TotalEnergies to sell 50% of 11 German battery projects to AllianzGI

TotalEnergies has agreed to divest a 50% involvement successful 11 artillery retention projects successful Germany, with a combined capableness ranging from 789MW to 1.63 gigawatt-hours (GWh), to Allianz Global Investors (AllianzGI).

The acquisition is connected behalf of Allianz security companies and the Allianz European Infrastructure Fund II, said AllianzGI.

The transaction is pending customary regulatory approvals and conditions earlier it tin beryllium finalised.

Under the agreement, the partners volition put €500m successful the country’s indispensable vigor infrastructure, with 70% of the backing coming from indebtedness financing.

These projects are expected to beryllium afloat operational by the twelvemonth 2028.

Currently nether operation crossed assorted locations successful Germany, the projects were developed by Kyon Energy, a subsidiary of TotalEnergies.

Saft, different TotalEnergies subsidiary, volition proviso the next-generation batteries for astir of these installations.

TotalEnergies gas, renewables and powerfulness president Stéphane Michel said: “We are delighted to invited Allianz, a first-class spouse successful Germany, arsenic a shareholder successful 11 of our artillery retention projects, representing a full capableness of astir 800MW.

“In enactment with our concern model, this transaction enables america to optimise our superior allocation successful our integrated powerfulness activities and helps amended the sector’s profitability.

“This cognition [will] fortify our improvement momentum successful Germany, Europe’s largest powerfulness market, wherever we are deploying our cleanable steadfast powerfulness strategy, arsenic illustrated by the 200MW PPA [power acquisition agreement] signed with Airbus recently.”

TotalEnergies volition proceed to run the assets pursuing the completion of the sale.

The inaugural aims to bolster the stableness of Germany's powerfulness grid by alleviating congestion and enabling greater flexibility.

In Germany, TotalEnergies is actively progressive successful aggregate facets of the powerfulness sector, including the improvement of renewable vigor projects similar upwind and solar, arsenic good arsenic trading and aggregation processes that guarantee a accordant proviso of low-carbon electricity.

Allianz Global Investors caput of Private Markets Édouard Jozan said: “The displacement to cleaner vigor depends connected beardown infrastructure. This concern marks Allianz’s archetypal nonstop equity committedness to a portfolio of artillery retention projects.

“As a pioneer successful vigor modulation investing for much than 20 years with a portfolio spanning upwind and star farms, greenish hydrogen platforms and an energy interconnector, we are precise delighted to spouse with Total Energies connected this important task successful 1 of our location markets, Germany.