TotalEnergies to buy Shell’s wind, solar business in Europe

French energy giant TotalEnergies announced Monday it has signed a deal to acquire Shell's European onshore renewable energy businesses for an undisclosed sum. This strategic move significantly bolsters TotalEnergies' presence in the European renewable energy market.

The acquisition encompasses around four gigawatts of electricity production capacity. These assets are primarily solar and wind power projects located in Italy and the Netherlands, some of which are already in operation or under construction. The deal also includes projects for solar, wind, and battery storage in Italy, Britain, and Spain, further diversifying TotalEnergies' renewable portfolio.

In a parallel transaction, TotalEnergies is divesting a 50% stake in a separate portfolio of wind and solar assets to the US investment firm KKR. This portfolio, spanning Germany, Spain, France, and Poland, is valued at 1.8 billion euros ($2.1 billion) and represents approximately 1.2 gigawatts of electricity production capacity.

Stephane Michel, Total's president for gas, renewables, and power, stated that these two transactions are designed to optimize capital allocation within the company's renewables sector while advancing its Integrated Power strategy. The acquisition of Shell's operations adds to TotalEnergies' existing renewable energy capacity in Europe, which already stands at nearly 10 GW built or under construction, with an additional 27 GW in development.

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These two transactions enable us to optimise our capital allocation in renewables while continuing to deploy our Integrated Power strategy.