TotalEnergies Enhances Renewable Capacity with Significant Deals

TotalEnergies Expands Renewable Ventures Through Strategic Moves

TotalEnergies recently took a significant step forward in its Integrated Power strategy by signing a deal with Swiss asset manager Partners Group. This partnership involves acquiring VSB Group, a well-respected renewable energy project developer based in Germany. The acquisition is valued at €1.57 billion, encompassing both equity and shareholder loans.

Strengthening Renewable Energy Portfolio in Germany

VSB Group stands out as a leader in renewable energy across Europe, boasting nearly 30 years of experience in the sector. With a workforce of around 500 employees, VSB has developed over 2 GW of onshore wind capacity throughout Europe. Currently, VSB operates or has under construction more than 475 MW of renewable energy capacity, predominantly in Germany and France. Furthermore, the company has an impressive pipeline of 18 GW in wind, solar, and battery storage technologies, primarily across Germany, Poland, and France.

A Complement to Existing Acquisitions

This acquisition is expected to enhance TotalEnergies' Integrated Power value chain within Germany, which features prominently in VSB's portfolio. In line with its growth strategy, TotalEnergies previously acquired battery storage developer Kyon Energy and energy manager Quadra Energy, further reinforcing its position in the renewable sector. Additionally, TotalEnergies has made notable strides in offshore wind projects in northern Germany, ensuring its place among the top players in renewable energy in France.

Transaction Impact in the United States

In conjunction with its ventures in Germany, TotalEnergies has also made significant moves in the U.S. renewable energy market. The company signed a deal with funds managed by Apollo, which involves the sale of a 50% stake in a portfolio of solar and battery energy storage systems located in Texas with a combined capacity of 2 GW. This includes three solar projects amounting to 1.7 GW and two battery storage projects totaling 300 MW.

Future Developments and Operations

Following this transaction, which is subject to customary conditions, TotalEnergies will hold onto 50% of the portfolio, continuing to operate the assets, which include the Danish Fields, Cottonwood, and Hill Solar I projects. The electricity generated from these projects is either already committed to third parties or will be marketed by TotalEnergies itself.

Comments from Leadership

Stéphane Michel, president of Gas, Renewables, and Power at TotalEnergies, expressed enthusiasm regarding these developments. He stated, "In line with our strategy, these transactions will enable us to optimize our capital allocation in renewables and improve the profitability of our Integrated Power business. We welcome the dedicated team at VSB Group as they will contribute significantly to our development in Europe, especially in Germany. We are equally excited about partnering with Apollo in Texas for our renewable assets.”

Expanding the Integrated Power Business Model

TotalEnergies aims to construct a competitive portfolio that integrates renewable sources (such as solar, onshore wind, and offshore wind) alongside flexible energy resources like combined cycle gas turbines and storage systems. The company's ambitious targets include achieving a 12% profitability goal for its Integrated Power division and potentially divesting up to 50% of its renewable assets once operational and de-risked.

By the close of 2024, TotalEnergies is projected to have an installed gross renewable electricity generation capacity exceeding 24 GW. This is part of a broader vision to grow this capacity to 35 GW by 2025 and exceed 100 TWh of net electricity production by 2030.

About TotalEnergies

TotalEnergies stands as a global integrated energy powerhouse, involved in oil and biofuels, natural and green gases, renewables, and electricity production. Committed to sustainability, the company employs over 100,000 personnel devoted to delivering reliable, affordable, and sustainable energy solutions across approximately 120 countries.

Frequently Asked Questions

What recent acquisition did TotalEnergies make?

TotalEnergies acquired VSB Group, a German renewable energy project developer, for €1.57 billion.

How does TotalEnergies plan to enhance its renewable energy portfolio?

TotalEnergies aims to optimize capital allocation in renewables and intends to sell stakes in renewable assets to maximize value and manage risks.

What are the notable projects included in the U.S. portfolio sale?

The U.S. portfolio includes three solar projects with 1.7 GW capacity and two battery storage projects amounting to 300 MW.

What are TotalEnergies' profitability targets for 2024?

TotalEnergies aims to achieve a 12% profitability target for its Integrated Power division by optimizing its renewable portfolio.

How does TotalEnergies approach sustainability?

TotalEnergies prioritizes sustainability at the core of its strategy, investing in reliable and sustainable energy solutions across multiple countries.

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