The energy company TotalEnergies has signed a strategic agreement with EPH to acquire 50% of its flexible power generation platform in Western Europe. The transaction was valued at €10.6 billion, and is being carried out entirely through the issuance of shares, making EPH one of TotalEnergies’ major shareholders.
The drive and integration of gas to electricity
The agreement creates a joint venture that will operate gas-fired and biomass-fired power plants. biomass power plantsas well as electrical storage systems in countries such as Italy, the United Kingdom, Ireland, the Netherlands and France. Overall, the portfolio includes more than 14 GW in operation or under construction and an additional 5 GW under development.
The company is committed to the synergy between intermittent renewable generation and flexible generation as part of its Clean Firm Energy vision. This alliance enables it to improve its capacity to respond to growing European energy demand, especially from data centers, while strengthening its role as an LNG supplier in the region.
The acquisition will increase free cash flow per share from the first year, with an expected $750 million per year in additional net income. This brings forward the expected profitability of the Integrated Energy segment, originally planned for 2028, to 2027.
Following the inorganic growth resulting from this transaction, TotalEnergies adjusts its net capital expenditure forecast for 2026-2030, reducing it by $1 billion per year. At the same time, it raises its expected return on capital employed in Integrated Energy, projecting it from 10% to 12% over a five-year horizon.
The creation of this joint energy platform establishes TotalEnergies as a benchmark in the integration of gas and electricity in Europe. Moreover, its geographic and technological diversification enables it to cover the entire spectrum of the energy chain, from LNG supply to power generation, with a focus on sustainability and shareholder returns.
Source and photo: TotalEnergies