TotalEnergies has announced the signature of agreements with Global Infrastructure Partners (GIP) to acquire 50% of Clearway Energy Group (CEG), the fifth US renewable energy player. This constitutes its largest acquisition in the renewable energy in the US, one of the top three renewable markets in the world. With such transaction, TotalEnergies is further accelerating its growth in the renewable energy sector by partnering with GIP, a leading global infrastructure fund.
CEG is a developer of renewables projects and controls and owns 42% of economic interest of its listed subsidiary, Clearway Energy Inc. (CWEN), into which projects are dropped when they reach commercial operation.
With this acquisition, TotalEnergies is establishing a major position in the US renewable energy and storage market. Clearway has 7.7 GW of wind and solar assets in operation through its listed subsidiary CWEN and has a 25 GW pipeline of renewable and storage projects, of which 15 GW are in an advanced stage of development. Headquartered in San Francisco, US, Clearway has approximately 760 employees.
In the frame of this transaction, GIP will receive US$1.6 billion in cash and an interest of 50% minus one share in the TotalEnergies subsidiary that holds its 50.6% ownership in SunPower Corporation. The transaction takes into account valuations of US$35.1 per share for CWEN and US$18 per share for SunPower.
As part of this partnership, TotalEnergies will contribute to enhance Clearway’s growth prospects by providing CWEN in the US with access to its power trading capabilities and will give it priority on the farm down of its own developed projects.
The acquisition brings TotalEnergies' renewable portfolio in the US to more than 25 GW and contributes to the objective that the US account for at least 25% of the company's global target of 100 GW by that time.
This transaction complements the portfolio that TotalEnergies has built up in the US since the beginning of 2021:
- In large-scale solar, TotalEnergies is already developing 8 GW of projects following the acquisition of a projects portfolio from SunChase, its partnership with Hanwha Energy and the recent acquisition of Core Solar.
- In offshore wind, TotalEnergies will develop 4 GW of projects off the coast of New York and North Carolina, after having been successful in tenders.
Finally, TotalEnergies welcomes GIP as an equity partner in SunPower. SunPower is the second largest residential solar company in the US, providing customers with fully integrated solar, storage, home energy and financing solutions. TotalEnergies and GIP are well-positioned to support together SunPower management’s growth strategy.
“We are delighted with this partnership with GIP, which is a major player in renewables, particularly in the US. It allows TotalEnergies to scale up in the US market, one of the most dynamic in the world, benefiting from operating assets and a 25 GW high quality pipeline, in wind, solar, and storage, with a wide geographic coverage with a presence in 34 states. This transaction perfectly fits with our strategy to make renewable electricity one of our main growth drivers along with liquefied natural gas that we have recently reinforced with the launch of Cameron extension. It illustrates our priority to accelerate the transformation of the company to become a sustainable and profitable multi-energy company,” said Patrick Pouyanné, Chairman and CEO of TotalEnergies.
“We are extremely pleased to partner with TotalEnergies to continue leading the energy transition in the US. We are proud of the growth and accomplishments of the Clearway team since our initial investment in 2018, and we are confident that with TotalEnergies as a partner, Clearway will be able to accelerate the deployment of cost competitive renewable power in the US. At the same time, GIP’s investment in SunPower is our initial commitment in the distributed generation space, which we believe will provide critical solutions to facilitate the nation’s clean energy future. The scale, capabilities and ambition that both GIP and TotalEnergies bring to this partnership will support our shared vision to build industry-leading utility scale and distributed renewables platforms in the US,” said Adebayo Ogunlesi, Chairman and CEO of GIP.
Both transactions are subject to customary conditions, including receipt of requisite regulatory approvals.
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