TotalEnergies to buy Shell’s wind, solar business in Europe

French energy giant TotalEnergies said Monday that it had signed a deal with Shell to buy Shell’s European onshore renewable energy businesses for an undisclosed amount.

The deal represents around four gigawatts of electricity production, mainly solar and wind power in operation or being built in Italy and the Netherlands, as well as solar, wind and battery storage projects in Italy, Britain and Spain.

At the same time, TotalEnergies said it would sell a 50 per cent stake in a portfolio of wind and solar assets in Germany, Spain, France and Poland to the US investment firm KKR, in a deal that values the portfolio at 1.8 billion euros ($2.1 billion).

The portfolio represents around 1.2 gigawatts of electricity production.

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

The acquisition of Shell’s operations will boost Total’s renewable energy operations in Europe, where it said it has nearly 10 GW of production capacity already built or under construction, with a further 27 GW under development.