Global Infrastructure Partners and TotalEnergies announce a strategic partnership in U.S. renewables including their controlling stakes in Clearway Energy Group and SunPower Corporation

Rhea-AI Summary

Global Infrastructure Partners (GIP) and TotalEnergies have announced a strategic partnership aimed at boosting their presence in the U.S. renewable energy sector. TotalEnergies will acquire 50% of GIP's interest in Clearway Energy Group for $1.60 billion in cash along with a stake in the TotalEnergies subsidiary owning 51% of SunPower Corporation (NASDAQ:SPWR). Clearway, which has a 22 GW development pipeline, stands to benefit from TotalEnergies' U.S. power marketing capabilities, enhancing its growth potential. This partnership marks TotalEnergies' largest investment in U.S. renewables.

Positive

• TotalEnergies' acquisition enhances growth prospects for Clearway, facilitating a strong development pipeline of 22 GW.
• GIP's investment in SunPower represents a strategic entry into distributed energy resources, aligning with renewable growth goals.
• The partnership allows TotalEnergies to scale its operations in the dynamic U.S. renewable market, enhancing its portfolio.

Negative

• None.

NEW YORK , May 25, 2022 /PRNewswire/ -- Global Infrastructure Partners (GIP) and TotalEnergies have formed a strategic partnership to advance their commitment to the U.S. renewable energy sector. TotalEnergies will acquire half of GIP's interest in Clearway Energy Group (Clearway), a privately held renewable development company that owns a controlling stake with a 42% economic interest in Clearway Energy, Inc. (NYSE: CWEN. CWEN.A).  In consideration, GIP will receive $1.60 billion in cash, plus an approximately 50% interest in the TotalEnergies subsidiary that holds its 51% ownership in SunPower Corporation (NASDAQ: SPWR), a leader in residential solar in the U.S. (with the final amounts subject to purchase price adjustments).

Clearway owns the fifth largest operating portfolio of non-regulated renewable assets in the U.S. (5.7 GW) and a 22 GW development pipeline and will represent TotalEnergies' largest investment in U.S. renewables to date. Since early 2021, TotalEnergies has secured a development pipeline of 8 GW onshore renewables and 4 GW offshore wind in the U.S.  TotalEnergies will enhance Clearway's growth prospects by providing (i) a right of first offer on its U.S. onshore renewable assets to CWEN, and (ii) access to TotalEnergies' U.S. power marketing capabilities and corporate relationships to optimize and enhance the commercial value of Clearway's development and operating projects. 

SunPower is the second largest residential solar company in the U.S., providing customers with fully integrated solar, storage, home energy and financing solutions. GIP and TotalEnergies are well-positioned to support SunPower management's growth strategy. SunPower represents the first investment in distributed energy resources for GIP's leading renewables platform, which includes ownership interests in 18 GW of operating and construction assets and over 120 GW of development pipeline via 9 existing portfolio companies.

"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.

"I am 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, a 22 GW high quality portfolio, with a wide geographic coverage with a presence in 34 states. This major transaction demonstrates the speed and magnitude of our transformation into a multi-energy company and the strength of our commitment to the United States. It fits perfectly with our strategy to make solar and wind energy 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.

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

About Global Infrastructure Partners
GIP is a leading independent infrastructure fund manager that makes equity and debt investments in infrastructure assets and businesses. GIP targets investments in the energy, transport, digital infrastructure, and water/waste sectors in both OECD and select emerging market countries. GIP's global renewables portfolio includes solar, wind, hydro, and battery storage assets representing 18 GW of operating and construction capacity, royalty interests in over 21 GW of operating renewable projects, and over 120 GW of assets in development. Headquartered in New York, GIP operates out of 10 offices: New York, London, Stamford (Connecticut), Sydney, Melbourne, Brisbane, Mumbai, Delhi, Singapore and Hong Kong. GIP manages c. US $81 billion for its investors. GIP's portfolio companies have combined annual revenues of c. US $61 billion and employ c. 99,000 people. For more information, visit www.global-infra.com.

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.

Twitter: @TotalEnergies              
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Twitter: @TotalEnergiesPR

TotalEnergies Contacts

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

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.

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SOURCE Global Infrastructure Partners

FAQ

What is the partnership between Global Infrastructure Partners and TotalEnergies?

Global Infrastructure Partners and TotalEnergies have formed a strategic partnership to strengthen their commitment to the U.S. renewable energy sector, with TotalEnergies acquiring half of GIP's interest in Clearway Energy Group.

How much is TotalEnergies paying for its stake in Clearway Energy Group?

TotalEnergies will pay $1.60 billion in cash to acquire 50% of GIP's interest in Clearway Energy Group.

What is Clearway Energy Group's development pipeline size?

Clearway Energy Group has a development pipeline of 22 GW.

What does this partnership mean for SunPower Corporation?

The partnership includes a stake in TotalEnergies' subsidiary that owns 51% of SunPower Corporation, enhancing GIP's involvement in distributed energy resources.

What stock symbols are associated with this partnership?

The stock symbols associated with this partnership include CWEN and CWEN.A for Clearway Energy, and SPWR for SunPower Corporation.