TotalEnergies Strengthens German Renewable Portfolio with €1.57B Deal

TotalEnergies  has announced two strategic moves in its renewable energy division: the acquisition of VSB Group, a German renewable energy developer, and the sale of a 50% stake in a U.S. renewable portfolio to funds managed by Apollo.

The €1.57 billion acquisition of VSB Group strengthens TotalEnergies' position in Germany, adding 18 GW of wind, solar, and battery storage pipeline to its portfolio. This follows recent acquisitions like Kyon Energy and Quadra Energy, consolidating its top-three renewable energy position in France and reinforcing its German Integrated Power value chain.

In the U.S., TotalEnergies will sell half its interest in a 2 GW portfolio of solar and battery energy storage projects in Texas, including Danish Fields, Cottonwood, and Hill Solar I. The sale will provide $800 million in cash, enhancing the profitability of TotalEnergies' Integrated Power business while allowing it to retain operational control.

These transactions align with the company's strategy of capital recycling in renewable energy to meet its 12% profitability target for the Integrated Power business.

"We welcome the 500 employees of VSB Group, whose expertise will drive our European strategy, and look forward to partnering with Apollo in Texas," said Stéphane Michel, President of Gas, Renewables, and Power at TotalEnergies.

Source: businesswire.com