TotalEnergies buys €5.1bn stake in Křetínský power projects
Deal will create 50-50 joint venture and make EPH one of French oil major’s biggest shareholders
TotalEnergies is making a big bet on gas-fired electricity generation by investing €5.1bn in a portfolio of projects controlled by Czech billionaire Daniel Křetínský.
The deal will create a 50-50 joint venture between Total and Křetínský’s EPH, giving the French company a stake in 14GW of gas-fired and biomass power plants and battery storage projects in France, Italy, the UK and the Netherlands, including a 5GW pipeline under development.
EPH will receive Total shares worth €5.1bn, making the Křetínský-led vehicle one of the oil and gas major’s largest shareholders with a 4 per cent stake.
The investment adds to Total’s strategy of continuing to invest in oil and gas production while developing a portfolio of electricity-generating assets.
Křetínský said the deal would help EPH diversify and reduce its geographic exposure that was concentrated in Europe. Last month, he exited a major German project by selling a minority stake in Thyssenkrupp’s steel operation, allowing the German conglomerate to pursue talks with Indian magnate Naveen Jindal.
Total’s Integrated Power division has 36GW of renewable electricity, which it combines with more flexible gas-powered plants and batteries. Gas-powered plants will account for 12.5GW of the portfolio of the EPH joint venture.
The investment, which reduces the focus of Total’s electricity division on renewables days after chief executive Patrick Pouyanné attended the COP30 climate conference in Brazil, would result in its Integrated Power division generating free cash flow in 2027 — a year earlier than forecast.
Pouyanné said the deal would strengthen TotalEnergies’ ability to provide “reliable, competitive and low-carbon energy to our customers”.
Křetínský started his business empire in the energy sector but has since added investments in Royal Mail, French retailer Casino and football clubs West Ham and Sparta Prague.