TotalEnergies, the French energy conglomerate, is reportedly considering the sale of a 50% stake in its extensive portfolio of renewable projects spanning Europe and the United States, according to sources familiar with the matter. The company is said to be in the initial stages of sounding out advisers for this strategic move, which would involve wind and solar power assets located in the U.S., Spain, Portugal, France, and Greece.
Valued at approximately $2.5 billion in total, the portfolio's sale is anticipated to result in a series of transactions, potentially involving multiple buyers, as per insider information. The decision aligns with a broader trend in the renewable energy sector, where companies, including utilities and oil firms like Enel, Repsol, and Iberdrola, have opted to sell stakes in existing wind and solar farms to fund new ventures. Rising raw material costs and increased capital expenditures have contributed to this trend on a global scale.
In December, TotalEnergies executed a notable transaction, selling a 22.5% stake in an offshore wind farm to Thailand's PTT Exploration and Production (PTTEP) for a substantial sum of 522 million pounds ($660.54 million). This move marked a strategic financial maneuver for TotalEnergies, enabling them to maintain a competitive position in the dynamic renewable energy landscape.
Notably, TotalEnergies stands out in the industry with a significantly higher low-carbon energy generation capacity compared to its peers. In a strategic move last year, the company took full control of the renewable energy firm Eren for a total consideration of 3.8 billion euros ($4.10 billion), including assumed debt. This recent exploration of selling a stake in its renewable portfolio suggests the company's ongoing commitment to optimizing its portfolio and capitalizing on emerging opportunities in the ever-evolving renewable energy market.