TotalEnergies expands European renewables with Shell purchase and KKR asset sale

TotalEnergies announced that it has signed an agreement to purchase Shell’s European on-shore renewable business, which includes roughly four gigawatts of operating or under-construction solar and wind capacity in Italy and the Netherlands, plus additional solar, wind and battery projects in Italy, Britain and Spain. The purchase price was not disclosed, though a source estimates the value at several hundred million dollars.

In a concurrent transaction, Total will transfer a 50 % interest in a portfolio of wind and solar assets located in Germany, Spain, France and Poland to the U.S. investment firm KKR, valuing that portfolio at €1.8 billion and representing about 1.2 GW of generation. Stephane Michel, Total’s president for gas, renewables and power, said the two moves allow the company to optimise its renewable capital deployment while pursuing its Integrated Power strategy.

The acquisitions raise Total’s European renewable capacity to nearly 10 GW of built or under-construction sites, with an additional 27 GW in development. In market reaction, Total shares fell 0.3 % in Paris and Shell slipped 0.2 % in London as energy stocks retreated on lower oil prices.