TotalEnergies, a multinational integrated oil, and gas firm, signed an agreement with Global Infrastructure Partners (GIP) to acquire a 50% stake in Clearway Energy Group (CEG), a clean energy developer in the U.S.
CEG is a developer of renewable energy projects and controls and owns 42 % of the economic interest of its listed subsidiary, Clearway Energy (CWEN), into which projects are placed when they reach commercial operation. The company owns 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.
Under the deal, GIP will receive $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. The transaction is at a valuation of $35.1 per share for CWEN and $18 per share for SunPower.
Through the acquisition, TotalEnergies’ renewable portfolio in the U.S. comes to more than 25 GW. GIP joins as an equity partner in SunPower.
“It allows TotalEnergies to scale up in the U.S. market, one of the most dynamic globally, benefiting from operating assets and a 25 GW high-quality pipeline, in the wind, solar, and storage, with a wide geographic coverage with a presence in 34 states. This transaction perfectly fits our strategy to make renewable electricity one of our main growth drivers and liquefied natural gas that we have recently reinforced with the launch of the Cameron extension. It illustrates our priority to accelerate the company’s transformation to become a sustainable and profitable multi-energy company,” said Patrick Pouyanne, Chairman and CEO of TotalEnergies.
Earlier this month, TotalEnergies acquired Austin-based Core Solar, a solar project developer, with 4 GW of utility-scale solar and energy storage projects at various stages of development across the US states. Core Solar’s CEO Greg Nelson and his employees will join TotalEnergies’ teams as part of the transaction.
According to Mercom’s Q1 2022 Solar Funding and M&A Report, a total of 29 solar M&A transactions were recorded in Q1 2022 compared to 43 in Q4 2021. In a YoY comparison, there were 20 solar M&A transactions in Q1 2021.