TotalEnergies has signed up to acquire a 100% stake in German renewable energy company VSB
It will expand the company’s renewable energy pipeline across wind, solar PV and battery storage by over 18 GW
TotalEnergies has also sold off 50% of its stake in a 3 solar-and-storage project portfolio in Texas, US to Apollo
French energy major TotalEnergies is expanding its project pipeline of wind, solar PV and battery storage by more than 18 GW with the complete acquisition of the Germany-headquartered European vertically integrated renewable energy developer VSB Group from Swiss asset manager Partners Group for €1.57 billion ($1.6 billion).
It has also announced bringing in a partner for its Texas-located 2 GW solar and storage portfolio.
The German company operates in 6 European countries: Germany, France, Poland, Finland, Italy and Croatia. A major chunk of its more than 18 GW pipeline is located across Germany, Poland and France.
VSB has more than 475 MW capacity under operation or construction, mainly in Germany and France, as an independent power producer (IPP). Joining the French group with its 500 employees will strengthen it financially while exposing it to the global network of TotalEnergies.
For TotalEnergies, this acquisition will expand the company’s presence in the 6 European markets of the VSB, and contribute to its goal of achieving 100 GW of renewable energy capacity by 2030. It will strengthen the group’s Integrated Power Value Chain in Germany which represents half of VSB’s portfolio.
TotalEnergies has also announced a 50% stake sale in the US for its 1.7 GW of solar and 300 MW battery energy storage system (BESS) portfolio in Texas. The buyers are funds managed by the American asset management firm Apollo Global Management.
TotalEnergies will retain the remaining 50% stake in the assets. It will also remain on board as the operator of 720 MW solar and 225 MW BESS project Danish Fields, 455 MW solar and 225 MWh BESS project Cottonwood, and 400 MW Hill Solar I project.
The French giant earns $800 million in cash for this sale, comprising $550 million equity from Apollo and a $250 million shareholder loan refinancing.
"In line with our strategy, these transactions will enable us to optimize our capital allocation in renewables and contributes to improve the profitability of our Integrated Power business,” said TotalEnergies President of Gas, Renewables and Power, Stéphane Michel.
The French energy group targets to expand its gross renewable electricity generation installed capacity to 35 GW in 2025, up from over 24 GW reached by the end of 2024, and more than 100 TWh of net electricity production by 2030.
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