(Source: Shutterstock)
France’s TotalEnergies signed a deal with institutional investor EIG to acquire all the shares of West Burton Energy for an enterprise value of £450 million ($575 million).
West Burton Energy owns and operates the West Burton B gas-fired power plant in Nottinghamshire, England, TotalEnergies said June 5 in a press release.
The West Burton B plant consists of three combined-cycle gas turbines with total output of 1.3 gigawatts (GW). The plant was commissioned in 2013 and is one of the U.K.’s most advanced power plants, according to TotalEnergies. The plant supplies some 1.8 million homes, and a 49-megawatt (MW) battery storage system was added in 2018.
The acquisition provides TotalEnergies with a flexible asset that mitigates intermittency to enable the supply of firm power to customers, the French energy company said in the release.
Given the size of TotalEnergies’ renewable portfolio in the U.K., which currently stands at 1.1 GW of gross installed capacity and 4.5 GW under development, the company has assessed its need for 700 MW of gas-based power generation capacity. Therefore, TotalEnergies plans to divest 50% of the acquired West Burton assets.
The deal allows TotalEnergies to strengthen its trading capabilities in the U.K.’s electricity and gas markets, as well as its ability to provide increasingly affordable, available and sustainable energy to its 300,000 U.K. electricity and gas customer sites. TotalEnergies will source gas for the power plant from its gas operations in the U.K. The company is an operator for 30% of its projects there.
The acquisition complements TotalEnergies’ 1.1 GW Seagreen offshore wind farm and allows the company to accelerate development of its Integrated power activities in power generation, trading and marketing in the U.K., TotalEnergies Gas, Renewables and Power President Stéphane Michel said in the release.
“The deal also contributes directly to our 2028 ROACE target of around 12% in this business sector,” Michel said.
RELATED
TotalEnergies Commissions Its Largest Wind Farm with Partner SSE Renewables
Recommended Reading
Delivering Dividends Through Digital Technology
2024-12-30 - Increasing automation is creating a step change across the oil and gas life cycle.
E&P Highlights: Dec. 16, 2024
2024-12-16 - Here’s a roundup of the latest E&P headlines, including a pair of contracts awarded offshore Brazil, development progress in the Tishomingo Field in Oklahoma and a partnership that will deploy advanced electric simul-frac fleets across the Permian Basin.
Halliburton, Coterra Launch Fully Automated Hydraulic Fracturing Tech
2025-01-06 - Halliburton Energy Services and Coterra Energy’s initial rollout of their autonomous hydraulic fracturing technology led to a 17% increase in stage efficiency.
Analysis: Middle Three Forks Bench Holds Vast Untapped Oil Potential
2025-01-07 - Williston Basin operators have mostly landed laterals in the shallower upper Three Forks bench. But the deeper middle Three Forks contains hundreds of millions of barrels of oil yet to be recovered, North Dakota state researchers report.
Cummins, Liberty Energy to Deploy New Engine for Fracking Platform This Year
2025-01-29 - Liberty Energy Inc. and Cummins Inc. are deploying the natural gas large displacement engine developed in a partnership formed in 2024.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.