Thursday 26 May 2022

TotalEnergies to buy 50% stake in US renewable giant Clearway Energy

TotalEnergies to buy 50% stake in US renewable giant Clearway Energy

TotalEnergies has agreed to buy 50% of stake in Clearway Energy Group (CEG), the fifth-largest renewable energy company in the US.

It has signed agreements with Global Infrastructure Partners (GIP) towards the purchase CEG, which is TotalEnergies' largest acquisition in renewables in the US.

CEG is a developer of renewables projects and controls and owns 42% of economic interest in its listed subsidiary, Clearway Energy Inc (CWEN), into which projects are dropped when they reach commercial operation.

Clearway has 7.7GW of solar and wind assets in operation through its listed subsidiary CWEN and a 25GW pipeline of renewable and storage projects, out of which 15GW of capacity is in the advanced stages of development.

Under the partnership, TotalEnergies will contribute to enhance Clearway’s growth prospects by providing CWEN in the US with access to its power trading capabilities and will give it priority on the farm down of its own developed projects.

The acquisition brings TotalEnergies' US renewable portfolio to more than 25GW and contributes to its objective to ensure the US accounts for at least 25% of its global target of 100GW by 2030.

Patrick Pouyanné, Chairman and CEO of TotalEnergies said: “We are delighted with this partnership with Global Infrastructure Partners, which is a major player in renewables, particularly in the United States. It allows TotalEnergies to scale up in the US market, one of the most dynamic in the world, benefiting from operating assets and a 25GW high quality pipeline, in wind, solar and storage, with a wide geographic coverage with a presence in 34 states.

“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. It illustrates our priority to accelerate the transformation of the company to become a sustainable and profitable multi-energy company.”

The deal is subject to regulatory approvals.

Written by

Bruna Pinhoni

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