TotalEnergies and Brazillian developer Casa dos Ventos (CDV) have created JV to jointly develop, build and operate the latter’s 12GW renewables portfolio.
Under the agreement TotalEnergies will hold a 34% stake in the JV while CDV will have the remaining 66% interest.
The CDV portfolio includes 700MW of onshore wind capacity in operation, 1GW of onshore wind under construction, 2.8GW of onshore wind and 1.6GW of solar projects under well advanced development (COD within five years).
In addition, the newly formed JV will have the right to acquire the current and new projects that are or will be developed by CDV as they reach execution stage.
This will allow the JV to access an additional portfolio of at least 6GW, that CDV will continue to expand.
TotalEnergies will pay a cash consideration of US$550m (€551m) and up to US$30m in earn-out to complete the acquisition.
In addition, TotalEnergies will have the option to acquire an additional 15% equity share in the JV after 5 years.
TotalEnergies said it will support the JV accelerating its growth thanks to its global presence in the Corporate PPA market, its purchasing power resulting from its worldwide size.
Furthermore, its trading expertise well suited to the Brazilian merchant market and its strong balance sheet allowing the JV to improve its financing cost, it added.
CDV, which has developed 25% of the onshore wind assets in operation today in Brazil, will bring to the JV its deep knowledge of the Brazilian market and a very high-quality portfolio while shifting from a developer to a producer business model.
TotalEnergies chief executive Patrick Pouyanné said: “After Adani Green in India and Clearway in the United States, I am delighted with this new major partnership in Brazil, with Casa dos Ventos, the leader in onshore wind energy.
“With this transaction, TotalEnergies acquires not less than a leading position in the Brazilian renewable energy market, one of the most dynamic merchant markets in the world.
“This market fits our strategy of taking advantage of the growth of the deregulated power markets, which is crucial to the energy transition.
“With a total of 12GW in operation, construction and development, both wind and solar, this transaction is an additional step in TotalEnergies ambition to reach 100GW of renewable production by 2030 and in its transformation into a sustainable and profitable multi-energy company.”
Founder and president of Casa dos Ventos Mario Araripe added: “The partnership between Casa dos Ventos and TotalEnergies was structured to maximize the complementarities and synergies between the companies.
“In addition to its financial strength, TotalEnergies’ global footprint will contribute to the expansion of our client portfolio and enhance our knowledge in new fields of the energy transition.
“We are confident that this partnership positions us in a strategic role to lead the sustainable energy agenda in Brazil.”