Tuesday, 19 September 2017
The oil and gas giant Total has acquired GreenFlex, a French company specializing in energy efficiency while also picking up a 23% stake in EREN RE for $285 million.
The agreement with EREN RE gives Total the possibility to take control of the company after a period of 5 years. EREN RE has developed a diversified asset base (notably wind, solar and hydro) representing a global installed gross capacity of 650 MW in operation or under construction.
The capital increase subscribed by Total will enable EREN RE to cover its financing needs to accelerate its development in the coming years.
Total’s stake in EREN RE complements the Group’s portfolio of renewable energy businesses. In particular, EREN RE, which will be renamed Total Eren upon completion of the transaction, will allow Total to enter the wind power generation segment. Development of EREN RE’s solar farm business will be mainly focused on emerging countries where the demand for electricity is growing.
“Total integrates climate challenge into its strategy and is pursuing steady growth in low-carbon businesses, in particular in renewable energy. 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!” said Patrick Pouyanné, Chairman and CEO of Total.
Pâris Mouratoglou, Chairman of EREN RE, said: “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. Our positioning is global and the Total Group’s strength in international markets represents a tremendous accelerator .”
The acquisition of GreenFlex, which has over 600 clients, will accelerate the expansion of Total’s energy efficiency offering. Total intends to offer its customers integrated solutions, from optimization of energy needs and sources and finding financing solutions 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. This acquisition in energy efficiency services is fully aligned with this strategy,” said Philippe Sauquet, President of Gas, Renewables & Power at Total. “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.”
The transaction is expected to close in the fourth quarter of 2017, once it has been approved by the relevant regulatory authorities.
The deals come just one month after Total bought Maersk’s oil and gas business in a $7.5 billion deal to boost output at its core division.