TotalEnergies, Casa dos Ventos set up 12-GW renewables JV in Brazil

French multi-energy group TotalEnergies SE (EPA:TTE) said today it has established a joint venture with Brazilian renewable energy developer Casa dos Ventos to develop, build and operate 12 GW of wind and solar parks in Brazil.

The deal concerns the renewable energy portfolio of Casa Dos Ventos, which includes 700 MW of operational wind parks, 1 GW of wind farms under construction, plus some 2.8 GW of onshore wind and 1.6 GW of solar projects in advanced development. These schemes are planned to be commissioned within five years.

TotalEnergies, which already has 12 GW of gross installed renewable assets globally, will hold 34% of the new entity, while Casa dos Ventos will own the controlling 66% share. The French energy major said it would pay USD 550 million (EUR 548m) in cash and an extra USD 30 million in earn-out to complete the acquisition. As part of the deal, it will also have the right to buy an additional 15% stake in the Brazilian venture after five years.

The joint business will have the option to acquire the current and new projects to be developed by Casa dos Ventos when they reach the execution phase. This right, if exercised, will give it access to additional projects with a potential capacity of at least 6 GW.

"This market fits our strategy of taking advantage of the growth of the deregulated power markets, which is crucial to the energy transition," said Patrick Pouyanne, Chairman and CEO of TotalEnergies.

(USD 1.0 = EUR 0.996)

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