TotalEnergies buys back renewable energy venture in €3.8bn deal
French oil giant TotalEnergies is buying out the other shareholders in its Total Eren renewable energy joint venture in a deal worth €3.8bn.
Total Eren has 3.5 GW of renewable energy capacity in operation worldwide and a solar, wind, hydroelectric and storage projects pipeline of over 10 GW in 30 countries, of which 1.2 GW are in construction or late-stage development.
TotalEnergies is also setting up a green hydrogen joint venture called TEH2 that will be 80% owned by TotalEnergies and 20% owned by the EREN Group.
The 500 people in Total Eren will be fully integrated within TotalEnergies’ Renewables business unit. The deal follows the strategic agreement signed between TotalEnergies and Total Eren in 2017 which granted TotalEnergies the right to acquire all of Total Eren (formerly EREN RE) after a five-year period.
The deal for 70.8% of the venture values Total Eren at €3.8bn and represents a net investment of around €1.5 billion for TotalEnergies.
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TotalEnergies will use 2 GW of the renewable energy assets in Portugal, Greece, Australia and Brazil to build up its integrated power strategy. TotalEnergies will also benefit from Total Eren’s footprint and ability to develop projects in other countries such as India, Argentina, Kazakhstan, or Uzbekistan.
“Our partnership with Total Eren has been very successful, as shown by the size and quality of the renewables portfolio. With the acquisition and integration of Total Eren. we are now opening a new chapter of our development as the expertise of its team and its complementary geographical footprint will strengthen our renewable activities and our ability to build a profitable integrated power player,” said Patrick Pouyanné, Chairman & CEO of TotalEnergies.
“I want to thank Total Eren’s founders, Pâris Mouratoglou and David Corchia, as well as their teams, for their incredible development work, which led to this successful achievement. Today, we are welcoming Total Eren’s experienced teams, who will continue their remarkable work with the added resources of a bigger company.”
“This success belongs first to Total Eren’s teams around the globe. They will undoubtedly make a huge contribution to TotalEnergies’ highly ambitious plan in the renewable sector. Together with Pâris Mouratoglou, we will continue creating and developing new companies for the energy transition and the planet’s decarbonization, as well as, within our new promising partnership with TotalEnergies, the development of giant green hydrogen production projects worldwide,” said David Corchia, CEO of Total Eren.