TotalEnergies announced on Monday that it will sell a 50 per cent stake in its North American solar portfolio to global investment firm KKR, in a deal that will bring the energy company $950 million in proceeds, including refinancing.

The transaction covers six utility-scale solar assets and 41 distributed generation projects, primarily located in the United States, according to a company statement.

Under the agreement, TotalEnergies will continue to hold a 50 per cent interest in the 1.4-gigawatt portfolio, which has an enterprise value of $1.25 billion.

It will also sell part of the electricity generated by these assets.

The President of Gas, Renewables & Power at TotalEnergies, Stephane Michel, said the partnership will support the company’s growth in the deregulated North American electricity market, providing strategic flexibility while expanding its renewable energy footprint.

“We are pleased to enter into this new strategic partnership with KKR in North America, a key deregulated electricity market to expand our integrated business model”, Michel said.

“Aligned with our strategy, this transaction unlocks value from newly commissioned assets and further strengthens the profitability of our Integrated Power business.”

The Managing Director at KKR,
Cecilio Velasco, said TotalEnergies is a global leader in renewable energy, and KKR is excited to launch this joint venture.

“TotalEnergies is a renewable energy industry leader globally, and we are thrilled to establish this joint venture with the TotalEnergies team to support their renewables business,” Velasco said.

“We have long been investors in renewables through our infrastructure platform, having committed more than $23 billion to date in energy transition investments. TotalEnergies’ North American solar portfolio is a great fit for us, representing high-quality renewable energy assets with long term contracts.”