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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.
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