TotalEnergies expands U.S. solar footprint
TotalEnergies said on Thursday it's buying SunPower's commercial and industrial solar business for $250 million as the France-based multinational oil giant expands its U.S solar portfolio.
Why it matters: European oil majors are increasingly moving into renewables, EV charging and other areas outside their core fossil fuel businesses.
Total is among the European majors aiming to be a net-zero emissions business by 2050.
Driving the news: TotalEnergies is already a majority shareholder in SunPower, which has previously signaled that its focus will be on its residential business.
The intrigue: Via CNBC, "The $250 million deal includes $190 million cash up front, plus another $60 million to be paid if an extension to the solar investment tax credit is passed, a company spokesperson said."
By the numbers: The transaction will enable TotalEnergies to "extend its distributed generation business footprint to the U.S. and to develop over 100 MW of additional capacity per year," the announcement states.
The company hopes to have an overall U.S. solar portfolio of 4 gigawatts of capacity by 2025, it said.