(Oil Price) – TotalEnergies is considering selling 50% of some of its solar and wind assets in Europe as part of its strategy to partner with other companies in operating and monetizing its clean energy portfolio, Bloomberg reported on Friday, quoting anonymous sources with knowledge of the plans.
The France-based oil and gas supermajor, which has been developing a global renewable energy portfolio for years, is now working with advisers to potentially market 50% in a combined 1.2 gigawatts (GW) of solar and wind power assets in France, Germany, Spain, and Poland, according to Bloomberg’s sources.
A deal could be worth several hundred million U.S. dollars for TotalEnergies, the sources noted.
Unlike other European majors such as BP and Shell, which have outright reduced spending on renewables, TotalEnergies has a strategy to reach a 12% profitability target for its Integrated Power business.
This means that TotalEnergies would typically divest up to 50% of its renewable assets once they reach commercial operation date (COD) and are de-risked, which allows it “to maximize asset value and manage risks.”
In one of its biggest recent stake sales, TotalEnergies last year agreed to sell 50% of its solar projects portfolio in North America to global investment firm KKR for about $1 billion, as part of the French supermajor’s renewables strategy to divest half of its already operational assets.
TotalEnergies has also moved to sign power purchase deals to provide clean energy to major data center developers and hyperscalers.
In November, the French major signed a 15-year Power Purchase Agreement (PPA) to supply Google data centers in Ohio with renewable electricity from a local TotalEnergies solar farm.
Earlier in November, TotalEnergies signed a power purchase agreement with Data4 to supply renewable electricity to the data center developer’s sites in Spain for 10 years, as the French supermajor looks to boost its integrated power business with the key driver of global electricity demand—data centers and AI infrastructure.
By Michael Kern for Oilprice.com
