French multinational integrated energy and petroleum company, TotalEnergies and Casa dos Ventos (CDV), a Brazilian developer, have reportedly established a joint venture (JV) to develop, build and operate the latter firm’s 12GW renewables portfolio jointly.
As part of this agreement, TotalEnergies will own a 34% stake in the JV, while CDV will own the remaining 66% interest.
Under the CDV portfolio, 1GW of onshore wind under construction, 1.6GW of solar projects and 2.8GW of onshore wind projects under extremely advanced development, and 700MW of the onshore wind capacity in operation are also included.
Apart from this, the new JV will have a right to take over the new and current projects that are or will be incorporated by CDV as they get through the execution stage.
This will empower the JV to access an additional portfolio of a minimum of 6GW, which CDV plans to expand.
Speaking on the latest move, Patrick Pouyanné, Chief Executive, TotalEnergies, mentioned that after Clearway in the United States and Adani Green in India, the firm is delighted to form this new alliance in Brazil with the most-renowned firm in onshore wind energy, Casa dos Ventos.
According to Patrick, this acquisition empowers TotalEnergies to hold a strong position in the renewable energy market of Brazil, which is one of the leading merchant markets in the world.
Patrick notified that entering this market is a part of the firm’s strategy to take advantage of the growth of the deregulated power markets, crucial to the energy transition.
Patrick said that this transaction is a step further in TotalEnergies' determination to reach 100GW of renewable production by 2030 and transform into a sustainable and profitable multi-energy company, with almost 12GW in operation, construction, and development, both wind and solar.
Credible sources cite that TotalEnergies will be paying a cash consideration of US$550m (€551m) and up to US$30m in earn-out to complete the acquisition.
Additionally, TotalEnergies will have the option to take over an additional 15% equity share in the JV after 5 years.