TotalEnergies Sells Renewable Projects to Crédit Agricole Assurances

French renewable energy major TotalEnergies has announced that it is selling 50% of a 234 MW portfolio of renewable projects to Crédit Agricole Assurances as part of its strategy of profitable growth in renewable energies.

The official statement from TotalEnergies reveals that the portfolio being sold includes 23 solar power plants with a capacity of 168 MW and 6 wind farms with a capacity of 67 MW. Of the 29 power plants in the portfolio, 25 of 180 MW are already operational and the four others of 54 MW will be commissioned in the first half of 2023.

TotalEnergies held that this transaction implies an enterprise value of the portfolio of $300 million (100%) equivalent to a multiple of 16 x EBITDA.

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Crédit Agricole Assurances claims to be France’s leading insurer that brings together the insurance subsidiaries of Crédit Agricole. The partial sale to Crédit Agricole Assurances allows TotalEnergies to accelerate project cash flows and improve the return on invested capital, in line with its business model for renewable energy development.

The teams of TotalEnergies will continue to ensure the asset management, operation and maintenance of the 29 power plants. They will provide enough energy for 200,000 people and will prevent the emission of some 96,000 tons of CO2 per year for thirty years.

Vincent Stoquart, Senior VP, Renewables, TotalEnergies, said, “This partial sale demonstrates the strength of our business model, which ensures a return on invested capital in renewable energies of more than 10%. We are pleased to partner with Crédit Agricole Assurances and support its investment in the energy transition.” He also mentioned that TotalEnergies intends to continue its development in France with aim to reach 4 GW of RE capacity by 2025.

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“In line with the Crédit Agricole Group’s climate commitments, this transaction will increase our investments in renewable energies and help us reach an installed capacity of 14 GW by 2025,” said Florence Barjou, Head of Investments, Crédit Agricole Assurances.

Total Energies is on a global expansion spree. At the end 2022, its gross renewable electricity generation installed capacity is 17 GW. Recently, it bagged a project to establish New Zealand’s first big 100 MW and 200 MWh Ruakākā battery contract which is worth $NZ186 million through its subsidiary Saft.