TotalEnergies is advancing its growth in the renewable energy sector by acquiring Total Eren’s remaining shares, elevating its stake from nearly 30% to 100%. The integration of Total Eren teams into TotalEnergies’ Renewables business unit marks a significant step in this direction.
With a valuation of €3.8 billion, the acquisition of 70.8% of Total Eren entails an investment of approximately €1.5 billion for TotalEnergies. This move is expected to bolster TotalEnergies’ Integrated Power Net Operating Income by around €160 million and CFFO by around €400 million in 2024.
Total Eren brings substantial renewable energy assets to the table, boasting 3.5 GW of operational capacity worldwide, along with a pipeline of over 10 GW of solar, wind, hydroelectric, and storage projects across 30 countries, including 1.2 GW in advanced stages of development or construction. By leveraging Total Eren’s 2 GW operational assets in merchant countries like Portugal, Greece, Australia, and Brazil, TotalEnergies aims to strengthen its integrated power strategy. Additionally, the acquisition will provide TotalEnergies with access to Total Eren’s expertise in developing projects in countries such as India, Argentina, Kazakhstan, and Uzbekistan.
Apart from being a renewable energy producer, Total Eren has been at the forefront of pioneering green hydrogen projects across regions like North Africa, Latin America, and Australia. These endeavours will now continue under a new partnership called “TEH2,” where TotalEnergies holds an 80% stake and EREN Group owns the remaining 20%.
“Our partnership with Total Eren has been very successful, as shown by the size and quality of the renewables portfolio. With the acquisition and integration of Total Eren. we are now opening a new chapter of our development as the expertise of its team and its complementary geographical footprint will strengthen our renewable activities and our ability to build a profitable integrated power player,” said Patrick Pouyanné, Chairman & CEO of TotalEnergies. “I want to thank Total Eren’s founders, Pâris Mouratoglou and David Corchia, as well as their teams, for their incredible development work, which led to this successful achievement. Today, we are welcoming Total Eren’s experienced teams, who will continue their remarkable work with the added resources of a bigger company.”
Pâris Mouratoglou, Chairmanof Total Eren, stated: “With Total Eren, we have successfully created a best-in-class renewable energy player. I want to thank BPI France, Tikehau Capital, NextWorld and Peugeot Invest, for their constant support since 2015. I also want to thank Patrick Pouyanné for his trust and for the spirit of partnership that has led to such achievements with TotalEnergies over the last five years.”
David Corchia, CEO of Total Eren, added: “This success belongs first to Total Eren’s teams around the globe. They will undoubtedly make a huge contribution to TotalEnergies’ highly ambitious plan in the renewable sector. Together with Pâris Mouratoglou, we will continue creating and developing new companies for the energy transition and the planet’s decarbonisation, as well as, within our new promising partnership with TotalEnergies, the development of giant green hydrogen production projects worldwide.”