Energy company TotalEnergies announced today the acquisition of renewable energy producer Total Eren, raising its stake to 100% from 30%, in a transaction valuing Total Eren at an Enterprise Value of €3.8 billion (USD$4.2 billion).

Launched in 2012, Total Eren (formerly EREN RE) develops, finances and operates renewable energy power plants, including wind, solar and hydro. The company has 3.5 GW of renewable capacity in operation worldwide, and a project pipeline of over 10 GW in 30 countries. TotalEnergies entered a strategic agreement with the company in 2017, which gave TotalEnergies the right to acquire all of Total Eren after five years.

Total Eren has also recently launched green hydrogen projects in regions including North Africa, Latin America, and Australia. The projects will be pursued through a new partnership 80% owned by TotalEnergies and 20% owned by EREN Group.

Patrick Pouyanné, Chairman & CEO of TotalEnergies, said:

“Our partnership with Total Eren has been very successful, as shown by the size and quality of the renewables portfolio. With the acquisition and integration of Total Eren. We are now opening a new chapter of our development as the expertise of its team and its complementary geographical footprint will strengthen our renewable activities and our ability to build a profitable integrated power player.”

The transaction marks a significant step towards TotalEnergies’ efforts to increase its renewable energy capacity, and follows an announcement yesterday by the company of an agreement to acquire a 50% stake in Rönesans Enerji and develop renewable projects in Turkey. TotalEnergies has set a goal to reach installed renewable power generation capacity of 35GW by 2025, and 100 GW globally by 2030.

Pâris Mouratoglou, Chairman of Total Eren, said:

“With Total Eren, we have successfully created a best-in-class renewable energy player. I want to thank BPI France, Tikehau Capital, NextWorld and Peugeot Invest, for their constant support since 2015. I also want to thank Patrick Pouyanné for his trust and for the spirit of partnership that has led to such achievements with TotalEnergies over the last five years.”