Finnish technology group Wartsila Corp has announced the commencement of a strategic review of its energy storage and optimization (ES&O) activities, which could lead to the divestment of the business.
The company has expressed its intent to explore all potential strategic alternatives, including different ownership options involving full or partial divestment. Through this initiative, the Helsinki-based firm seeks to identify pathways that could accelerate the further growth of its ES&O business, with a focus on benefiting its customers, employees, and creating value for Wartsila shareholders.
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Wartsila's CEO, Hakan Agnevall, emphasized the notable progress made in the Energy Storage and Optimization business and the remarkable growth witnessed in the market. As a result, the company believes that this is an opportune moment to assess future options and determine the most effective approach to support the business's expansion while generating shareholder value.
While a specific timeframe for completing the assessment was not provided, Wartsila has affirmed its commitment to ongoing investments in the ES&O business throughout the review process.
The ES&O business achieved EUR 983 million (USD 1.05bn) in net sales over the 12 months leading up to September 2023 and transitioned to profitability within the same 12-month period. In the previous year, the unit successfully deployed 545 megawatt-hours of energy storage capacity and secured an order intake exceeding 2,118 megawatt-hours.
