TotalEnergies Acquires VSB Group for €1.57 Billion

By America Hernandez

PARIS (Reuters) – French oil major TotalEnergies (EPA:TTEF) has agreed to buy German renewable developer VSB Group for €1.57 billion ($1.65 billion) from Swiss asset manager Partners Group, as it expands in a priority market.

The French firm identified Germany as a key growth area for its integrated power business, stating that the acquisition would enhance its expertise in building onshore wind.

While most oil and gas companies are retracting green targets, TotalEnergies continues to expand its renewables sector in locations where it can sell power directly to consumers and profit from electricity trading amid volatile price fluctuations.

RBC analyst Biraj Borkhataria notes that Germany is strategically appealing for Total. “They have an offshore wind position there, there's a large industrial consumer base, and it's likely to see structurally higher power prices and more volatility due to Germany’s transition away from baseload power,” he said.

Germany, Europe’s largest economy and leading manufacturer, is also home to substantial battery storage and energy management assets owned by Total through subsidiaries Saft, Kyon Energy, and Quadra Energy.

VSB has an 18 GW project pipeline, including wind, solar, and battery storage technologies primarily in Germany, Poland, and France, with 0.475 GW of renewable capacity either operational or under construction.

Reuters first reported that Partners Group was considering selling VSB earlier this year.

TotalEnergies currently boasts 24 GW of gross installed renewable capacity, with targets to add 11 GW by next year and reach 100 GW by 2030.

Additionally, TotalEnergies announced an agreement with funds managed by Apollo to sell 50% of a portfolio comprising 2 GW of solar and battery energy storage systems (BESS) projects located in Texas, generating $800 million in cash.

($1 = 0.9537 euros)