France’s TotalEnergies is shifting its renewable energy investments in the U.S. and Europe, selling half of its 2-gigawatt (GW) solar and battery energy storage projects in Texas to Apollo in deal valued at $800 million, the company said Dec. 4.

TotalEnergies’ agreement to farm down its U.S. renewable position coincided with the company signing an agreement to buy Partners Group’s German-based renewable developer VSB Group for €1.57 billion (US$1.65 billion).

VSB is a renewable leader in Europe with 500 employees. VSB’s business has developed onshore wind power farms across Europe with more than 2 GW of developed capacity. The company has more than 475 megawatts (MW) of renewable capacity in operation or under construction, chiefly in Germany and France.

The company also has a pipeline of 18 GW of wind, solar and battery storage technologies across Germany, Poland and France.

TotalEnergies’ U.S. renewable portfolio consists of three solar projects with a 1.7 GW capacity and two battery storage projects with 300 MW of capacity.

TotalEnergies will retain a 50% stake and remain as operator of the assets, which are Danish Fields, Cottonwood and Hill Solar I. The electricity production of these projects has either already been sold to third parties or will be commercialized by TotalEnergies.

"In line with our strategy, these transactions will enable us to optimize our capital allocation in renewables and contributes to improve the profitability of our Integrated Power business. We welcome the 500 employees of VSB Group and their leading onshore wind expertise in European markets. Their competences and assets will contribute to the development of our Integrated Power strategy in Europe, and notably in Germany,” said Stéphane Michel, president of gas, renewables and power at TotalEnergies. “Finally, we are looking forward to joining forces with Apollo as a partner in our renewable assets in Texas.”

Comments