- TotalEnergies and CDV have announced a 33:66 renewables joint venture in Brazil
- The French company will have an option to acquire an additional 15% in the JV after 5 years
- The JV will target to build 12 GW renewables portfolio of wind and solar energy in the Latin American country
French energy behemoth TotalEnergies has announced a renewables joint venture (JV) with Brazilian renewable energy developer Casa dos Ventos (CDV) to build 12 GW portfolio of wind and solar power capacity in Brazil.
Currently the portfolio of the JV, owned by TotalEnergies and CDV in a 34:66 ratio, comprises 1.6 GW of solar along with 2.8 GW onshore wind projects under ‘well advanced development’. It also includes 700 MW operational onshore wind and 1 GW onshore wind facilities under construction.
The JV will have the right to acquire current and new projects developed by CDV as they reach execution stage with a target of at least 6 GW that the Brazilian company will continue to expand in the future. After 5 years, TotalEnergies will have an option to acquire and additional 15% in the JV.
For now, the French company will complete the acquisition by paying $550 million in cash and up to $30 million in earn-out.
For CDV that holds approximately 20 GW wind and solar project portfolio in Brazil that’s currently under development, to the partnership it brings its knowledge of the Brazilian market where it has developed ‘25% of the onshore wind assets in operation’ at present. It also transitions from a developer to a producer business model.
TotalEnergies says it will support the JV with its global presence in the corporate power purchase agreement (PPA) market and strong balance sheet.
“This market fits our strategy of taking advantage of the growth of the deregulated power markets, which is crucial to the energy transition,” said Chairman and CEO of TotalEnergies, Patrick Pouyanné.
TotalEnergies aims to grow its gross production capacity from renewables and storage to 35 GW by 2025, and scale it up to 100 GW by 2030, up from 12 GW wind and solar in operation, construction and development at present.
To achieve the goal, the French giant is expanding its renewables portfolio globally. Before CDV, it acquired 50% stake in US based Clearway Energy from GIP that holds s 25 GW pipeline (see TotalEnergies Acquires 50% Of Clearway Energy).
It also picked up 25% stake in Adani’s green hydrogen vehicle ANIL in India that targets to produce 1 million to per annum (MTPA) with 30 GW new renewable energy production (see TotalEnergies & Adani’s Green Hydrogen Plans).