The French firm has identified Germany as a priority growth market for its integrated power business. — Reuters
PARIS: French oil major TotalEnergies has agreed to buy German renewable developer VSB Group for US$1.65bil from Swiss asset manager Partners Group, it has said, as it expands in a priority market.
The French firm has identified Germany as a priority growth market for its integrated power business, and said the acquisition would also deepen its expertise in building onshore wind.
While most oil and gas companies roll back green targets, Total has bucked the trend, steadily expanding renewables in locations where it can sell the power directly to consumers and profit off electricity trading during volatile price swings.
RBC analyst Biraj Borkhataria said Germany ticks the boxes for Total.
“It has an offshore wind position there, there’s a large industrial consumer base, and it’s where you’re likely to see structurally higher power prices and structurally more volatility because the Germans are removing baseload power and adding intermittency,” he said. Germany is home to significant battery storage and energy management assets owned by Total. — Reuters
