On Wednesday, Global Infrastructure Partners (GIP), the global independent infrastructure investor with $81 billion in managed client assets, announced that it has formed a strategic partnership with TotalEnergies focused on the U.S. renewable energy sector.
Under terms of the partnership TotalEnergies will acquire half of GIP’s interest in Clearway Energy Group, a privately held renewable development company that owns a controlling stake with a 42 percent economic interest in listed energy provider Clearway Energy, Inc. In return, GIP will receive $1.60 billion in cash, plus an approximately 50 percent interest in the TotalEnergies subsidiary that holds its 51 percent ownership in publicly traded SunPower Corporation, a leader in U.S. residential solar (per GIP, final amounts will be subject to purchase price adjustments).
Clearway owns the fifth largest operating portfolio of non-regulated renewable assets in the U.S. (5.7 GW) and a 22 GW development pipeline and will represent TotalEnergies’ largest investment in U.S. renewables to date. Since early 2021, TotalEnergies has secured a development pipeline of 8 GW onshore renewables and 4 GW offshore wind in the U.S. TotalEnergies will enhance Clearway’s growth prospects by providing (i) a right of first offer on its U.S. onshore renewable assets to CWEN, and (ii) access to TotalEnergies’ U.S. power marketing capabilities and corporate relationships to optimize and enhance the commercial value of Clearway’s development and operating projects.
SunPower is the second largest residential solar company in the U.S., providing customers with fully integrated solar, storage, home energy and financing solutions. GIP and TotalEnergies are well-positioned to support SunPower management’s growth strategy SunPower represents the first investment in distributed energy resources for GIP’s leading renewables platform, which includes ownership interests in 18 GW of operating and construction assets and over 120 GW of development pipeline via 9 existing portfolio companies.
“We are extremely pleased to partner with TotalEnergies to continue leading the energy transition in the U.S. We are proud of the growth and accomplishments of the Clearway team since our initial investment in 2018, and we are confident that with TotalEnergies as a partner, Clearway will be able to accelerate the deployment of cost competitive renewable power in the U.S. At the same time, GIP’s investment in SunPower is our initial commitment in the distributed generation space, which we believe will provide critical solutions to facilitate the nation’s clean energy future. The scale, capabilities and ambition that both GIP and TotalEnergies bring to this partnership will support our shared vision to build industry-leading utility scale and distributed renewables platforms in the U.S.,” GIP Chairman and CEO Adebayo Ogunlesi said in an official statement.
“I am delighted with this partnership with Global Infrastructure Partners, which is a major player in renewables, particularly in the United States. It allows TotalEnergies to scale up in the U.S. market, one of the most dynamic in the world, benefiting from operating assets, a 22 GW high quality portfolio, with a wide geographic coverage with a presence in 34 states. This major transaction demonstrates the speed and magnitude of our transformation into a multi-energy company and the strength of our commitment to the United States. It fits perfectly with our strategy to make solar and wind energy one of our main growth drivers along with liquefied natural gas that we have recently reinforced with the launch of Cameron extension. It illustrates our priority to accelerate the transformation of the company to become a sustainable and profitable multi-energy company”, said Patrick Pouyanné, Chairman and CEO of TotalEnergies.
Both transactions are subject to customary conditions, including requisite regulatory approvals.
