TotalEnergies (TTE) and Casa dos Ventos (CDV) have announced a joint venture for the development of renewable energy projects in Brazil.
The joint venture – CDV with a 66% stake and TTE with a 34% interest – will build and operate the renewable portfolio of CDV which currently includes 700MW of onshore wind capacity in operation, 1GW of onshore wind under construction, 2.8GW of onshore wind and 1.6GW of solar projects under advanced development.
TotalEnergies will pay a cash consideration of $550 million (£476m) and up to $30 million (£26m) in earn-out to complete the acquisition and will have the option to acquire an additional 15% equity share in the joint venture after five years.
The joint venture will also have the right to acquire the current and new projects that are or will be developed by CDV as they reach execution stage.
Patrick Pouyanné, Chairman and CEO of TotalEnergies said: “With this transaction, TotalEnergies acquires not less than a leading position in the Brazilian renewable energy market, one of the most dynamic merchant markets in the world. This market fits our strategy of taking advantage of the growth of the deregulated power markets, which is crucial to the energy transition.
“With a total of 12GW in operation, construction and development, both wind and solar, this transaction is an additional step in TotalEnergies ambition to reach 100GW of renewable production by 2030 and in its transformation into a sustainable and profitable multi-energy company.”