TotalEnergies SE TTE disclosed the acquisition of Kyon Energy, a German battery storage developer, for an upfront payment of €90 million, plus some earn-out payments related to the achievement of development targets.
Kyon Energy has 770 MW of projects, of which 120 MW are in operation, 350 MW are under construction, and 300 MW are ready to build.
With the buyout of Kyon, Total Energies will attain these projects, which are mainly based in North Germany.
The acquisition is a part of TotalEnergies’ integrated power strategy and follows 2023’s expansion successes in the country, including a maritime concession award to develop a 3 GW offshore wind farm and the acquisition of the renewable energy aggregator Quadra Energy.
Stéphane Michel, President Gas, Renewables & Power said, “The acquisition of this company, one of the leaders in its market, is a key element in our presence in the German electricity market, which is the largest in Europe.”
“This acquisition will enable us to accelerate the development of our Integrated Power activities in Germany, both in production, trading, aggregation and marketing of low-carbon electricity available 24 hours a day. It also contributes to our profitability target for this business segment of 12% ROACE by 2028.”
Apart from this, TotalEnergies penned a new deal with European Energy for offshore wind projects in Denmark, Finland, and Sweden.
The deal, which is a part of its integrated development in electricity, entails 405 MW of offshore wind power under development in Denmark and joint development for large scale offshore wind projects in Sweden, Finland, and Denmark.
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The agreement follows a previous contract between TotalEnergies and European Energy in September 2023 to jointly create and operate onshore renewable projects in several geographies.
“These new offshore wind projects in Denmark are aligned with our strategy of developing renewable projects in merchant countries at competitive cost. This partnership will allow TotalEnergies to take advantage of European Energy’s longstanding presence in northern Europe to expand its business there,” said Vincent Stoquart, Senior Vice President, Renewables.
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Price Action: TTE shares are down 0.40% at $63.01 premarket on the last check Tuesday.
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