TotalEnergies SE agreed to buy a gas-fired power plant in the UK from EIG Global Energy Partners for an enterprise value of £450 million ($575 million) to complement its renewable energy assets in the country.
The acquisition of West Burton B power station, which comprises three combined-cycle gas turbines with a total output of 1.3 gigawatts and a small battery storage, will strengthen TotalEnergies’s trading capacity in the UK, the French company said in a statement Wednesday.
Given the size of its renewables portfolio, the company plans to divest half of the asset acquired from EIG.
The transaction is the latest sign the French oil and gas giant wants to keep diversifying into the electricity business amid expectations that power demand for everything from transport to heating will climb faster than hydrocarbon usage.
The deal, which is subject to regulatory approvals, will contribute to TotalEnergies’s goal of a return on average capital employed of about 12% for its integrated power business in 2028, the company said.
