TotalEnergies SE TTE announced that it has signed an agreement with EIG, an institutional investor in the global energy sector, to acquire all of the shares in West Burton Energy. The transaction, which has an enterprise value of £450 million ($576 million), is subject to regulatory approval.
The agreement would enable TotalEnergies to better support its 300,000 gas and electricity customers in the UK by providing increasingly accessible, affordable and sustainable energy. It is also expected to strengthen TTE’s trading position in the country’s electricity and gas markets. The company will supply the plant by leveraging its position in natural gas production in the country, where it has a 30% share of the projects.
Details of the deal
West Burton Energy owns and operates the West Burton B gas-fired power station in Nottinghamshire, England. It comprises three combined cycle gas turbines (CCGTs) with a total capacity of 1.3 gigawatts (GW). In 2013, the most advanced power plant in the UK was commissioned and in 2018, a 49 megawatt (MW) battery storage system was added.
With this acquisition, TotalEnergies is expected to add a flexible asset that will reduce intermittency and provide a steady supply of electricity to its customers.
TotalEnergies anticipates a need for 700 MW of gas-based power generation capacity, given the size of the company’s renewable portfolio in the country, which currently stands at 1.1 GW of gross installed capacity and 4.5 GW under development. As a result, the company plans to divest 50% of the acquired assets.
TTE’s focus on renewables
In an effort to achieve net-zero emissions by 2050, the company is developing a world-class, cost-competitive portfolio that combines flexible assets such as CCGT and storage with renewables such as solar, onshore and offshore wind. The idea is to deliver clean, reliable electricity to its customers.
