TotalEnergies takes 50% stake in Clearway

Leading french energy player, TotalEnergies, has announced that it is acquiring a 50% stake in Clearway Energy Group (CEG) which is the 5th largest US renewable energy player. The deal is being done in association with Global Infrastructure Partners (GIP). This is the third largest acquisition in renewable energy in America which itself is one of the top three RE markets in the world. TotalEnergies has been on a major renewable acquisition drive.

CEG is a developer of renewables projects and controls and owns 42 % of economic interest of its listed subsidiary, Clearway Energy Inc (CWEN).

TotalEnergies is toiling to establish itself as a major player in the USA renewable energy and storage market. Presently, Clearway has 7.7 GW of wind and solar assets in operation through its listed subsidiary CWEN and has a 25 GW pipeline of renewable and storage projects. Out of the total, 15 GW are in an advanced stage of development.

In the frame of this 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, leader in residential solar in the U.S. The transaction takes into account valuations of $35.1 per share for CWEN and $18 per share for SunPower.

The acquisition brings TotalEnergies’ renewable portfolio in the U.S. to more than 25 GW and contributes to the objective that the United States account for at least 25% of the Company’s global target of 100 GW by 2030.

GIP is also the second largest residential solar company in the USA. TotalEnergies says that the partnership with GIP allows it to scale up in the U.S. 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.

Patrick Pouyanné, Chairman and CEO of TotalEnergies, said, “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 Cameron extension.”

Adebayo Ogunlesi, Chairman and CEO of GIP, stated, “We are proud of the growth and accomplishments of the Clearway team since our initial investment in 2018, and we are confident that with TotalEnergies as a partner, Clearway will be able to accelerate the deployment of cost competitive renewable power in the U.S. “The scale, capabilities and ambition that both GIP and TotalEnergies bring to this partnership will support our shared vision to build industry-leading utility scale and distributed renewables platforms in the USA.”

TotalEnergies already has a strong portfolio in the USA. In large-scale solar, it is developing 8 GW of projects following the acquisition of a projects portfolio from SunChase. In the segment of offshore wind, TotalEnergies will develop 4 GW of projects off the coast of New York and North Carolina.