BrightSource uses spin-off subsidiaries to reinvent itself

Focusing on renewable energy and smart grid solutions

BrightSource Energy, Inc. (BSE), a global leader in concentrated solar thermal power (CSP) technology, has announced the spin-off of its Israeli, UK, and South African subsidiaries, paving the way for the formation of New BrightSource Energy LTD (New BrightSource). Under the leadership of Izik Kirshenbaum and Israeli and UK management, New BrightSource aims to capitalize on the renewable energy market, battery storage management, and AI-based smart grid solutions.

As part of the spin-off, BSE has been renamed Kelvin Energy Inc. (KE) and has become a minority shareholder in New BrightSource. The strategic move is intended to foster synergy between BSE’s CSP technology and the emerging energy management markets.

David Ramm, Chairman and CEO of BSE, commented, “This transaction, through the formation of debt-free New BrightSource and its exceptional management and technology team, presents the best opportunity to create synergy between our CSP technology and the growing energy management markets.”

New BrightSource will leverage its technology portfolio to develop new solutions based on a deep understanding of distributed energy management. Additionally, the company will continue to provide CSP technology, project services, and support to BSE’s existing projects in Israel, Dubai, and South Africa.

Izik Kirshenbaum, appointed as Chairman and CEO of New BrightSource, expressed excitement about the company’s future endeavours, stating, “We are committed to becoming a key player in addressing the challenges of global decarbonization and creating a sustainable environment for future generations. Leading the exceptional team at New BrightSource, with our ground-breaking intelligent energy management technologies, allows us to contribute to the emerging markets of smart renewable grids.”

Kelvin Energy Inc., retaining its equity position in the Ivanpah project in California, will continue to offer technical advisory services at Ivanpah and explore CSP business opportunities in the United States and Canada.

Troy Taylor, Vice Chairman of BSE, emphasized the strategic nature of the spin-off, saying, “After considering various strategic alternatives over the past few years, this spin-off transaction provides the best path forward to explore new CSP opportunities while maximizing potential value for existing KE stakeholders.”

The spin-off of subsidiaries and the formation of New BrightSource represent an important step for both companies, allowing each to pursue their respective goals and contribute to the advancement of renewable energy and smart grid solutions.



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