Agreement in the USA between TotalEnergies and Clearway on Renewable Energy

The renewable energy market in the United States is experiencing a moment of intense productivity, not only in terms of energy production, but also in agreements between companies active in the field of renewable energy, such as wind and solar , to improve the own assets and share funding for new facilities and better logistics.

This is the case of TotalEnergies which announces the signing of agreements with Global Infrastructure Partners (GIP) to acquire 50% of Clearway Energy Group (CEG), the 5th US player in the renewable energy sector. This constitutes its largest acquisition in the renewable energy sector in the United States, one of the top 3 renewable markets in the world.

With this transaction, TotalEnergies is further accelerating its growth in the renewable energy sector by partnering with GIP, a leading global infrastructure fund.

CEG is a developer of renewable energy projects and controls and owns a 42% economic interest in its publicly traded subsidiary, Clearway Energy Inc. (CWEN), in which projects are abandoned when they reach commercial operation.

With this acquisition, TotalEnergies is establishing a leading position in the renewable energy and storage market in the United States.

Clearway has 7.7 GW 1 of wind and solar assets in operation through its listed subsidiary CWEN and has a 25 GW pipeline of renewable and storage projects, of which 15 GW are in an advanced stage of development. Headquartered in San Francisco, Clearway has approximately 760 employees.

As part of this transaction, GIP will receive $1.6 billion in cash and a 50% stake less one stock in TotalEnergies subsidiary which owns 50.6% of SunPower Corporation (NASDAQ:SPWR), a leader in residential solar in the United States.

The transaction takes into account valuations of $35.1 per share for CWEN and $18 per share for SunPower.

Under this partnership, TotalEnergies will help improve Clearway's growth prospects by providing CWEN in the United States with access to its energy trading capabilities and will prioritize it in curtailing its developed projects.

The acquisition brings TotalEnergies' renewable portfolio in the United States to more than 25 GW and contributes to the goal of the United States accounting for at least 25% of the Company's global target of 100 GW by that time.

This transaction complements the portfolio that TotalEnergies has been building in the United States since early 2021.

In utility-scale solar , TotalEnergies is already developing 8 GW of projects following its acquisition of a portfolio of projects from SunChase, its partnership with Hanwha Energy and its recent acquisition of Core Solar.

In offshore wind, TotalEnergies will develop 4 GW of projects off the coasts of New York and North Carolina after winning tenders.

Finally, TotalEnergies welcomes GIP as an equity partner in SunPower.

SunPower is the second largest residential solar company in the United States, providing customers with fully integrated solar, storage, home energy and financing solutions.

TotalEnergies and GIP are well positioned to jointly support SunPower management's growth strategy.

“We are pleased about this partnership with Global Infrastructure Partners, which is a major player in renewable energy, particularly in the United States.

It enables TotalEnergies to expand into the US market, one of the most dynamic in the world, benefiting from operational assets and a high-quality 25 GW pipeline, across wind, solar and storage, with broad geographic coverage with a presence in 34 States.

This transaction fits perfectly with our strategy of making renewable electricity one of our key growth drivers alongside liquefied natural gas which we recently strengthened with the launch of the Cameron Extension.

This demonstrates our priority in accelerating the company's transformation to become a sustainable and profitable multi-energy company,” said Patrick Pouyanné, President and CEO of TotalEnergies.

“We are extremely pleased to partner with TotalEnergies to continue leading the energy transition in the United States.

We are proud of the growth and results achieved by the Clearway team since our initial investment in 2018 and are confident that with TotalEnergies as a partner, Clearway will be able to

The growth, capabilities and ambition that GIP and TotalEnergies bring to this partnership will support our shared vision of building renewable energy platforms in the United States,” said Adebayo Ogunlesi, President and CEO of Global Infrastructure Partners.

Source: Total