French multinational oil and gas company Total has announced two separate acquisitions this week which will serve to expand both its renewable energy and energy efficiency businesses, acquiring an indirect interest in French renewable energy company EREN RE, and acquiring French energy efficiency company GreenFlex.
Both announcements were made on Tuesday, cementing Total’s commitment to diversifying its operations to better suit the current state of the global energy industry.
Total Acquires Interest In EREN RE
The seemingly biggest news was Total’s decision to acquire an indirect interest of 23% in EREN Renewable Energy (EREN RE), a French-based renewable energy company with wind, solar, and hydro assets founded in 2012. Total has subscribed to a capital increase for an amount of €237.5 million — and has walked away from the deal with a possibility to take over control of EREN RE after a period of 5 years.
EREN RE currently has an installed capacity of 650 megawatts in operation or under construction around the world, and is aiming to increase that capacity level to 3 gigawatts within 5 years.
“Total integrates climate challenge into its strategy and is pursuing steady growth in low-carbon businesses, in particular in renewable energy,” said Patrick Pouyanné, Chairman and CEO of Total. “By partnering with EREN RE, we are leveraging a team that has a proven track record in renewable power production, and we are investing in an additional asset to accelerate our profitable growth in this segment, in line with our ambition to become the responsible energy major. So we welcome to Total Eren into the Total Group!”
“This strategic agreement allows us to join forces with a major energy player, with whom we share a strong desire for development in the renewable energy sector and an ambitious long-term vision,” added Pâris Mouratoglou, Chairman of EREN RE. “Our positioning is global and the Total Group’s strength in international markets represents a tremendous accelerator.”
Total Acquires FreenFlex
The news that seems to have flown somewhat under the radar is the parallel Total acquisition of French energy efficiency company GreenFlex, which was founded in 2009 and is one of the leading European energy efficiency companies with more than 600 clients.
Total’s acquisition of GreenFlex is intended to expand the company’s energy efficiency offerings, in addition to the growth of Total’s affiliates BHC Energy in France and Tenag in Germany. Specifically, Total is aiming to offer its customers integrated solutions ranging from optimization of energy needs and sources and finding financing solutions, through to energy management and emissions measurement and reduction.
“Climate challenges are integrated into Total’s strategy, and our aim is to be the responsible energy major,” said Philippe Sauquet, President of Gas, Renewables & Power at Total. “This acquisition in energy efficiency services is fully aligned with this strategy. We are pleased to welcome GreenFlex and its employees to the Group. Total aims to make GreenFlex the linchpin of its growth in the energy efficiency industry in Europe.”
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