REG-TotalEnergies SE United States: TotalEnergies Acquires 1.5 GW Flexible Power Generation Capacity in Texas

TotalEnergies SEAnnouncement

13/11/2023 07:30

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United States: TotalEnergies Acquires 1.5 GW Flexible Power Generation
Capacity in Texas

 

As part of its development as an integrated power player, TotalEnergies
(Paris:TTE) (LSE:TTE) (NYSE:TTE) has signed an agreement with TexGen, a
U.S.-based company to acquire for $635 million three gas-fired power plants
with a total capacity of 1.5 GW in Texas.

The three plants, which are connected to ERCOT (Electric Reliability Council
of Texas), the second largest power market in the United States, consist of
the following:


 * The Wolf Hollow I plant with a 745 MW combined-cycle gas turbine (CCGT) plant
on the outskirts of Dallas.


 * The Colorado Bend I plant with a 530 MW CCGT and a 74 MW open-cycle gas
turbine (OCGT), south of Houston, provides additional flexibility to meet
exceptionally high demand, especially in the summer.


 * The La Porte site with a 150 MW OCGT, southeast of Houston.

These flexible assets, located close to Dallas and Houston, will serve the
fast-growing energy demand of these cities and will allow to offset the
intermittency of renewable power production. Their importance was recently
highlighted during weather events that impacted power generation from
renewable assets in Texas or led to high seasonal peak demand.

The 1.5 GW additional flexible production capacity acquired by TotalEnergies
will complement its renewable capacity in Texas – currently 2 GW gross
installed, 2 GW under construction and more than 3 GW under development –
and will strengthen its trading capabilities in the gas and power markets.

This latest acquisition reinforces TotalEnergies’ commitment to delivering
energy that is more available, affordable, and sustainable for the 26 million
ERCOT customers across Texas.

"We are delighted with the agreement signed with TexGen to acquire 1.5 GW of
CCGT in ERCOT. After the signing of several corporate PPA over the last couple
of years and the recent start-up of the utility-scale Myrtle solar plant, this
deal is a major milestone for our Integrated Power strategy in the ERCOT
market. These plants will enable us to complement our renewable assets,
intermittent by nature, provide our customers with firm power, and take
advantage of the volatility of electricity prices”, said Stephane Michel,
President Gas Renewables & Power at TotalEnergies. “This acquisition
will contribute positively to our profitability target of 12% ROACE by 2028
for our Integrated Power business segment.”

This transaction remains subject to approval by the relevant authorities.

***

TotalEnergies in the U.S

Operating in the United States since 1957, TotalEnergies is focused on
identifying opportunities to meet growing energy needs while reducing carbon
emissions. With a presence in more than 30 U.S. states, the Company is
developing an integrated portfolio combining 25 GW of operated and
non-operated solar and wind projects, storage, and trading. It is also the
number one U.S. exporter of LNG, a critical partner for intermittent renewable
energies.

TotalEnergies and electricity

As part of its ambition to get to net zero by 2050, TotalEnergies is building
a world class cost-competitive portfolio combining renewables (solar, onshore
and offshore wind) and flexible assets (CCGT, storage) to deliver clean firm
power to its customers. In 2022, TotalEnergies generated more than 33 TWh of
electricity, and had a gross renewable electricity generation installed
capacity of 17 GW. TotalEnergies will continue to expand this business to grow
its power generation to more than 100 TWh by 2030, with the objective of being
among the world's top 5 producers of electricity from wind and solar energy.

About TotalEnergies

TotalEnergies is a global multi-energy company that produces and markets
energies: oil and biofuels, natural gas and green gases, renewables and
electricity. Our more than 100,000 employees are committed to energy that is
ever more affordable, more sustainable, more reliable and accessible to as
many people as possible. Active in nearly 130 countries, TotalEnergies puts
sustainable development in all its dimensions at the heart of its projects and
operations to contribute to the well-being of people.

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Cautionary Note

The terms “TotalEnergies”, “TotalEnergies company” or “Company” in
this document are used to designate TotalEnergies SE and the consolidated
entities that are directly or indirectly controlled by TotalEnergies SE.
Likewise, the words “we”, “us” and “our” may also be used to refer
to these entities or to their employees. The entities in which TotalEnergies
SE directly or indirectly owns a shareholding are separate legal entities.
This document may contain forward-looking information and statements that are
based on a number of economic data and assumptions made in a given economic,
competitive and regulatory environment. They may prove to be inaccurate in the
future and are subject to a number of risk factors. Neither TotalEnergies SE
nor any of its subsidiaries assumes any obligation to update publicly any
forward-looking information or statement, objectives or trends contained in
this document whether as a result of new information, future events or
otherwise. Information concerning risk factors, that may affect
TotalEnergies’ financial results or activities is provided in the most
recent Registration Document, the French-language version of which is filed by
TotalEnergies SE with the French securities regulator Autorité des Marchés
Financiers (AMF), and in the Form 20-F filed with the United States Securities
and Exchange Commission (SEC).

TotalEnergies 

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