TotalEnergies has signed agreements with Global Infrastructure Partners (GIP) to acquire 50% of Clearway Energy Group (CEG). This constitutes its largest acquisition in the renewable energy sector in the United States.
CEG is a developer of renewables projects and controls and owns 42% of economic interest of its listed subsidiary, Clearway Energy Inc. (CWEN), into which projects are dropped when they reach commercial operation.
Clearway has 7.7 GW of wind and solar assets in operation through its CWEN subsidiary and has a 25 GW pipeline of renewable and storage projects, of which 15 GW are in an advanced stage of development. Headquartered in San Francisco, Clearway has approximately 760 employees.
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 Corp. The transaction takes into account valuations of $35.1 per share for CWEN and $18 per share for SunPower.
TotalEnergies welcomes GIP as an equity partner in SunPower, which offers fully integrated solar, storage, home energy and financing solutions.
“We are delighted with this partnership with Global Infrastructure Partners, which is a major player in renewables, particularly in the United States,” says Patrick Pouyanné, chairman and CEO of TotalEnergies. “It allows TotalEnergies 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. 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.”
As part of this partnership, TotalEnergies will contribute to enhance Clearway’s growth prospects by providing CWEN in the U.S. 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’ 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.
“We are extremely pleased to partner with TotalEnergies to continue leading the energy transition in the U.S.,” comments Adebayo Ogunlesi, GIP’s chairman and CEO. 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.”
“At the same time, GIP’s investment in SunPower is our initial commitment in the distributed generation space, which we believe will provide critical solutions to facilitate the nation’s clean energy future Ogunlesi. “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 U.S.”
Both transactions are subject to customary conditions, including receipt of requisite regulatory approvals.