TotalEnergies Divests 50% Stake in UK Gas Power Plant
TotalEnergies Divests 50% Stake in UK Gas Power Plant

TotalEnergies Divests 50% Stake in UK Gas Power Plant

  • 19-Dec-2024 3:30 PM
  • Journalist: Italo Calvino

TotalEnergies has announced the sale of 50% of its shares in West Burton Energy to EPUKI, the UK subsidiary of EPH. West Burton Energy, a company wholly acquired by TotalEnergies in June 2024, includes a 1.3 GW gas-fired power plant and a 49 MW battery storage system located in the United Kingdom. At the time of acquisition, TotalEnergies had declared its intention to resell half of the shares, and this transaction fulfills that commitment. The power plant and battery system will now be operated through a joint venture between TotalEnergies and EPUKI.

This strategic partnership aligns with TotalEnergies’ broader goals in the UK energy market. By maintaining 50% ownership, the company optimizes its net flexible generation capacity at 700 MW, a level that complements its significant investments in renewable energy. This balance of flexible and renewable assets ensures that TotalEnergies can efficiently support its renewable energy growth while enhancing grid stability and reliability in the region.

Sophie Chevalier, Senior Vice President of Flexible Power & Integration at TotalEnergies, expressed enthusiasm about the collaboration, stating, “We are pleased to partner with EPH, a recognized and experienced power producer in the United Kingdom. Through this operation, we are not only optimizing our generation capacity but also creating synergies between flexible and renewable energy systems. This approach directly supports our Integrated Power business objectives, which include achieving a 12% return by 2030.”

This deal represents a significant step in TotalEnergies’ strategy to integrate flexible power generation with renewable assets, strengthening its position in the UK’s energy transition. The joint venture with EPUKI highlights TotalEnergies’ commitment to sustainable and profitable energy solutions, ensuring a robust contribution to its long-term goals in the region.

TotalEnergies has maintained a strong presence in the United Kingdom for over 60 years, employing more than 1,800 people across various sectors of the energy value chain. As one of the country’s leading oil and gas operators, the company manages approximately 30% of gas production from the UK Continental Shelf, achieving an average daily output of 142,000 barrels of oil equivalent (boe/d) in 2023, based on its share.

In the UK, TotalEnergies is advancing its Integrated Power strategy, which merges renewable energy production with flexible power generation capabilities. Its renewable energy portfolio includes the Seagreen offshore wind farm, contributing 1.1 GW of gross installed capacity, along with 4.5 GW of projects under development. This portfolio was further expanded in 2024 with the acquisition of gas-fired power plants (CCGT) totaling 1.3 GW of capacity.

TotalEnergies is also a significant supplier of gas and electricity to businesses and public sector organizations across the UK. Beyond energy supply, the company offers a range of electric vehicle (EV) charging solutions and markets a variety of petroleum products, including lubricants, aviation fuel, bitumen, and specialty fluids.

This multi-faceted approach reflects TotalEnergies’ commitment to supporting the UK’s energy transition while maintaining its leadership in the industry. By integrating renewable and flexible power solutions, the company aims to deliver reliable energy, reduce emissions, and meet the evolving needs of businesses and consumers alike.

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TotalEnergies Divests 50 Stake in UK Gas Power Plant
  • 19-Dec-2024 3:30 PM
  • Journalist: Italo Calvino