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TotalEnergies to Acquire 4GW Renewable Portfolio From Shell, Sell 50% Stake in 1.2 GW Assets to KKR

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French energy major TotalEnergies (TTE) has reached an agreement to acquire British counterpart Shell's (SHEL) onshore renewables portfolio in Europe, the companies said in separate statements on Monday.

The 4-gigawatt assets being acquired comprise of 500 megawatts of solar and wind assets in operation or under construction, primarily in Italy and the Netherlands, with the remaining 3.5 GW pipeline consisting of solar, wind and battery storage projects in Italy, the UK and Spain.

TotalEnergies will be the sole owner of these assets following the completion of the deal, which is expected by the end of this year conditional upon approval by relevant authorities.

"This transaction complements TotalEnergies' power generation activities in these four key markets for the deployment of its integrated power strategy in Europe, in particular its European renewables asset portfolio, which amounts to nearly 10 GW of gross installed capacity or capacity under construction and 27 GW under development," TotalEnergies said in its statement.

Financial details of the transaction were not disclosed.

In a separate transaction, TotalEnergies has agreed to sell a 50% stake in a 1.2 GW portfolio of solar and wind portfolio in Europe to global investment firm KKR, valuing the portfolio at an enterprise value of 1.8 billion euros.

TotalEnergies will retain the remaining 50% ownership of these assets spread across Germany, Spain, France and Poland. Their electricity has already been sold to third parties or will be marketed by TotalEnergies, the company said.

TotalEnergies will continue to operate the assets after completion of the deal, expected in 2026 subject to customary conditions.

The KKR deal follows the company's strategy of selling 50% stakes in developed renewable projects, the statement said.

In its statement, Shell said the deal will allow the group to recycle capital and prioritize areas that are in line with its asset-backed trading strategy.

"Shell is prioritising areas where it has differentiated capabilities in power, including asset-backed trading, increasing access to flexible generation capacity and customer focused energy solutions while remaining disciplined on capital allocation and returns," the company said.

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