PARIS — TotalEnergies has agreed with Global Infrastructure Partners (GIP) to acquire 50% of Clearway Energy Group (CEG), the fifth U.S. renewable energy player, according to a recent TotalEnergies news release.
This constitutes its largest acquisition in renewable energy in the U.S. With this transaction, TotalEnergies is further accelerating its growth in the renewable energy sector by partnering with GIP, a 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.
CEG 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.
In the frame of this transaction, GIP will receive $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 Corp. The transaction takes into account valuations of $35.1 per share for CWEN and $18 per share for SunPower.
As part of this partnership, TotalEnergies will contribute to enhance CEG's growth prospects by providing CWEN in the U.S. 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 U.S. to more than 25 GW and contributes to the objective that the U.S. accounts for at least 25% of the company's global target of 100 GW by 2030.
This transaction complements the portfolio that TotalEnergies has built up in the U.S. 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.
Both transactions are subject to customary conditions, including receipt of requisite regulatory approvals.
TotalEnergies and renewable electricity
As part of its ambition to get to net zero by 2050, TotalEnergies is building a portfolio of activities in renewables and electricity. At year-end 2021, TotalEnergies' gross renewable electricity generation capacity was more than 10 GW. TotalEnergies will continue to expand this business to reach 35 GW of gross production capacity from renewable sources and storage by 2025, and then 100 GW by 2030 with the objective of being among the world's top five producers of electricity from wind and solar energy.