TotalEnergies To Acquire SunPower’s Commercial And Industrial Solar Business For US$250 Million

    TotalEnergies To Expand Reach In US Business To Business Solar Distributed Generation; SunPower To Focus And Accelerate Growth In Residential Solar Services

    TotalEnergies and SunPower solar power plant in Prieska, South Africa. (Image Courtesy Of TotalEnergies/ Zylberman Laurent)

    TotalEnergies announced it has signed a definitive agreement with SunPower to purchase its commercial and industrial solutions (CIS) business for US$250 million, including US$60 million of earn-out subject to regulatory evolution. TotalEnergies is the majority shareholder of SunPower, a solar technology and energy services provider.

    This acquisition is another step in TotalEnergies’ roadmap to develop its distributed generation business, currently accounting to close to 500 MW in operation worldwide. It will allow TotalEnergies to extend its distributed generation business footprint to the United States and to develop more than 100 MW of additional capacity per year. TotalEnergies believes the deal creates synergies with its large-scale solar energy portfolio in the United States and enables business-to-business (B2B) customers to benefit from more comprehensive energy solutions and new capabilities in financing and project ownership.

    As for SunPower, this operation follows a previous announcement that it would focus on its high-growth residential business, offering a superior customer experience with a growing ecosystem of innovative products and services, hence exploring strategic options for the CIS business. The deal appears to fit TotalEnergies and SunPower’s respective strategies and could help both companies better serve industrial, commercial, and residential customers.

    “With this acquisition, TotalEnergies is further investing to grow its distributed generation activity in the United States and support its B2B customers in meeting their sustainable development goals,” said Vincent Stoquart, senior vice president of renewables for TotalEnergies. “It is a new milestone in our renewable development in the country, where we are targeting 4 GW of solar capacity by 2025. This will also give SunPower additional resources to focus on the growing residential market. We look forward to welcoming the commercial and industrial teams and ensuring the continuity of TotalEnergies’ commitment in this business as we integrate this high-quality portfolio of products and customers.”

    “TotalEnergies is the ideal partner for our CIS business to take advantage of the growing commercial market and opportunities like community solar and front-of-meter storage,” said Peter Faricy, CEO of SunPower. “The sale enables SunPower to focus on creating a superior residential experience, increase our investment in product and digital innovation, and reach more homeowners. The enhanced strategic clarity created by this transaction will help SunPower lead the industry and deliver maximum value to our investors, partners, and customers.”

    Following a thorough process involving discussions with a number of parties, and upon the unanimous recommendation of a special committee of SunPower’s independent directors, the acquisition has been approved by both companies. The transaction is expected to close early Q2 2022 subject to the satisfaction of customary closing conditions. This operation is not expected to reduce TotalEnergies’ majority ownership stake (50.83%) in SunPower.

    Solar Farm In Nanao, Japan (Image Courtesy Of TotalEnergies/ Pierre-Olivier)

    Oil And Gas Divestments

    The same day (February 10) that TotalEnergies announced the SunPower deal, it also announced its decision not to sanction, and therefore withdraw, from the North Platte deepwater project in the US Gulf of Mexico. The decision not to continue with the project was taken as the company has better opportunities of allocation of its capital within its global portfolio.

    TotalEnergies, which held a 60% operated interest in North Platte, alongside its joint-interest owner Equinor (40%) has duly notified its partner and the relevant authorities of its immediate withdrawal from the project, and of its resignation as operator which will be effective following a short transition period to ensure an orderly hand-over of operatorship.