This photograph shows the logo of TotalEnergies at the Total Energies refinery site, in Gonfreville-l'Orcher, near Le Havre, northwestern France, on October 5, 2022. Photo by Lou BENOIST / AFP
Paris, France: French energy giant TotalEnergies said Monday that it had signed a deal with Shell to buy its European onshore renewable energy businesses for an undisclosed amount.
Total will acquire around four gigawatts of electricity production, mainly solar and wind power in operation or being built in Italy and the Netherlands, as well as solar, wind and battery storage projects in Italy, Britain and Spain.
The sale is worth several hundred million euros, a source close to the transaction told AFP.
At the same time, TotalEnergies said it would sell a 50 percent stake in a portfolio of wind and solar assets in Germany, Spain, France and Poland to the US investment firm KKR, in a deal that values the portfolio at 1.8 billion euros ($2.1 billion).
The portfolio represents around 1.2 gigawatts of electricity production.
"These two transactions enable us to optimize our capital allocation in renewables while continuing to deploy our Integrated Power strategy," Total's president for gas, renewables and power, Stephane Michel, said in a statement.
The acquisition of Shell's operations will boost Total's renewable energy operations in Europe, where it said it has nearly 10 GW of production sites already built or underway, with a further 27 GW under development.
In late afternoon trading, Total shares were down 0.3 percent in Paris and Shell was down 0.2 percent in London with energy companies lower across the board as oil prices fell.
