Flower Infrastructure Technologies AB and ENGIE have signed a long-term virtual Flexibility Purchase Agreement covering 126 megawatts of battery energy storage capacity in Germany, marking what both companies describe as a significant step toward scaling flexible energy infrastructure across Europe.

Terms of the Agreement

The deal, announced on June 22, 2026, takes the form of a seven-year virtual Flexibility Purchase Agreement, also referred to as a virtual toll. The agreement is set to begin on January 1, 2029, and covers battery-backed flexible capacity drawn from a portfolio of Flower's assets in Germany.

Under the terms of the arrangement, ENGIE will secure long-term access to the flexibility of those battery assets and integrate them into its market activities.

The agreement was signed between ENGIE, which describes itself as a global reference in low-carbon energy and services, and Stockholm-based energy tech company Flower Infrastructure Technologies AB. ENGIE's German operations are headquartered in Cologne.

Projects Covered Under the Deal

The agreement supports the financing and deployment of several battery projects. The centerpiece is a 100 megawatt, 400 megawatt-hour battery storage project in Hamburg, described as the largest battery energy storage system project in the city.

This project was internally developed by Flower. The second asset covered by the agreement is Flower's recently acquired battery storage project located in Döllnitz, in the Saxony-Anhalt region of Germany, with a capacity of 63 megawatts and 257 megawatt-hours. Together, these two projects account for the 126 megawatts of capacity covered by the agreement.

The Hamburg project is supported in its financing through the structure of this agreement, according to the announcement. Flower's development and optimization expertise is being combined with ENGIE's trading and risk management capability as part of the commercial framework.

How Battery Storage Fits the German Energy Market

Battery energy storage systems play a role in balancing supply and demand on the electricity grid by storing power when supply exceeds demand and releasing it when needed.

According to the announcement, these assets contribute to grid stability and support the integration of renewable energy in Germany through their use across wholesale and ancillary services markets.

The agreement is structured to address what both companies characterize as a bankability challenge for battery storage. By pairing Flower's asset portfolio and optimization technology with ENGIE's risk management and structuring expertise, the companies say market and operational risks can be effectively managed, making battery storage systems both bankable and scalable.

Executives Outline Strategic Rationale

Katrin Fuhrmann, Managing Director of ENGIE Supply and Energy Management activities in Germany, said the agreement illustrates how long-term partnerships can support the scaling of battery storage and reinforce flexibility in the energy system.

She described the combination of expertise as strengthening the ability to deliver reliable and competitive flexibility solutions that support customers in managing price volatility and integrating renewable energy.

John Diklev, Founder and CEO of Flower, called the agreement a significant milestone not only for the two companies but for Europe's path to affordable, reliable, and clean energy.

Diklev said Europe needs scalable, long-term flexibility agreements to accelerate the energy transition and that such structures are essential for unlocking the capital required to build what he described as tomorrow's flexibility infrastructure.

A New Commercial Model for Flower

The agreement also represents a new commercial model for Flower, combining long-term partnerships with continued growth of its asset portfolio in Europe. The company has been expanding its geographic footprint, with previous announcements referencing entries into Germany, Finland, and the Netherlands. This deal follows Flower's acquisition of the Döllnitz project, which was described as the company's first large-scale battery storage project in Germany.

Both ENGIE and Flower indicated in the announcement that they intend to explore further collaboration opportunities as flexibility markets continue to evolve across Europe, though no specific future projects or timelines were identified.

Company Backgrounds

ENGIE reported a turnover of USD 82.40 billion in 2025 and employs more than 90,000 people across 30 countries. The company covers the full energy value chain, from production through infrastructure to sales, and includes renewable electricity, green gas, transmission and distribution networks, and local energy infrastructure among its activities.

ENGIE invests an average of USD 13.75 billion per year toward its goal of achieving net-zero carbon by 2045 and is listed on the Paris and Brussels stock exchanges under the ticker ENGI.

Flower Infrastructure Technologies AB is an energy technology company focused on the development, acquisition, and optimization of battery energy storage assets. The company has described this agreement as central to a commercial strategy built around long-term flexibility contracts that can support infrastructure financing at scale.

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