TotalEnergies Buys 50% of EPH Flex-Gen Fleet in €5.1B Power Push

TotalEnergies (TTE) has agreed to get 50% of Energetický a pr?myslový holding’s (EPH) flexible procreation platform—spanning gas-fired plants, biomass units, and batteries—in a €5.1 cardinal all-stock transaction that deepens the French major’s integration of gas, LNG, and powerfulness crossed Europe.

The deal, valuing the portfolio astatine €10.6 cardinal (7.6x expected 2026 EBITDA), volition make a 50/50 associated task betwixt TotalEnergies and EPH, placing much than 14 GW of flex-gen assets nether shared concern management. TotalEnergies volition contented 95.4 cardinal caller shares to EPH, making the Czech radical 1 of its largest shareholders with astir 4.1% of its capital.

The acquisition gives TotalEnergies contiguous standard successful Europe’s astir profitable powerfulness markets with 14 GW of operating and under-construction flexible procreation capableness and 5 GW of improvement projects—positioning the institution to present “clean steadfast power” arsenic information halfway energy request accelerates.

The determination marks the astir important milestone yet successful TotalEnergies’ propulsion to physique an integrated powerfulness concern spanning renewables, state supply, vigor storage, and flexible generation. The institution already holds a starring LNG import presumption successful Europe, and combining that with dispatchable gas-fired capableness strengthens its quality to seizure margins on the gas-to-power chain—particularly betwixt the U.S. and European markets.

The acquired assets, located successful Italy, the UK and Ireland, the Netherlands, and France, adhd an estimated 15 TWh of nett yearly powerfulness accumulation (rising to 20 TWh by 2030), enabling TotalEnergies to monetize astir 2 cardinal tonnes per twelvemonth of LNG done powerfulness generation. The portfolio besides benefits from secured capableness revenues, which relationship for astir 40% of gross borderline and assistance buffer volatility successful wholesale powerfulness markets.

Here is simply a breakdown of the assets:

• Italy (7.5 GW): Includes 2 next-generation CCGTs nether construction, immoderate of Europe’s astir businesslike units.

• UK & Ireland (7.1 GW): Mix of operating state and biomass plants positive batteries nether construction.

• Netherlands (3.6 GW): Gas plants strategically located to service the German market, with artillery projects successful progress.

• France (1.1 GW): Mainly artillery development.

The JV volition besides service arsenic the preferred conveyance for aboriginal flexible-generation investments successful these markets.

The transaction is instantly accretive to TotalEnergies’ escaped currency travel per share. The institution expects astir $750 cardinal successful further yearly disposable currency travel implicit the adjacent 5 years—well supra the incremental dividend load from issuing caller shares.