Clean Energy

TotalEnergies takes control of renewables firm for $1.66bn

Chief executive offi cer Patrick Pouyanne has pledged to spend $5bn this year on low-carbon energies — almost a third of total capital expenditure — as the company reduces its exposure to petroleum with ongoing sales of Canadian oilsands assets and some of its European service stations. By buying out the 71% in Total Eren it doesn’t already own, TotalEnergies gains full control of a fi rm that has 3.5 gigawatts of operating solar, wind and hydropower assets, with a project pipeline of more than 10 gigawatts, it said Tuesday. The purchase should increase the net operating income of its power division by around €160mn next year, and operating cash fl ow by about €400mn. The renewable energy company, founded in 2012 by Paris Mouratoglou and David Corchia, operates in more than 20 countries, including Brazil, India and Greece. It recently teamed up with Kazakh partners to invest $1.4bn in a giant wind and battery-storage project in the Central Asian nation, and is also developing green hydrogen in North Africa, Latin America and Australia. Eren Groupe SA, which is led by Mouratoglou and Corchia, said it will use the proceeds of the Total Eren sale to further invest in the energy management in buildings, energy recovery from organic sludge and wastewater, biomass farming as well as renewable gas and green hydrogen production. The company will also keep investing in new nuclear technologies after buying stakes in reactor startups Jimmy Energy and Naarea last year. Bpifrance, Tikehau Capital SCA, Peugeot Invest and Next World Capital LLC, which have been investing in Total Eren in several steps since 2015, sold their minority stake to TotalEnergies, according to a joint statement yesterday. They earned more than twice the amount they invested. TotalEnergies bought an initial stake of 23% in Eren for €237.5mn in 2017, and subsequently increased its interest to near 30%. In the past year or so, the French major also snapped up 50% of US renewable developer Clearway Energy Group for $2.4bn and 34% of Brazil’s Casa dos Ventos for as much as $580mn.

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