Total has acquired an indirect 23 % interest in EREN RE in a bid to grow its renewable energy business.
The French oil giant has subscribed to a capital increase in EREN RE, which has developed a diversified portfolio of wind, solar and hydropower projects around the world. It has invested €237.5 million and also has the option of taking over the firm after a period of five years.
EREN RE’s asset base includes around 650 MW of projects in operation or under construction. Its ambition is to reach a global installed capacity of more than 3 GW within five years.
“By partnering with EREN RE, we are leveraging a team that has a proven track record in renewable power production, and we are investing in an additional asset to accelerate our profitable growth in this segment, in line with our ambition to become the responsible energy major,” said Patrick Pouyanné, Chairman and CEO of Total.
EREN RE will be renamed Total Eren, and will enable Total to enter the wind energy market. Development of the company’s solar energy business will be focused on emerging economies, Total said.
“This strategic agreement allows us to join forces with a major energy player, with whom we share a strong desire for development in the renewable energy sector and an ambitious long-term vision,” said Pâris Mouratoglou, Chairman of EREN RE. “Our positioning is global and the Total Group’s strength in international markets represents a tremendous accelerator.”