parks faster or cheaper. “EVgo intends to accelerate our growth to serve all EV drivers, and we are truly excited to work with an investor with the history, experience and expertise of LS Power,” says Cathy Zoi, CEO of EVgo.