TotalEnergies Sells Stake in Renewables to Fund Gas Assets
TotalEnergies has initiated a strategic move to sell stakes in its renewable energy projects, aiming to raise funds for investments in natural gas assets. The company has received a significant commitment from KKR, a global investment firm focused on energy transition, which finds TotalEnergies' portfolio appealing due to its high-quality assets and long-term contracts.
The transaction involves TotalEnergies selling a 49% stake in natural gas production facilities in Oklahoma, previously owned by Continental Resources and later acquired by Nippon Oil Exploration. This sale is part of TotalEnergies' goal to raise $3.5 billion by the end of the year through similar transactions.
TotalEnergies' renewable energy portfolio in the United States is substantial, with 10 GW of onshore utility-scale solar, wind, and battery storage either installed or under construction. The company's initial target was to reach 35 GW of renewables by the end of 2025, a goal it is now set to surpass by 2035. The portfolio includes six utility-scale solar assets with a combined capacity of 1.3 GW and 41 distributed generation assets totaling 140 MW.
In the first major deal of this strategic shift, TotalEnergies sold a 50% stake in a 1.4 GW North American solar portfolio to KKR for $950 million, valuing the entire portfolio at $1.25 billion including debt. KKR's commitment to energy transition investments, amounting to over $23 billion, makes them an ideal partner for this transaction.
TotalEnergies will continue to own and operate the other half of the portfolio's assets, ensuring operational continuity. The company's long-term goal remains to surpass 100 TWh of net electricity by 2030, demonstrating its commitment to a sustainable energy future.
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