Johnson Controls International plc will provide the intellectual property and be a minority owner in a new energy storage joint venture with Consolidated Edison Solutions Inc., a subsidiary of New York-based Con Edison Cleaner Energy Businesses Inc., the companies announced Monday.
Con Edison Solutions will be the majority owner and operating partner of the joint venture. The company will also be the exclusive provider of battery storage systems to customers of Johnson Controls.
Energy storage group employees at Johnson Controls will become part of Con Edison Clean Energy Businesses effective immediately as part of the deal.
“We are proud of the success we have built with our energy storage business over the past five years and with this joint venture we are creating even more opportunity to take advantage of growth in both the behind-the-meter and front-of-meter market” said George Oliver, Johnson Controls chairman and chief executive officer.
Johnson Controls spokesman Fraser Engerman declined to say how many employees would transfer to Con Edison, but said those based in Milwaukee would remain here.
Engerman also said the joint venture is not connected to JCI’s review of its power solutions business.
Earlier this year, Johnson Controls announced a strategic review of its power solutions business, which primarily focuses on automotive batteries but also develops advanced battery technologies. In July the company said it expected to make a decision about a potential sale or spin-off by the time it reports earnings in November.
The battery storage systems JCI has developed learn the operating characteristics of a building’s electrical system and optimizes them for the end customer’s maximum economic benefit.
“We are excited about this new relationship with Johnson Controls,” said Mark Noyes, Con Edison Clean Energy Businesses president and CEO. “Energy storage will play a growing role in the coming years and this arrangement is a natural fit with our renewable energy and energy management offerings. We look forward to working with Johnson Controls to expand the market opportunities for this business.”
Additional terms of the agreement were not immediately disclosed.
