As part of its development as an integrated power player in Germany, TotalEnergies has signed an agreement to acquire from its three founders the entire share capital of Kyon Energy — a German battery storage systems developer.
The consideration consists of a €90 million upfront payment, plus some earn out payments linked to the achievement of development targets.
TotalEnergies Gas, Renewables and Power President Stéphane Michel said: “The acquisition of this company, one of the leaders in its market, is a key element in our presence in the German electricity market, which is the largest in Europe.
“This acquisition will enable us to accelerate the development of our Integrated Power activities in Germany, both in production, trading, aggregation and marketing of low-carbon electricity available 24 hours a day.
“It also contributes to our profitability target for this business segment of 12 per cent ROACE by 2028.”
Since its creation in 2021, Kyon Energy has developed 770 MW of projects with very competitive connection costs of which 120 MW are already in operation, 350 MW are under construction and 300 MW are ready to build.
In addition, Kyon Energy’s portfolio includes a 2 GW pipeline of advanced-stage projects.
Collaborating with Kyon Energy’s managment and employees, TotalEnergies will develop, build, and operate those projects, mainly located in the North of Germany, as part of its integrated power strategy.
This new acquisition follows the company’s award of a maritime concession to develop a 3 GW offshore wind farm, the acquisition of the renewable energy aggregator Quadra Energy and the award of a contract to install and operate 1,100 high-power charge points for electric vehicles.
The battery storage system will contribute to the resilience of the German electricity system, help solving congestion problems or providing additional flexibility to the German power grid, and ultimately support the rapid expansion of renewable energies in Germany.