REG-TotalEnergies SE United States: TotalEnergies Acquires 50% of Clearway, the 5th Largest U.S. Renewable Energy Player

TotalEnergies SEAnnouncement

25/05/2022 07:00

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United States: TotalEnergies Acquires 50% of Clearway, the 5th Largest U.S.
Renewable Energy Player

 

TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE) announces the signature of
agreements with Global Infrastructure Partners (GIP) to acquire 50% of
Clearway Energy Group (CEG), the 5(th) US renewable energy player. This
constitutes its largest acquisition in the renewable energy in the United
States, one of the top 3 renewable markets in the world. With such
transaction, TotalEnergies is further accelerating its growth in the renewable
energy sector by partnering with GIP, a leading global infrastructure fund.

CEG is a developer of renewables projects and controls and owns 42 % of
economic interest of its listed subsidiary, Clearway Energy Inc. (CWEN), into
which projects are dropped when they reach commercial operation.

With this acquisition, TotalEnergies is establishing a major position in the
U.S. renewable energy and storage market. Clearway has 7.7 GW(1) of wind and
solar assets in operation through its listed subsidiary CWEN and has a 25 GW
pipeline of renewable and storage projects, of which 15 GW are in an advanced
stage of development. Headquartered in San Francisco, Clearway has
approximately 760 employees.

In the frame of this transaction, GIP will receive $1.6 billion in cash and an
interest of 50% minus one share in the TotalEnergies subsidiary that holds its
50.6% ownership in SunPower Corporation (NASDAQ: SPWR), leader in residential
solar in the U.S. The transaction takes into account valuations of $35.1 per
share for CWEN and $18 per share for SunPower.

As part of this partnership, TotalEnergies will contribute to enhance
Clearway’s growth prospects by providing CWEN in the U.S. with access to its
power trading capabilities and will give it priority on the farm down of its
own developed projects.

The acquisition brings TotalEnergies' renewable portfolio in the U.S. to more
than 25 GW and contributes to the objective that the United States account for
at least 25% of the Company's global target of 100 GW by that time.

This transaction complements the portfolio that TotalEnergies has built up in
the U.S. since the beginning of 2021:


 * In large-scale solar, TotalEnergies is already developing 8 GW of projects
following the acquisition of a projects portfolio from SunChase, its
partnership with Hanwha Energy and the recent acquisition of Core Solar.

 * In offshore wind, TotalEnergies will develop 4 GW of projects off the coast of
New York and North Carolina, after having been successful in tenders.

Finally, TotalEnergies welcomes GIP as an equity partner in SunPower. SunPower
is the second largest residential solar company in the U.S., providing
customers with fully integrated solar, storage, home energy and financing
solutions. TotalEnergies and GIP are well-positioned to support together
SunPower management’s growth strategy.

“We are delighted with this partnership with Global Infrastructure Partners,
which is a major player in renewables, particularly in the United States. It
allows TotalEnergies to scale up in the U.S. market, one of the most dynamic
in the world, benefiting from operating assets and a 25 GW high quality
pipeline, in wind, solar and storage, with a wide geographic coverage with a
presence in 34 states. This transaction perfectly fits with our strategy to
make renewable electricity one of our main growth drivers along with liquefied
natural gas that we have recently reinforced with the launch of Cameron
extension. It illustrates our priority to accelerate the transformation of the
company to become a sustainable and profitable multi-energy company,” said
Patrick Pouyanné, Chairman and CEO of TotalEnergies.

“We are extremely pleased to partner with TotalEnergies to continue leading
the energy transition in the U.S. We are proud of the growth and
accomplishments of the Clearway team since our initial investment in 2018, and
we are confident that with TotalEnergies as a partner, Clearway will be able
to accelerate the deployment of cost competitive renewable power in the U.S.
At the same time, GIP’s investment in SunPower is our initial commitment in
the distributed generation space, which we believe will provide critical
solutions to facilitate the nation’s clean energy future. The scale,
capabilities and ambition that both GIP and TotalEnergies bring to this
partnership will support our shared vision to build industry-leading utility
scale and distributed renewables platforms in the U.S.,” said Adebayo
Ogunlesi, Chairman and CEO of Global Infrastructure Partners.

Both transactions are subject to customary conditions, including receipt of
requisite regulatory approvals.

TotalEnergies and renewable electricity

As part of its ambition to get to net zero by 2050, TotalEnergies is building
a portfolio of activities in renewables and electricity. At the end of 2021,
TotalEnergies' gross renewable electricity generation capacity is more than 10
GW. TotalEnergies will continue to expand this business to reach 35 GW of
gross production capacity from renewable sources and storage by 2025, and then
100 GW 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 on a global scale: oil and biofuels, natural gas and green gases,
renewables and electricity. Our 105,000 employees are committed to energy that
is ever more affordable, clean, reliable and accessible to as many people as
possible. Active in more than 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

This press release, from which no legal consequences may be drawn, is for
information purposes only. The entities in which TotalEnergies SE directly or
indirectly owns investments are separate legal entities. TotalEnergies SE has
no liability for their acts or omissions. The terms “Company” or
“TotalEnergies company” refer collectively to the company TotalEnergies SE
and the companies it controls directly or indirectly. Such terms are used
solely for the sake of convenience for purposes of the present communication.
Likewise, the words “we”, “us” and “our” may also be used to refer
to subsidiaries in general or to those who work for them. 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.

(1) Powers are expressed in dc and correspond respectively in ac to 7 GWac in
operation and 22,3 GWac in development

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Investor Relations: +33 (0)1 47 44 46 46 l ir@totalenergies.com
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