London, UK – TotalEnergies SE, a French multinational energy company, has announced the acquisition of a gas-fired power plant in the UK from EIG Global Energy Partners for an enterprise value of £450 million ($575 million). The purchase of West Burton B power station, located in Nottinghamshire, England, is aimed at complementing TotalEnergies’ renewable energy assets in the country.
The West Burton B power station, which has a total output of 1.3 gigawatts, comprises three combined-cycle gas turbines and a small battery storage facility. The acquisition will significantly strengthen TotalEnergies’ trading capacity in the UK, enabling the company to optimize its energy production and supply capabilities.
TotalEnergies plans to divest half of the asset acquired from EIG, given the size of its renewables portfolio in the UK. The company has been actively expanding its renewable energy assets globally, with a focus on solar and wind power.
“This deal is a strategic move to enhance our energy production and trading capabilities in the UK,” said Patrick Pouyanné, Chairman and CEO of TotalEnergies. “The West Burton B power station is a high-quality asset that will complement our existing renewable energy portfolio in the country. We look forward to integrating the plant into our operations and optimizing its performance.”
The acquisition is subject to regulatory approvals and is expected to be completed in the second half of 2023. TotalEnergies has committed to investing in the UK’s energy infrastructure and creating jobs in the sector.
EIG Global Energy Partners, a leading energy investment firm, has been the owner and operator of West Burton B power station since its construction in 2013. The company has been actively involved in the development and financing of energy projects globally.
“We are pleased to have reached an agreement with TotalEnergies for the sale of West Burton B power station,” said R. Blair Thomas, CEO of EIG Global Energy Partners. “The transaction demonstrates our ability to create value in the energy sector and our commitment to supporting the transition to a low-carbon economy.”
TotalEnergies SE is a global energy company with operations in over 130 countries. The company is committed to providing affordable, reliable, and clean energy to its customers while reducing its carbon footprint.
EIG Global Energy Partners is a leading energy investment firm with a focus on developing and financing energy projects globally. The company has a strong track record of creating value in the energy sector and supporting the transition to a low-carbon economy.
What This Means For Total Energies
1. Diversification of energy mix: The addition of a gas-fired power plant to TotalEnergies’ portfolio diversifies its energy mix in the UK, reducing dependence on renewable energy sources and enhancing its ability to meet demand during periods of low renewable output.
2. Enhanced energy trading capabilities: The acquisition strengthens TotalEnergies’ energy trading capabilities in the UK, enabling the company to optimize its energy production and supply capabilities, and providing a competitive edge in the market.
3. Increased market share: The acquisition expands TotalEnergies’ presence in the UK energy market, increasing its market share and reinforcing its position as a significant player in the sector.
In Essence
Total Energies has shown lots of commitment in ensuring diversity in energy sector. The purchase of West Burton B power station by TotalEnergies SE is a plus to enhances the company’s energy mix, trading capabilities, market share, and commitment to supporting the low-carbon transition in the UK, while reinforcing its position as a significant player in the UK energy market.
