South Korean conglomerate SK Group has launched a process to explore a sale or capital raise for US battery storage developer Key Capture Energy, said two sources familiar with the situation.

SK Group sent marketing material in mid-April to potential suitors for the Albany, New York-based company, the sources said. Nomura Greentech is advising on the review, as reported.

SK Group, through subsidiary SK E&S, acquired Key Capture from Vision Ridge Partners in a 2021 deal. SK E&S later merged with SK Innovation to form SK Innovation E&S. PassKey, a US-based unit of SK Innovation E&S, is the arm responsible for the Key Capture investment.

A spokesperson for SK Group acknowledged that the firm is exploring alternatives for Key Capture but did not comment on the process timing or the advisor.

“PassKey is exploring various strategic options to bring in a financial partner that will work alongside the PassKey team to support Key Capture Energy’s growth in markets across the US,” the spokesperson said. “We remain committed to Key Capture Energy’s success as we expand battery energy storage to strengthen grid reliability and resilience.”

Nomura declined to comment.

Launched in 2016, Key Capture was an early entrant into the US battery sector and has around 623 MW operating assets and an additional 8 GW in development, according to the company’s website.

Battery of opportunities

Key Capture is one of a handful of US battery firms exploring a sale or capital raise.

Generate Capital is exploring a sale or capital raise for esVolta, another early mover in the battery space. Flatiron, a Denver-based battery developer backed by Hull Street Energy, has mandated Guggenheim Partners to explore strategic options including a sale. And BlackRock is seeking development capital for battery developer Jupiter Power ahead of a future potential exit.