TotalEnergies has closed a deal with EIG to acquire the West Burton Energy gas-fired power plant, valued at more than $540 million. This acquisition will enhance TotalEnergies’ renewable energy generation capacity in the United Kingdom, with the aim of supplying 1.8 million homes.
West Burton B gas-fired power plant
The gas-fired power plant is located in Nottinghamshire, England, and has three combined cycle gas turbines(CCGT) with a total capacity of 1.3 GW. It began operations in 2013 and has remained one of the most advanced plants in the country. In 2018, a 49 MW battery storage system was added, increasing its capacity and operating efficiency.
TotalEnergies currently has 1.1 GW of installed capacity and 4.5 GW under development in the country. The company plans to reverse the investment of 50% of the acquired assets, assessing its need for gas-fired generation capacity at 700 MW.
This will also enhance its ability to provide more affordable, available and sustainable energy to its 300,000 customers in the country. Leveraging its position in natural gas production, where it operates 30% of the projects, TotalEnergies will supply this plant plant efficiently.
Totalenergies renewable energy capacity
With this acquisition, Totalenergies’ share price in its global portfolio increases positively, which has enabled TotalEnergies’ flexible power generation investment. For example, its gross capacity amounts to approximately 7 GW, complementing its 23 GW total.
Stéphane Michel, President of Gas, Renewable Energies and Power at TotalEnergies, expressed his enthusiasm: “I am delighted to welcome the West Burton B team to TotalEnergies. This acquisition contributes to our integrated strategy in the United Kingdom, combining renewable and flexible generation capacity. It also complements our 1.1 GW Seagreen offshore wind farm and allows us to accelerate the development of our integrated energy activities in generation, marketing and distribution in this market.“
Finally, Michel explained that“the agreement also contributes directly to our ROACE target for 2028 of around 12% in this business sector.” It is important to note that this transaction is subject to the authorization of the competent authorities.
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Source: TotalEnergies
Photo: Shutterstock
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