TotalEnergies has announced it is increasing its stake from close to 30 to 100 per cent in renewable energy business Total Eren.
Total Eren has 3.5 GW of renewable capacity in operation worldwide and a solar, wind, hydroelectric and storage projects pipeline of over 10 GW in 30 countries, of which 1.2 GW are in construction or late-stage development.
TotalEnergies will leverage Total Eren’s 2 GW assets in operation in countries such as Portugal, Greece, Australia, and Brazil to build up its integrated power strategy.
TotalEnergies will also benefit from Total Eren’s footprint and ability to develop projects in other countries such as India, Argentina, Kazakhstan, or Uzbekistan.
Total Eren has also launched pioneering green hydrogen projects in recent years, located in various regions, such as North Africa, Latin America, and Australia. These green hydrogen activities will be pursued through a new partnership in an entity named “TEH2” (80% owned by TotalEnergies and 20% owned by EREN Group).
TotalEnergies Chairman & CEO Patrick Pouyanné said: “Our partnership with Total Eren has been very successful, as shown by the size and quality of the renewables portfolio.
“With the acquisition and integration of Total Eren. we are now opening a new chapter of our development as the expertise of its team and its complementary geographical footprint will strengthen our renewable activities and our ability to build a profitable integrated power player.”
Total Eren CEO David Corchia said Total Eren’s teams will undoubtedly make a huge contribution to TotalEnergies’ highly ambitious plan in the renewable sector.
“We will continue creating and developing new companies for the energy transition and the planet’s decarbonisation, as well as, within our new promising partnership with TotalEnergies, the development of giant green hydrogen production projects worldwide.”
As part of this transaction, Total Eren is valued at €3.8 billion based on an attractive EBITDA multiple negotiated in the initial strategic agreement signed in 2017. The acquisition represents a net investment of around €1.5 billion for TotalEnergies.
Total Eren’s integration should result in an increase in TotalEnergies’ Integrated Power Net Operating Income of around €160 million and CFFO of around €400 million in 2024.
Total Eren will contribute the expertise and skills of nearly 500 people based in more than 20 countries.
