TotalEnergies agrees to buy Shell renewables in Europe

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

The French energy company said the deal represents about four gigawatts of electricity production. The assets are mainly solar and wind power in operation or being built in Italy and the Netherlands, as well as solar, wind and battery storage projects in Italy, Britain and Spain.

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 about 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 underway and a further 27 gigawatts under development.