TotalEnergies to buy Shell’s European renewables in strategic expansion

French energy major TotalEnergies has agreed to acquire the European onshore renewable energy business of Shell for an undisclosed sum, as part of a broader effort to strengthen its clean energy portfolio.

The transaction includes around four gigawatts (GW) of electricity generation capacity, primarily from solar and wind assets either in operation or under construction in Italy and the Netherlands. It also covers a pipeline of solar, wind and battery storage projects across Italy, the United Kingdom and Spain.

A source familiar with the deal told Agence France-Presse that the sale is valued at several hundred million euros.

Separately, TotalEnergies said it would divest a 50% stake in a portfolio of renewable assets to KKR, in a transaction that values the portfolio at €1.8 billion ($2.1 billion). The assets, located in Germany, Spain, France and Poland, represent approximately 1.2 GW of electricity generation capacity from wind and solar sources.

“These two transactions enable us to optimise our capital allocation in renewables while continuing to deploy our Integrated Power strategy,” said Stephane Michel, president for gas, renewables and power at TotalEnergies.

The acquisition of Shell’s assets is expected to significantly expand TotalEnergies’ renewable footprint in Europe. The company said it currently has close to 10 GW of renewable generation capacity either installed or under development across the region, with an additional 27 GW in the pipeline.

By Tamilla Hasanova