TotalEnergies further boosts solar business
European oil major TotalEnergies said Thursday that it would acquire the commercial business of solar tech company SunPower Corp., expanding further into the renewables business.
In a statement, the Paris company formerly known as Total said the $250 million deal for SunPower’s commercial and industrial solutions business would help it build out its distributed generation business, which operates about 500 megawatts of power across the globe. Acquiring SunPower’s division will help it develop more than 100 additional megawatts each year and expand its solar footprint both for residential and utility-scale projects. One megawatt is enough to power about 200 homes on a hot summer day.
SunPower, based in San Jose, Calif., with operations nationwide, is aiming to focus more on its residential business.
Vincent Stoquart, senior vice president of renewables at TotalEnergies, said bringing on a segment of SunPower’s business will help it and its customers achieve sustainability goals. TotalEnergies already holds a majority ownership stake in SunPower.
“It is a new milestone in our renewable development in the country, where we are targeting 4 gigawatts of solar capacity by 2025,” Stoquart said. “This will also give SunPower additional resources to focus on the growing residential market.”
For SunPower, the deal will create more clarity for customers about what each company offers, said Peter Faricy, CEO of SunPower.
“TotalEnergies is the ideal partner for our CIS business to take advantage of the growing commercial market and opportunities like community solar and front-of-meter storage,” he said. “The sale enables SunPower to focus on creating a superior residential experience, increase our investment in product and digital innovation, and reach more homeowners.”
The acquisition has already been approved by both companies and is expected to close early in the second quarter.
It’s TotalEnergies’ latest move toward renewables and away from its oil and gas roots as it hopes to appease investors and governments eager to see it reduce its carbon footprint. The company hopes to become carbon neutral by 2050 and has begun to focus on electric vehicle charging stations, alternative fuels and renewable power generation. For example, it announced in November that it would use cow manure to produce biofuels, which it expects will prevent 45,000 metric tons of carbon dioxide emissions annually by substituting fossil fuels with renewable natural gas made from the animal waste.