TotalEnergies have reached an agreement to buy 50% of Clearway Energy Group, as the firm continues to branch out from its traditional focus on oil and concentrate more on the renewables market.
Clearway is the fifth-largest renewables company in the US, and the acquisition is the largest to date of a company in the renewables sector by the French multinational.
TotalEnergies said they would be partnering with Global Infrastructure Partners (GIP). Under the terms of the agreement, GIP will receive a holding of 50% minus one share in the TotalEnergies subsidiary that is majority owner of SunPower Corporation, plus a $1.6 billion cash payment.
Traditionally one of the giants of the oil industry, TotalEnergies has shifted its focus to renewable energy in recent years, and has a stated goal of achieving zero carbon emissions by 2050. The company has made a number of investments in clean energy projects since 2015.
Clearway has 7.7 GW of wind and solar assets in operation via 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.
TotalEnergies CEO said that the deal “allows TotalEnergies to scale up in the US market, one of the most dynamic in the world, benefiting from operating assets and a 25 GW high quality pipeline, in wind, solar and storage, with a wide geographic coverage with a presence in 34 states”.
TotalEnergies reported a sharp increase in its quarterly profit last month, with rising oil and gas prices in the wake of Russia’s invasion of Ukraine boosting revenues.