TotalEnergies to Buy 50% Stake in Clearway Energy

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TotalEnergies to Buy 50% Stake in Clearway Energy
26 May 2022
min read

News Synopsis

TotalEnergies has announced that it will acquire a 50% stake in Clearway Energy Group, a US renewable energy company, in a transaction worth approximately $2.4 billion. This is the latest move by a major oil company to expand into the wind and solar energy.

The French energy giant is acquiring the stake from shares of a global infrastructure partner for £ 1.6 billion in cash plus interest in a TotalEnergies unit that owns around half of US residential solar business SunPower Corp.

The Clearway deal expands TotalEnergies' reach in the US green power sector, seeking to move the world's largest energy companies from oil and gas to low-carbon energy under pressure from consumers, investors, and the government. 

TotalEnergies said that Clearway is the fifth largest renewable energy player in the United States, with 7.7 gigawatts of wind and solar power and more than three times its renewable energy and storage project pipeline. The San Francisco-based company employs 760 people.

Oil companies promise investors that they can offset near-record hydrocarbon profit incentives while continuing to promote renewables that help reduce harmful greenhouse gas emissions. Last year, TotalEnergies announced that it would pay $2.5 billion for a 25% stake in solar energy giant Adani Green Energy Ltd. It is one of India's largest infrastructure conglomerates.

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