French energy company TotalEnergies and Japanese oil company Eneos plan to launch a B2B joint venture (JV) aiming for 2 GW of decentralized solar power capacity to be developed onsite across Asia over the next 5 years.
By Asia, they mean Japan, India, Thailand, Vietnam, Indonesia, Philippines, Cambodia, Singapore and Malaysia. Target audience will be from industrial and commercial segments.
Under the agreement for the 50:50 JV, TotalEnergies will leverage its expertise in this space and its global footprint, Eneos will put to use its renewables experience and brand value in Japan. They plan to become one of the most 'competitive' service providers in the region to help their customers lower the costs of decentralized solutions.
The transaction is expected to achieve closure in Q2/2022 post relevant approvals are secured from authorities.
"Through this joint venture we will provide one of the most efficient solutions in Asia to help our B2B customers achieve their sustainability goals while reducing their costs", said Senior Vice President Renewables for TotalEnergies, Vincent Stoquart. TotalEnergies aims to grow its renewable energy generation capacity globally by 2030, up from over 10 GW at the end of 2021.
Recently, the French energy giant purchased the Commercial & Industrial Solutions (CIS) business from US based SunPower in which it already is the majority stakeholder, with a view to expand itself in the B2B space (see SunPower Finds Buyer For CIS Business).
For Eneos, this JV is its 1st overseas renewable energy project using distributed power sources, aligned with its Long-Term Vision to 2040 under which next-generation energy supply and community services including distributed power sources is one of the growth businesses. It currently operates 22 solar power plants in Japan, and is engaged in renewable energy projects in the US, Australia and Vietnam.