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Total to acquire 23% stake in EREN Renewable Energy

CTBR Staff Writer Published 20 September 2017

French oil and gas company Total has agreed to acquire a stake of 23% in EREN Renewable Energy (EREN RE) for an amount of €237.5m.

As per the agreement, Total can take over EREN RE after a period of 5 years.

EREN RE is a subsidiary of EREN Groupe which was established in 2012 and is considered to have a developed a diversified asset base including wind, solar and hydro.

It owns an installed capacity of 650MW globally and is planning to grow it capacity to 3GW in the coming 5 years.

Total’s subscription of EREN RE’s capital is expected to contribute significantly in reaching its planned capacity of 3GW in the coming years.

Total chairman and CEO Patrick Pouyanné said: “Total integrates climate challenge into its strategy and is pursuing steady growth in low-carbon businesses, in particular in renewable energy.

“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.”

The transaction still has to receive the regulatory authority approval and upon completion, Total plans to rename EREN RE as Total EREN. With EREN, Total expects to enter the wind power generation segment.

On the other hand, Total has been active in solar energy generation since 2011 and it is a major shareholder in SunPower. Total’s experience in solar energy can be leveraged by EREN RE, as its solar energy business is mainly focused on emerging countries where there is a increasing demand for electricity.

EREN RE CEO David Corchia said: "We would like to thank Bpifrance, Next World, Tikehau and FFP who have accompanied us since 2015 and will continue to follow us alongside a global energy major. As part of this agreement, EREN RE will retain its managerial autonomy that has made its success since the foundation, in particular its agility, flexibility and speed of strategic decisions and their implementation."

Image: Total to acquire 23% stake in EREN Renewable Energy. Photo: Courtesy of EREN.