Electriq Power announced that it will go public via a SPAC acquisition valued at $495 million. The intelligent energy storage and management company will trade on the New York Stock Exchange when the deal closes in the first half of 2023.
Founded in 2014 in Silicon Valley, Electriq “provides intelligent energy storage and management solutions for residential and small business use. In combination with rooftop solar, Electriq’s solutions provide always-available, low-cost clean energy, even during intermittent outages and inclement weather,” according the deal’s press release.
With solar installation forecast to grow at 17% per year, Electriq looks to harness $125 million in cash proceeds from the deal along with additional debt to accelerate its growth within the expanding industry. While solar energy production is still dwarfed by natural gas and coal, solar energy technology – along with the cloudy day backup capabilities provided by companies such as Electric Power – has spurred greater adoption in recent years. In fact, residential solar power installations soared by 34% from 2.9 gigawatts in 2020 to 3.9 gigawatts in 2021. Government incentives have also pushed consumers toward solar options as nations seek to limit carbon emissions.
Per capita carbon dioxide emissions from fossil fuels in the United States
1970 – 2020
(in metric tons of carbon dioxide)
As part of the Paris Climate Agreement, which the Biden Administration rejoined in 2021, the United States committed to cutting emissions cutting its greenhouse gas emissions by 26-28% below 2005 levels by 2025. The nation’s emissions had already dropped to 20% below 2005 levels by 2020 and had been dropping an average of 1% per year since their 2005 peak. This decline is largely attributed to the country’s shift away from coal power to less cardon-intensive natural gas as well as wind and solar power generation.
Some argue that the world is far from reaching the Paris Climate Agreement’s goal of limiting global warming to below 2 degrees Celsius, however, due to developing nations’ rapid increase in emissions. China has leapfrogged the United States to become the world’s largest emitter of greenhouse gasses – and by far: China’s emissions alone exceed all developed nations’ emissions combined. China’s emissions pledges under the Paris Climate Agreement have been derided as “highly insufficient” and “are not at all consistent with holding warming to below 2C.”
According to Matterhorn’s M&A database, which harnesses both AI and attorneys to digest the granular deal points of publicly announced transactions, Electriq Power was advised by law firm Ellenoff Grossman & Schole LLP. The SPAC TLG Acquisition One Corp. was advised by Gibson, Dunn & Crutcher LLP.