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TotalEnergies to acquire 50% stake in renewables company Clearway

TotalEnergies to acquire 50% stake in renewables company Clearway
TotalEnergies to acquire 50% stake in renewables company Clearway
  • The oil group is looking to expand into the fast-paced renewable-resource sector.
  • Clearway Energy owns a 25 GW pipeline of storage and renewable projects as well as a 7.7 GW of solar and wind assets.

The French oil and gas major TotalEnergies SE is reportedly planning to acquire half of Clearway Energy Group, the fifth-biggest U.S. renewable energy company. According to reliable sources, the oil group is looking to expand into the fast-paced renewable-resource sector and branch out from activities based on hydrocarbon.

TotalEnergies cited that it has formed a strategic alliance with Global Infrastructure Partners, an independent infrastructure investor. As part of the deal, GIP will obtain USD 1.6 billion in cash along with 50% minus 1 interest in the TotalEnergies’ unit which holds 50.6% ownership in SunPower Corporation, a solar power company.

The oil behemoth added that this transaction accounts for USD 18 per share valuation for SunPower and USD 35.1 per share for Clearway Energy.

Patrick Pouyanné, the Chairman and CEO at TotalEnergies stated that the partnership with GIP allows the company to ramp up in the U.S. market as well as benefit from operating assets along with a 25 GW superior pipeline in storage, solar, and wind while covering a wider geographic range with establishing their presence in 34 states.

Sources close to the company stated that Clearway Energy owns a 25 GW pipeline of storage and renewable projects as well as a 7.7 GW of solar and wind assets in operation through CWEN, its listed subsidiary.

Meanwhile, TotalEnergies has reported a dramatic increase in its quarterly profit, supported by a surge in gas and oil prices amidst Russia’s invasion of Ukraine.

Meanwhile, another oil major Shell is reportedly in advanced discussions with a group of Indian energy companies to sell its stake in a prominent liquefied natural gas plant in Russia. The British company had abandoned the plant following the Russia-Ukraine conflict.

Source Credit:

https://money.usnews.com/investing/news/articles/2022-05-25/totalenergies-agrees-to-buy-50-of-u-s-renewables-company-clearway

 

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Vinisha Joshi

Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for cuereport.com and a few other distinguished news platforms, pertaining to business and finance.