TotalEnergies has signed an agreement with Partners Group for the acquisition of VSB Group, a developer of renewable projects based in Germany,
The deal is for a consideration of €1.57bn in equity and shareholder loans.
VSB has more than 2GW of developed onshore wind capacity in Europe, with 475MW of renewable capacity in operation or under construction primarily in Germany and France, and an 18GW pipeline of wind, solar and battery storage technologies primarily in Germany, Poland and France.
This transaction will strengthen TotalEnergies’ integrated electricity value chain in Germany, which represents half of VSB’s portfolio, according to the company.
This complements recent acquisitions of battery storage developer Kyon Energy and energy manager Quadra Energy, as well as TotalEnergies’ major positions in offshore wind in the north of the country.
Furthermore, TotalEnergies has signed an agreement with the Apollo investment fund for the sale of 50% of a 2GW portfolio of solar projects and storage systems located in Texas.
This transaction will bring US$800m in cash to TotalEnergies (US$550m in Apollo’s equity and US$250m by refinancing shareholder loans), the French oil and gas giant said.
The portfolio consists of three solar projects with a total capacity of 1.7GW and two battery storage projects with a capacity of 300MW.
Following this transaction, subject to certain preconditions, TotalEnergies will retain a 50% stake and will remain the operator of the assets, Danish Fields, Cottonwood and Hill Solar I.
The electricity produced by these projects has been partly sold to third parties, and the remainder will be marketed by TotalEnergies, it said,
Stéphane Michel, managing director for gas, renewables & power at TotalEnergies, said: “In line with our strategy, these two transactions allow us to optimize our capital allocation in renewable energies and contribute to improving the profitability of our Electricity sector.
“We welcome VSB Group’s 500 employees and their leading expertise in onshore wind power in European markets.
“Their skills and assets will contribute to the development of our integrated electricity strategy in Europe, particularly in Germany.
“In addition, we look forward to working with Apollo as a partner in our renewable assets in Texas,” he added.