TotalEnergies agrees Shell Europe renewables deal

TotalEnergies said Monday it had signed a deal to buy Shell's European onshore renewable energy businesses for an officially undisclosed amount.

The French energy company said the acquisition covers around four gigawatts of electricity production, mainly solar and wind power in operation or under construction in Italy and the Netherlands. It also includes solar, wind and battery storage projects in Italy, Britain and Spain.

A person close to the transaction told AFP the sale was worth several hundred million euros.

TotalEnergies also said it would sell a 50 percent stake in a separate portfolio of wind and solar assets in Germany, Spain, France and Poland to US investment firm KKR. TotalEnergies said that deal values the portfolio at 1.8 billion euros, or $2.1 billion, and represents around 1.2 gigawatts of electricity production.

Stephane Michel, TotalEnergies' president for gas, renewables and power, said the two transactions would help the company optimise capital allocation in renewables while continuing its Integrated Power strategy.

TotalEnergies said the Shell acquisition would expand its renewable energy operations in Europe, where it has nearly 10 gigawatts of production sites already built or under construction and a further 27 gigawatts under development.

In late afternoon trading, TotalEnergies shares were down 0.3 percent in Paris and Shell shares were down 0.2 percent in London, with energy companies lower as oil prices fell.