TotalEnergies has signed an agreement to acquire West Burton Energy, owner of the 1.3 gigawatt West Burton B gas-fired power plant in Nottinghamshire, England.
The deal values West Burton Energy at $869.4 million.
The acquisition allows TotalEnergies to pair the gas plant’s flexible generation capacity with its growing renewable energy assets in the UK.
This includes the company’s 1.1 GW Seagreen offshore wind farm currently under construction, as well as an additional 4.5 GW of renewable projects in development.
TotalEnergies stated the West Burton B plant, one of the UK’s most advanced when commissioned in 2013, will help mitigate intermittency issues from its renewable sources to enable a firm power supply to customers.
The company assessed needing around 700 MW of gas capacity to complement its renewable portfolio in the country.
“This acquisition contributes to our integrated strategy in the UK, which combines renewable and flexible generation capacity,” said Stéphane Michel, President of Gas, Renewables and Power at TotalEnergies.
“It complements our 1.1 GW Seagreen offshore wind farm and allows us to accelerate the development of our Integrated Power activities in power generation, trading and marketing in this market.”
While gaining the gas plant’s output, TotalEnergies plans to divest 50 per cent of the acquired West Burton B assets.
TotalEnergies will also leverage its 30 per cent stake in UK natural gas production projects to supply fuel to the plant.
This supports the company’s goal of providing affordable, available and sustainable energy to its 300,000 electricity and gas customer sites in Britain.
The acquisition grows TotalEnergies’ worldwide flexible power generation capacity to around 7 GW, complementing its 23 GW gross renewable energy capacity.
Michel noted the deal “contributes directly” to the company’s target of approximately 12 per cent return on average capital employed in its gas, renewables and power business by 2028.
The transaction remains subject to regulatory approval from competent authorities. Financial terms were not disclosed.
