French energy firm TotalEnergies is expanding its renewable energy portfolio in the US with the proposed acquisition of a 50% stake in a US renewables energy firm of Clearway Energy Group (CEG) from the fund Global Infrastructure Partners (GIP),
It said in a statement that CEG is a developer of renewables projects and controls and owns 42 % of economic interest of its listed subsidiary, Clearway Energy Inc, into which projects are dropped when they reach commercial operation.
With this acquisition, TotalEnergies is establishing a major position in the US renewable energy and storage market. Clearway 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. Headquartered in San Francisco, Clearway has approximately 760 employees.
For this transaction, GIP will receive US$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 Corporation, a leader in residential solar in the U.S.
The transaction takes into account valuations of US$35.1 per share for CWEN and US$18 per share for SunPower.
As part of this partnership, TotalEnergies will contribute to enhance Clearway’s growth prospects by providing CWEN in the US 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 US to more than 25 GW and contributes to the objective that the US account for at least 25% of the Company’s global target of 100 GW by 2030.
“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.
“This transaction perfectly fits with our strategy to make renewable electricity one of our main growth drivers along with liquefied natural gas that we have recently reinforced with the launch of Cameron extension. It illustrates our priority to accelerate the transformation of the company to become a sustainable and profitable multi-energy company,” said Patrick Pouyanné, chairman and CEO of TotalEnergies.
