Private equity firm NGP Energy Capital Management has committed $200m to back US energy storage developer Liminal Energy, as rising power demand from data centres and artificial intelligence strains electricity grids, according to a report by Bloomberg.
Liminal Energy, founded late last year by former UBS Asset Management executives Ken-Ichi Hino and Mark Saunders, plans to use the capital to develop utility-scale battery storage projects across the US. The company will pursue a range of project sizes and investment structures, focusing primarily on stand-alone battery assets, while also considering hybrid developments alongside renewable and gas-fired generation.
NGP said it had spent three years searching for a suitable energy storage platform to support. The firm, which has historically invested in oil and gas, has been increasing its exposure to the power and energy transition sectors, according to Sam Stoutner, co-head of energy transition at the firm.
Liminal said demand growth from data centres is creating long-term tailwinds for battery storage, with assets helping to manage peak demand, stabilise grids, and accelerate grid connections.
