TotalEnergies has announced a $1.6 billion deal with Global Infrastructure Partners (GIP) to acquire 50% of the US’ fifth-largest renewables developer, Clearway Energy Group (CEG).
The supermajor said the deal was its largest renewables acquisition in the US so far.
The San Francisco-headquartered developer controls and owns 42% of its listed subsidiary, Clearway Energy (CWEN), into which projects are dropped when they reach commercial operation.
Employing around 760 people, the group has 7.7 GW of wind and solar assets in operation through CWEN, alongside a 25 GW pipeline of renewable and storage projects, of which 15GW are in an “advanced stage” of development.
Under the deal private equity group GIP will receive $1.6bn in cash and an interest of 50% minus one share in the TotalEnergies subsidiary that holds a 50.6% ownership in residential solar firm SunPower.
The transaction is based on a valuation of $35.1 per share for CWEN and $18 per share for SunPower.
In addition, TotalEnergies will provide CWEN with access to its US power trading capabilities and will give it priority on the farm down of its own developed projects.
The acquisition would see it take a “major position” in the US market, TotalEnergies added, and takes its total US clean energy portfolio above 25 GW.
The company is already developing 8 GW of projects following the acquisition of portfolio from SunChase, its partnership with Hanwha Energy and the recent acquisition of Core Solar. Meanwhile, in offshore wind, it has secured a 4 GW pipeline of projects off the coast of New York and North Carolina, after having been successful in tenders.
“We are delighted with this partnership with Global Infrastructure Partners, which is a major player in renewables, particularly in the United States. It allows TotalEnergies to scale up in the U.S. 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,” said chairman and CEO Patrick Pouyanné.
GIP chairman and CEO Adebayo Ogunlesi added: “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 U.S.
Mr Ogunlesi also welcomed his company’s investment in SunPower, its first commitment in distributed energy.
“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,” he continued.