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(Sharecast News) - TotalEnergies said on Monday that it has agreed the acquisition of Shell's European onshore renewables portfolio for an undisclosed sum, and the sale of some onshore renewable assets to KKR.
The portfolio being bought from Shell includes 500 MW of solar and wind assets in operation or under construction, mainly in Italy and the Netherlands, and a 3.5 GW pipeline of solar, wind and battery storage projects in Italy, the UK and Spain.
Machteld de Haan, President, Downstream, Renewables and Energy Solutions at Shell, said: "This agreement reflects Shell's continued focus on actively managing and high-grading its power portfolio in line with the strategy set out at Capital Markets Day 2025.
"We are recycling capital and prioritising areas where we have differentiated capabilities and can create the most value over time, including through asset-backed power trading and customer-focused energy solutions."
The transaction is expected to complete by the end of this year.
The French energy company also announced the sale to investment firm KKR of a 50% stake in an already largely developed 1.2 GW renewables asset. The portfolio, which is valued at 1.8bn, includes assets in Germany, Spain, France and Poland. The electricity produced by these assets is already sold to third parties or will be marketed by TotalEnergies.
TotalEnergies will retain a 50% stake in the assets and continue to operate them after completion of the deal, which is expected this year.
Stphane Michel, President, Gas, Renewables & Power at TotalEnergies, said: "In line with our strategy, these two transactions enable us to optimise our capital allocation in renewables while continuing to deploy our Integrated Power strategy.
"The acquisition of Shell's onshore renewables assets in Europe strengthens our power generation positions in selected key deregulated markets across Europe and supports the implementation of our integrated strategy across the electricity value chain, complementing the flexible generation capacity of the gas-fired power plants of TTEP, our joint venture with EPH, particularly in Italy, the Netherlands and the United Kingdom.
"In addition, with this agreement with KKR, we demonstrate once again our ability to implement our business model in renewables in order for Integrated Power to reach a ROACE of 12% by 2030."