TotalEnergies announced the acquisition of all remaining shares of Total Eren, increasing its ownership from nearly 30% to a complete 100% stake. The integration of Total Eren teams within TotalEnergies’ Renewables business unit strengthens their position in the market. This move follows a strategic agreement executed in 2017 that granted TotalEnergies the option to purchase 100 percent of Total Eren (previously EREN RE) after a five-year period.
Total Eren has been appraised with an Enterprise Value of €3.8 billion, reflecting an attractive EBITDA multiple. As part of this transaction, TotalEnergies acquired 70.8% ownership, amounting to a net investment of approximately €1.5 billion. The integration of Total Eren is expected to drive a substantial increase in TotalEnergies’ Integrated Power Net Operating Income, estimated to be around €160 million, and Cash Flow From Operations of about €400 million in the year 2024.
With an existing operational renewable capacity of 3.5 GW worldwide and an extensive pipeline of solar, wind, hydroelectric, and storage projects totaling over 10 GW across 30 countries, Total Eren is a significant player in the renewable energy market. Notably, 1.2 GW of these projects are currently in construction or late-stage development.
TotalEnergies will capitalize on Total Eren’s strength, leveraging its 2 GW assets in countries like Portugal, Greece, Australia, and Brazil, to strengthen its integrated power strategy. Moreover, Total Eren’s well-established presence and expertise in project development extend to promising markets such as India, Argentina, Kazakhstan, and Uzbekistan.
Apart from providing valuable high-quality operated assets, Total Eren brings with it the knowledge and capabilities of nearly 500 professionals located in more than 20 countries. The impressive organic growth achieved by Total Eren stands as a testament to the expertise its teams have built since its establishment in 2012. By integrating these skilled teams, TotalEnergies gains a competitive edge in delivering production growth while optimizing operational costs and capital expenditures.
Total Eren has also embarked on groundbreaking green hydrogen initiatives, spanning diverse regions such as North Africa, Latin America, and Australia. These green hydrogen projects will now be propelled forward through a fresh collaboration known as “TEH2,” with ownership shared between TotalEnergies (80%) and the EREN Group (20%).
“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,” said Patrick Pouyanné, Chairman & CEO of TotalEnergies. “I want to thank Total Eren’s founders, Pâris Mouratoglou and David Corchia, as well as their teams, for their incredible development work, which led to this successful achievement. Today, we are welcoming Total Eren’s experienced teams, who will continue their remarkable work with the added resources of a bigger company.”
Pâris Mouratoglou, Chairman of Total Eren, added, “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.”
David Corchia, CEO of Total Eren, noted, “This success belongs first to Total Eren’s teams around the globe. They will undoubtedly make a huge contribution to TotalEnergies’ highly ambitious plan in the renewable sector. Together with Pâris Mouratoglou, we will continue creating and developing new companies for the energy transition and the planet’s decarbonization, as well as, within our new promising partnership with TotalEnergies, the development of giant green hydrogen production projects worldwide.”