TotalEnergies acquires UK gas power plant for £450mn
Energy major TotalEnergies has signed an agreement with EIG, an institutional investor in the energy sector, to acquire West Burton Energy, which owns the West Burton B gas-fired power plant in Nottinghamshire, for £450mn ($576mn), according to a statement released on June 6.
West Burton B comprises three combined-cycle gas turbines (CCGT) with a total output of 1.3 GW. Commissioned in 2013, it supplies power to approximately 1.8 million homes. A 49 MW battery storage system was added in 2018.
TotalEnergies stated that this acquisition enhances its renewable power generation capacity in the UK with a flexible asset that mitigates intermittency, enabling the supply of firm power to customers. Given the size of the company’s renewable portfolio in the country, which currently stands at 1.1 GW of gross installed capacity and 4.5 GW under development, TotalEnergies assesses its need for gas-based power generation capacity at 700 MW. Consequently, the company plans to divest 50% of the acquired assets.
The deal will also allow TotalEnergies to strengthen its trading capabilities in the UK’s electricity and gas markets. Additionally, the company will supply the plant by leveraging its positions in natural gas production in the country, where it operates 30% of the projects.
This acquisition brings TotalEnergies’ worldwide flexible power generation portfolio to around 7 GW of gross capacity, in addition to its 23 GW of gross renewable capacity.
“This acquisition contributes to our integrated strategy in the UK, which combines renewable and flexible generation capacity. It complements our 1.1 GW Seagreen offshore wind farm and allows us to accelerate the development of our Integrated Power activities in power generation, trading, and marketing in this market,” said Stephane Michel, president of gas, renewables, and power at TotalEnergies. “The deal also contributes directly to our 2028 ROACE target of around 12% in this business sector.”
The transaction is subject to authorisation from the competent authorities.