Allianz GI acquires a 50% stake in German battery projects from TotalEnergies
TotalEnergies, the French oil giant, has sold to Allianz Global Investors a 50% share in?11 batteries projects in Germany that are under construction. The companies announced this on Tuesday as the interest in Germany's rapidly growing renewables market grows.
The value of the transaction was not disclosed by the companies.
The pair said they would invest 500 million euro ($581million) to finish the construction. 70% of that amount will be funded by debt.
The project will have 789 megawatts of power and be operational in 2028.
Total's goal to build 100 gigawatts gross installed renewable power by 2030 is a top priority. Germany, Europe’s largest energy market, has been identified as the first step.
It bought several German battery manufacturers in the belief that they would be needed more and more to balance electricity grids. This is done by storing excess renewable energy when there is a lot of?wind or?sun, then resupplying it when demand is high.
TotalEnergies also regularly sells 50% stakes in its renewable assets after it invests in their construction. It confirmed this on Tuesday.
Stephane Michel said that this transaction is in line with Total's business model and allows us to optimize?capital in our integrated power operations and improve profitability in the sector.
Allianz has invested previously in wind and solar farm?as?well as green hydrogen. This is its first direct equity investment to a portfolio battery storage projects.
The shift to cleaner energy is dependent on a strong infrastructure... "The shift to 'cleaner energy depends on strong infrastructure...
TotalEnergies will be operating the sites.
(source: Reuters)
