TotalEnergies Completes Acquisition of Total Eren for $1.6 Billion

TotalEnergies will increase its stake from approximately 30% to 100%


France-based energy conglomerate TotalEnergies is acquiring full ownership of renewable energy company Total Eren. The deal follows a strategic agreement signed in 2017 between the two, which granted TotalEnergies the right to acquire the entirety of Total Eren shares after five years.

With the purchase, TotalEnergies will increase its stake from approximately 30% to 100%, fully integrating Total Eren’s teams within its renewables business unit.

The acquisition of 70.8% represents a net investment of around €1.5 billion (~$1.6 billion) for TotalEnergies.

TotalEren is valued at an enterprise value of €3.8 billion (~$4.2 billion), with 3.5 GW of renewable capacity currently in operation worldwide and a pipeline of over 10 GW of solar, wind, hydroelectric, and storage projects in 30 countries.

The acquisition provides TotalEnergies with a substantial boost to its integrated power net operating income, expected to increase by €160 million (~$176.8 million), and its cash flow from operations by around €400 million (~$442.2 million) in 2024.

TotalEnergies also gains access to Total Eren’s ventures into green hydrogen  North Africa, Latin America, and Australia.

These green hydrogen activities will continue through a new partnership called “TEH2,” with 80% ownership by TotalEnergies and 20% by EREN Group.

Patrick Pouyanné, Chairman & CEO of TotalEnergies, noted that Total Eren’s expertise and global presence would strengthen the group’s renewable activities.

At the end of March 2023, TotalEnergies’ gross renewable electricity generation installed capacity was 18 GW. It aims to reach 35 GW of gross production capacity from renewable sources and storage by 2025, and 100 GW by 2030.

Recently, TotalEnergies said it has sold 50% of a 234 MW portfolio of renewable projects to insurance group Crédit Agricole Assurances. The company said that the transaction implied an enterprise value of $300 million (100%) for the portfolio.

Last year, TotalEnergies signed an agreement with Adani Enterprises to acquire a 25% interest in Adani New Industries to produce and commercialize green hydrogen in India.