Total farms down 2 portfolios of renewable assets in France to Banque des Territoires and Crédit Agricole Assurances

February 23, 2021

In line with its business model for the development of its renewables business, Total, through Total Quadran – its 100% renewable electricity production subsidiary in France, farms down respectively to Banque des Territoires and Crédit Agricole Assurances half of its equity in two portfolios of renewable projects.

Crédit Agricole Assurances acquires a 50% stake in a portfolio consisting of 9 wind farms (103 MW) and 44 solar power plants (182 MW) for a total capacity of 285 MW (100%).
Banque des Territoires takes a 50% stake in a portfolio consisting of 8 solar farms located in New Caledonia with a total capacity of 53 MW (100%).

These farm-down transactions value these portfolios (close to cumulative 340 MW) at an enterprise value of around $600 million for 100%. They derisk the Group portfolio, accelerate cash flow recognition and increase the return on equity.

“These farm downs are the implementation of the business model we have defined for the development of renewable energies aiming to achieve over 10% return on equity. We are delighted to deepen our partnerships with both Banque des Territoires and Crédit Agricole Assurances” said Julien Pouget, Senior Vice President Renewables of Total.

“This transaction is in line with our strategy of being a long-term institutional investor and diversifying on behalf of our clients. It is a fully integrated strategy, in line with the Crédit Agricole Group’s climate commitments, in favor of energy transition and a low-carbon economy. We are proud of this partnership with Total, which enables us to consolidate our contribution to the energy transition in France,” says Jean-Jacques Duchamp, Deputy Chief Executive Officer of Crédit Agricole Assurances.

“This acquisition illustrates the Banque des Territoires’ determination to provide long-term support to players in the energy transition in the deployment of new renewable energy projects in mainland France and the French overseas territories,” says Emmanuel Legrand, head of the Banque des Territoires’ Energy and Environmental Transition Department.

Total, renewables and electricity

As part of its ambition to get to net zero by 2050, Total is building a portfolio of activities in renewables and electricity that could account for up to 40% of its sales by 2050. At the end of 2020, Total’s gross power generation capacity worldwide was around 12 GW, including 7 GW of renewable energy. With the objective of reaching 35 GW of production capacity from renewable sources by 2025, Total will continue to expand its business to become one of the world leaders in renewable energies.