TotalEnergies Considers Divesting Stake in German BESS Projects
TotalEnergies is reportedly exploring the sale of approximately 50% stake in a portfolio of Battery Energy Storage System (BESS) projects in Germany, developed through its acquisition of Kyon Energy.
Background on Acquisition and Projects
In January 2024, the oil and gas giant acquired German BESS developer Kyon Energy for about €90 million (US$105 million). Shortly after, TotalEnergies made a final investment decision and began construction on six BESS projects in Germany with a combined capacity of 321MW.
Current Sale Considerations
According to Bloomberg and sources cited by Energy-Storage.news, TotalEnergies is seeking an investor for a ready-to-build portfolio totaling around 800MW. The company is also open to selling a stake in the operating company Kyon Energy itself.
[translate:“It’s common for Total and other big players to sell down assets once they reach a certain maturity.”]
A source familiar with the situation explained that this sales process aligns more with TotalEnergies’ internal strategy rather than reflecting changes in the broader industry.
Market Context
Germany remains one of Europe’s most appealing markets for energy storage due to its well-developed wholesale energy market, making this an advantageous time for TotalEnergies to consider divestment.
Summary: TotalEnergies is contemplating selling a significant stake in its German BESS portfolio to recycle capital, reflecting a typical strategy among large energy companies to manage mature assets efficiently.
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