TotalEnergies said that the acquisition is its largest in the renewable energy sector in the U.S., one of the world’s top three renewable markets.
CEG is a developer of renewables projects and controls and owns 42% of the economic interest of its listed subsidiary, Clearway Energy (CWEN), into which projects are dropped when they reach commercial operation.
The company operates 7 GW of wind and solar assets through its listed subsidiary CWEN. It has a 25 GW pipeline of renewable and storage projects, of which 15 GW are in an advanced stage of development.
Under the transaction, 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, a residential solar company in the U.S.
The transaction took into account valuations of $35.1 per share for CWEN and $18 per share for SunPower.
As part of this partnership, TotalEnergies will contribute to enhancing Clearway’s growth prospects by providing CWEN in the U.S. with access to its power trading capabilities and giving it a priority on the farm down of its own developed projects.
TotalEnergies, along with GIP as an equity partner, expects to support SunPower management’s growth strategy.
Commenting on the acquisition, Patrick Pouyanné, Chairman and CEO of TotalEnergies, said, “We are delighted with this partnership with Global Infrastructure Partners, a major player in renewables, particularly in the United 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 the Cameron extension. It illustrates our priority to accelerate the transformation of the company to become a sustainable and profitable multi-energy company.”
The acquisition brings TotalEnergies’ renewable portfolio in the U.S. to more than 25 GW and contributes to the objective that the U.S. accounts for at least 25% of the company’s global target of 100 GW by 2030.
In April this year, TotalEnergies acquired Core Solar, an Austin-based solar project developer with a solar and energy storage project portfolio of more than 4 GW across the U.S.
For the first quarter (Q1) of 2022, TotalEnergies reported a net income of $4.9 billion, a 48% year-over-year increase compared to $3.3 billion in Q1 of 2021.