TotalEnergies to Acquire RE Firm VSB for $1.65 Billion

TotalEnergies SE has signed an agreement to buy VSB Group for EUR 1.57 billion ($1.65 billion), expanding its wind, solar and battery storage footprint in Europe.

Concurrently the French energy major entered another transaction divesting a 50 percent stake in a portfolio of solar and battery storage projects with two gigawatts (GW) of aggregate capacity in Texas. TotaEnergies expects $800 million in proceeds, according to a statement by the company on Wednesday.

TotalEnergies said it is implementing “capital recycling” with the new deals.

VSB, founded 1996 and acquired 2020 by Swiss asset manager Partners Group, has developed over 2.3 gigawatts (GW) of renewable energy-based generating capacity, while its managed assets total three GW, according to the owner.

“VSB has over 475 MW of renewable capacity in operation or under construction mainly in Germany and France, and a pipeline of 18 GW of wind, solar and battery storage technologies mainly across Germany, Poland and France”, TotalEnergies noted. “This transaction will strengthen TotalEnergies Integrated Power value chain in Germany, which represents half of VSB’s portfolio.

“This complements the recent acquisitions of battery storage developer Kyon Energy and energy manager Quadra Energy, as well as TotalEnergies’ major offshore wind positions in northern Germany.

“In addition, this transaction will reinforce TotalEnergies’ top 3 position in renewable power in France”.

The acquisition is subject to merger clearance by regulators, TotalEnergies said.

Meanwhile the divestment to New York City-based Apollo Global Management Inc. consists of three solar projects with a total capacity of 1.7 GW and two battery storage projects with a total capacity of 300 MW.

“Following this transaction subject to certain conditions precedent, TotalEnergies will retain a 50 percent stake and remain the operator of the assets, which are Danish Fields, Cottonwood, and Hill Solar I”, TotalEnergies said.

“The electricity production of these projects has either already been sold to third parties or will be commercialized by TotalEnergies”.

Separately TotalEnergies secured a 300-megawatt (MW) solar project in Saudi Arabia along with local company Aljomaih Energy and Water Co., in conjunction with the visit of French President Emmanuel Macron to the kingdom.

Expected to be connected to the grid 2026, the Rabigh 2 solar project has a 25-year purchase agreement with Saudi Power Procurement Co.

“This renewable project is a new milestone for TotalEnergies in Saudi Arabia where TotalEnergies is currently building the 119 MW Wadi Al Dawasir solar power plant, which will start operation in early 2025”, TotalEnergies said in a press release Tuesday.

In another Saudi undertaking, TotalEnergiess, Saudi Arabian Oil Co. (Aramco) and Saudi Investment Recycling Co. agreed to explore building a sustainable aviation fuels plant in the kingdom.

“The assessment will focus on harnessing innovative engineering and technology solutions that seek to recycle and process local waste or residues from the circular economy (used cooking oils and animal fats) to produce SAF”, Aramco said in a statement Tuesday.

Aramco president and chief executive Amin H. Nasser said, “As Saudi Arabia’s tourism and aviation sectors expand, this could potentially benefit both domestic and international airlines”.

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