TotalEnergies has signed an agreement with EIG, an institutional investor in the global energy sector, to acquire all shares of West Burton Energy for an enterprise value of £450 million. This acquisition is part of TotalEnergies’ strategy to become an integrated electricity player.
West Burton Energy owns and operates the West Burton B gas-fired power plant in Nottinghamshire, England. The plant, commissioned in 2013, features three combined-cycle gas turbines (CCGT) with a total output of 1.3 GW, supplying power to approximately 1.8 million homes. In 2018, a 49 MW battery storage system was added to enhance its capabilities.
This acquisition complements TotalEnergies’ renewable power generation capacity in the UK by adding a flexible asset that addresses intermittency, ensuring a stable power supply to customers. TotalEnergies currently has 1.1 GW of gross installed renewable capacity and 4.5 GW under development in the UK. To align with its strategic needs, TotalEnergies plans to divest 50% of the acquired gas-based power generation capacity, estimated at 700 MW.
The deal will also bolster TotalEnergies’ trading capabilities in the UK’s electricity and gas markets, enhancing its ability to provide affordable, reliable, and sustainable energy to its 300,000 UK customer sites. Additionally, TotalEnergies will leverage its natural gas production in the country, where it operates 30% of the projects, to supply the plant.
Globally, this acquisition increases TotalEnergies’ flexible power generation portfolio to around 7 GW of gross capacity, alongside its 23 GW of gross renewable capacity.
“I am delighted to welcome the West Burton B team to TotalEnergies. This acquisition aligns with our integrated strategy in the UK, combining renewable and flexible generation capacity. It complements our 1.1 GW Seagreen offshore wind farm and accelerates the development of our Integrated Power activities in power generation, trading, and marketing in this market,” said Stéphane Michel, President, Gas, Renewables and Power at TotalEnergies. “The deal also contributes directly to our 2028 ROACE target of around 12% in this business sector.”
