TotalEnergies, CDV partner on renewable energy projects in Brazil

French oil and gas company TotalEnergies has formed a joint venture with Brazilian energy company Casa dos Ventos (CDV) to jointly develop 12GW of renewable energy projects in Brazil.

The joint venture, to be owned 34% by TotalEnergies and 66% by Casa dos Ventos, will develop, build, and operate the renewable energy portfolio of the latter.

A cash payment of $550 million and up to $30 million in earn-out will be made by TotalEnergies to acquire the stake in the renewable power joint venture.

The Casa Dos Ventos portfolio of renewable energy projects in Brazil consists of 700MW of operating onshore wind capacity, 1GW of onshore wind under construction, 2.8GW of onshore wind, and 1.6 GW of solar projects in well-advanced development stage.

Under the terms of the deal, TotalEnergies will have the option to purchase an additional 15% equity stake in the clean energy joint venture after five years.

TotalEnergies, Casa dos Ventos to jointly develop 12GW renewable energy projects in Brazil. Photo courtesy of Andreas from Pixabay.

Patrick Pouyanné — TotalEnergies chairman and CEO said: “After Adani Green in India and Clearway in the United States, I am delighted with this new major partnership in Brazil, with Casa dos Ventos, the leader in onshore wind energy.

“With this transaction, TotalEnergies acquires not less than a leading position in the Brazilian renewable energy market, one of the most dynamic merchant markets in the world. This market fits our strategy of taking advantage of the growth of the deregulated power markets, which is crucial to the energy transition.

“With a total of 12 GW in operation, construction and development, both wind and solar, this transaction is an additional step in TotalEnergies ambition to reach 100 GW of renewable production by 2030 and in its transformation into a sustainable and profitable multi-energy company.”

Casa dos Ventos is said to have developed one in every four operating wind projects in Brazil.

In addition, the Brazilian energy company holds approximately 20GW of wind and solar projects under development in the country.

The newly established renewable energy joint venture will own the right to acquire the current and new projects of Casa dos Ventos after they reach the execution stage.

Mario Araripe — Casa dos Ventos founder and president, commenting on the partnership with TotalEnergies to develop renewable energy projects in Brazil said: “The partnership between Casa dos Ventos and TotalEnergies was structured to maximize the complementarities and synergies between the companies.