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TotalEnergies Partners with Ronesans for Turkish Renewable Energy Growth
TotalEnergies has successfully completed its planned acquisition of Total Eren, a renewable energy subsidiary, by purchasing all outstanding shares from other shareholders. This acquisition was approved by European Union regulators in April.
The total investment made by TotalEnergies to buy the 70.8% equity it did not already own in Total Eren amounts to approximately €1.5 billion ($1.7 billion). TotalEnergies, a major player in the oil and gas industry, revealed this financial information.
Total Eren, which became part of TotalEnergies in 2017 when the latter initially acquired a stake, has played a significant role in developing renewable energy capacity worldwide. As of now, it has commissioned approximately 3.5GW of renewable energy capacity.
The deal between TotalEnergies and Total Eren was established through a strategic agreement signed in 2017, granting TotalEnergies the right to acquire the remaining shares after a five-year period. The price of the acquisition was determined based on a multiple of Total Eren’s earnings before interest, tax, depreciation, and amortization (Ebitda), valuing the company at around €3.8 billion.
Total Eren currently has an impressive pipeline of renewable energy projects, including solar, wind, hydroelectric, and energy storage, with a total capacity of over 10 GW spread across 30 countries. Of this capacity, 1.2 GW is either under construction or in late-stage development.
With this acquisition, TotalEnergies aims to strengthen its own renewables portfolio. By the end of 2022, the company had a gross renewable power capacity of 17 GW. The acquisition will also enable TotalEnergies to leverage the 2 GW of renewable assets in operation in merchant countries such as Portugal, Greece, Australia, and Brazil, thus enhancing its integrated power strategy.
Furthermore, TotalEnergies plans to take advantage of Total Eren’s expertise and project development capabilities in various other countries, including India, Argentina, Kazakhstan, and Uzbekistan. This move is expected to further enhance TotalEnergies’ position in the renewable energy market.
Following the recent announcement of Total Eren’s acquisition, TotalEnergies made another significant move towards renewable energy endeavors in Turkey. On Monday, the French supermajor revealed a joint venture agreement with Ronesans Group, Turkey’s prominent building contractor, to financially support the latter’s renewable energy projects.
This partnership resulted in the formation of a new entity called Ronesans Enerji, in which TotalEnergies holds a 50% ownership stake. Currently, Ronesans Enerji manages a portfolio of 166 megawatts of hydropower assets and has an impressive pipeline of over 700 megawatts comprising wind, solar photovoltaic, and battery storage projects.
The energy unit of Ronesans Group has set ambitious targets and aims to achieve 2 gigawatts of renewable energy capacity by the year 2028. This venture signifies TotalEnergies’ commitment to expanding its involvement in the renewable energy sector and marks a significant step in Turkey’s renewable energy push.
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