In an ambitious move to strengthen its presence in the energy market, TotalEnergies recently signed an agreement to acquire gas-fired power plants worth $635 million.
Key gas-fired power plants in the Agreement
The transaction involves three gas-fired power plants with a total capacity of 1.5 gigawatts (GW) located in a southern U.S. state. These installations are connected to ERCOT (Electric Reliability Council of Texas).
The first facility, Wolf Hollow I, is a 745MW combined-cycle gas turbine (CCGT) power plant located on the outskirts of a major Texas city. The second, Colorado Bend I, with a 530MW CCGT and a 74MW open-cycle gas turbine (OCGT), is located south of another major Texas city. The third, in La Porte, includes a 150MW OCGT and is located southeast of the same Texas city.
Impact and Importance of New Acquisitions
These flexible assets, strategically positioned near two major metropolises, will meet the growing demand for energy in these cities. They will also compensate for the intermittent nature of renewable energy production. The addition of 1.5GW of flexible generation capacity acquired by TotalEnergies will complete its renewable energy capacity in Texas.
TotalEnergies’ commitment to Sustainable Energy
This latest acquisition underscores TotalEnergies’ commitment to providing more available, affordable and sustainable energy to ERCOT’s 26 million customers in Texas. In affet, Stephane Michel, President Gas, Renewables & Power at TotalEnergies, expressed his enthusiasm about the agreement signed with TexGen.
Michel also pointed out that this acquisition will contribute positively to the company’s profitability objective, with a return on capital employed (ROACE) of 12% by 2028 for its Integrated Power business segment. Completion of this transaction remains subject to the approval of the relevant authorities.
TotalEnergies’ acquisition of gas-fired power plants in Texas represents a strategic milestone in the evolution of its integrated business model.