Global energy company Total has, through its French subsidiary Total Quadran, sold a 50% stake in two renewable energy projects.
Total Quadran has sold a 50% stake in a portfolio consisting of 9 wind farms (103MW) and 44 solar power plants (182MW) for a total capacity of 285MW to insurance company Crédit Agricole Assurances.
A 50% stake in a portfolio consisting of 8 solar farms located in New Caledonia with a total capacity of 53MW has also been sold to bank Banque des Territoires.
These farm-down transactions value these portfolios (close to cumulative 340MW) at an enterprise value of around $600 million. They derisk the Group portfolio, accelerate cash flow recognition and increase the return on equity.
Julien Pouget, senior vice president Renewables of Total, said: “These farm downs are the implementation of the business model we have defined for the development of renewable energies aiming to achieve over 10% return on equity. We are delighted to deepen our partnerships with both Banque des Territoires and Crédit Agricole Assurances.”
Jean-Jacques Duchamp, deputy CEO of Crédit Agricole Assurances, adds: “This transaction is in line with our strategy of being a long-term institutional investor and diversifying on behalf of our clients. It is a fully integrated strategy, in line with the Crédit Agricole Group’s climate commitments, in favor of energy transition and a low-carbon economy. We are proud of this partnership with Total, which enables us to consolidate our contribution to the energy transition in France.”
Emmanuel Legrand, head of the Banque des Territoires’ Energy and Environmental Transition Department, reiterates: “This acquisition illustrates the Banque des Territoires’ determination to provide long-term support to players in the energy transition in the deployment of new renewable energy projects in mainland France and the French overseas territories,”