TotalEnergies is to form a new joint venture to develop and operate wind and solar assets held by Brazil’s Casa dos Ventos.
TotalEnergies (PARIS:TTE) will pay a cash consideration of $550 million and up to $30 million in earn-out to complete the acquisition, in exchange for around one-third (34%) of the Brazil-based joint venture (JV).
Casa dos Ventos (CDV) will hold the remaining 66%.
In addition, TotalEnergies will have the option to acquire an additional 15% equity share in the JV after 5 years.
The developer’s portfolio includes 700 MW of operational onshore wind capacity, 1 GW of onshore wind under construction, and a combined 2.8 GW of onshore wind and 1.6 GW of solar projects under “well advanced development”, with completion dates in the next five years.
The newly formed venture will also have the right to acquire current and new projects being developed by CDV as they reach execution stage, accessing an additional portfolio of at least 6 GW, TotalEnergies said.
The integrated energy group said it would be able to drive growth through its global presence in the corporate PPA market, global purchasing power and trading expertise, while its balance sheet would enable the JV to improve its financing cost.
CDV, which has developed 25% of the onshore wind assets in operation today in Brazil, will bring its knowledge of the Brazilian market and a very high-quality portfolio, as it shifts from a pure-play developer to a producer business model.
“After Adani Green in India and Clearway in the United States, I am delighted with this new major partnership in Brazil, with Casa dos Ventos, the leader in onshore wind energy. With this transaction, TotalEnergies acquires not less than a leading position in the Brazilian renewable energy market, one of the most dynamic merchant markets in the world. This market fits our strategy of taking advantage of the growth of the deregulated power markets, which is crucial to the energy transition,” said TotalEnergies chairman and CEO Patrick Pouyanné.
“With a total of 12 GW in operation, construction and development, both wind and solar, this transaction is an additional step in TotalEnergies ambition to reach 100 GW of renewable production by 2030 and in its transformation into a sustainable and profitable multi-energy company.”
“The partnership between Casa dos Ventos and TotalEnergies was structured to maximize the complementarities and synergies between the companies. In addition to its financial strength, TotalEnergies’ global footprint will contribute to the expansion of our client portfolio and enhance our knowledge in new fields of the energy transition. We are confident that this partnership positions us in a strategic role to lead the sustainable energy agenda in Brazil,” said Mario Araripe, founder and president of Casa dos Ventos.
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