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TotalEnergies Buys Shell's European Onshore Renewables Portfolio, Sells Assets to KKR

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TotalEnergies Buys Shell's European Onshore Renewables Portfolio, Sells Assets to KKR

TotalEnergies (TTE.PA, TTE.L) is advancing its integrated power strategy in Europe with the signing of separate deals with Shell (SHEL.L, SHELL.AS) and KKR concerning onshore renewable assets in the region.

The French energy company disclosed on Monday that it is taking over the onshore renewables business in Europe of British peer Shell. The transaction covers 500 megawatts of solar and wind assets primarily located in Italy and the Netherlands, as well as 3.5 gigawatts of solar, wind and battery storage projects planned in Italy, the UK, and Spain.

"The acquisition of Shell's onshore renewables assets in Europe strengthens our power generation positions in selected key deregulated markets across Europe and supports the implementation of our integrated strategy across the electricity value chain," said Stéphane Michel, TotalEnergies president for gas, renewables and power.

Shell, meanwhile, said the deal is in line with its capital allocation strategy of diverting resources to focus areas.

Separately, TotalEnergies is teaming up with global investment firm KKR on a 1.2-gigawatt portfolio of solar and wind assets across Germany, Spain, France and Poland, through the sale of a 50% stake in the portfolio. Valued at 1.8 billion euros, the portfolio will be equally owned by TotalEnergies and a KKR-managed insurance account following the transaction.

TotalEnergies said the deal showcases its annual capacity to partially farm down its renewable assets. It will continue to operate the assets and market electricity from the projects amid the transaction. "In addition, with this agreement with KKR, we demonstrate once again our ability to implement our business model in renewables in order for Integrated Power to reach a ROACE of 12% by 2030," Michel added.

Completion of both transactions is expected within 2026, subject to customary closing conditions, including receipt of approvals from relevant regulators.

In early morning trading, TotalEnergies shares declined almost 1% in Paris and marginally in London, while Shell shares decreased by more than 1% in both London and Amsterdam.

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