PARIS - TotalEnergies (EPA:TTEF) (Paris:TTE) (LSE:TTE) (NYSE:TTE) has announced a strategic expansion in Germany through the acquisition of VSB Group, a renewable energy developer, for €1.57 billion. Concurrently, the energy giant has divested 50% of a 2 GW renewable portfolio in the United States to Apollo (NYSE: APO) for $800 million.
The VSB Group purchase bolsters TotalEnergies' presence in the European renewable sector, adding a significant pipeline of 18 GW in wind, solar, and battery storage technologies. VSB, with a 30-year history and 500 employees, contributes a substantial operational or under-construction capacity of 475 MW, mainly in Germany and France.
In the US, the partial sale involves three solar projects totaling 1.7 GW and two battery storage projects of 300 MW in Texas. TotalEnergies retains a 50% interest and operational control over these assets, which are already contracted or will be marketed by the company.
Stéphane Michel, president of Gas, Renewables and Power at TotalEnergies, stated, "These transactions will enable us to optimize our capital allocation in renewables and contributes to improve the profitability of our Integrated Power business."
TotalEnergies' approach includes selling up to half of its wholly owned renewable assets post-commercial operation to maximize value and manage risks. By the end of 2024, the company's gross renewable electricity generation capacity had surpassed 24 GW, with ambitions to reach 35 GW by 2025 and over 100 TWh of net electricity production by 2030.
These moves align with TotalEnergies' strategy to deliver clean firm power, combining renewables with flexible assets to meet its 12% profitability target for the Integrated Power business. The completion of the VSB Group acquisition is pending regulatory approvals.
This article is based on a press release statement from TotalEnergies.
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