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TotalEnergies said in a statement that EPG’s gas-fired and biomass power plants and batteries in Italy, the United Kingdom and Ireland, the Netherlands, and France are valued at 10.6 billion euros ($12.3 billion).
Under the new agreement, EPH will receive the equivalent of 5.1 billion euros in TotalEnergies shares.
The transaction will result in the creation of a joint venture owned 50/50 by TotalEnergies and EPH, which will be responsible for the industrial management of the assets and the business development, while each company will market its share of production under a tolling arrangement with the joint venture.
Added value
TotalEnergies said this transaction is fully consistent with its integrated power strategy and will strengthen its position in European electricity markets by enhancing the complementary relationship between intermittent renewable power generation and flexible power generation
It will allow TotalEnergies to expand its power trading activities across Europe and develop its “clean firm power” offering to its customers.
Furthermore, leveraging TotalEnergies’ “strong” position in supplying LNG to Europe, this transaction enhances the company’s ability to diversify value creation along the gas value chain, particularly between the United States and Europe,” it said.
“The additional net electricity production from the transaction, estimated at 15 TWh/y, will enable the company to capture added value to approximately 2 Mtpa of LNG,” TotalEnergies said.
The transaction covers a portfolio of more than 14 GW gross capacity of flexible generation assets in operation or under construction.
This primarily includes gas-fired power plants, biomass power plants and battery systems, which benefit from secured capacity revenues representing 40 percent of the gross margin, allowing TotalEnergies to strengthen its presence in the most profitable European electricity markets, the company said.
The acquisition scope also includes about 5 GW of projects under development.
Mid-2026
TotalEnergies said the transaction is “immediately accretive” to its shareholders.
Over the next five years, TotalEnergies expects an increase in available cash flow of about $750 million per year, which “far exceeds the additional dividend requirement for the newly issued shares.”
As a result of this transaction, the integrated power segment will generate positive free cash flow and contribute to shareholder returns as early as 2027 compared to 2028 previously, the company said
Due to this accelerated inorganic growth within the integrated power segment, the company is lowering its annual net Capex guidance by $1 billion per year to $14-16 billion per year for 2026-2030, of which $2-3 billion is for integrated power, while maintaining its 2030 electricity generation target of 100-120 TWh.
TotalEnergies said the transaction is subject to the legal information and consultation process of the relevant employee representatives and to the approval of the competent authorities.
Completion is expected mid-2026.
“This acquisition marks another major milestone in TotalEnergies’ strategy to build an integrated electricity player in Europe,” said Patrick Pouyanné, chairman and CEO of TotalEnergies.
“Given our position as the number one gas supplier in Europe, this transaction enables us to fully capitalize on gas-to-power integration and create added value for our LNG chain, independently of oil cycles,” he said.
“We are convinced that this partnership will create lasting value for our shareholders and are also pleased to welcome a new long-term European shareholder who is fully committed to TotalEnergies’ transition strategy,” said Pouyanné.