TotalEnergies to Sell 50% Stake in Polish Biogas Unit to HitecVision
(Bloomberg) -- TotalEnergies SE agreed to sell a 50% stake in its Polish biogas production business to Norwegian investment firm HitecVision AS as part of the oil major’s strategy to boost return on its renewables investments.
The planned stake sale in Polska Grupa Biogazowa at an enterprise value of €190 million ($214 million) is subject to government and regulatory approval, TotalEnergies said in a statement on Wednesday. Bloomberg reported earlier this week that the French firm was working on the sale of interests in its Polish and French renewable gas.
“This transaction will enable PGB to continue its growth in a country where biogas is rapidly developing and is in line with the farm-down business model applied to our renewable assets in order to maximize the profitability of our investments,” Stephane Michel, president of gas, renewables and power at TotalEnergies said in the statement.
The partial divestment of PGB, which was acquired by Total in 2023, comes as falling hydrocarbon prices put pressure on the profits of Big Oil. Meanwhile, the production of biomethane, which is chemically the same as conventional natural gas but is made from decomposing organic material such as agricultural waste, still requires government subsidies and is proving slow to scale up in a profitable manner.
TotalEnergies will invest $500 million on low-carbon molecules in 2025, down from $900 million last year, because the company doesn’t see enough returns on businesses like biogas, Chief Executive Officer Patrick Pouyanne said in February.
“It doesn’t mean that we don’t continue to do it, but we moved to some business models with less capital intensity,” Pouyanne said.
PGB has 20 biogas units in operation in Poland that generate power and heat with a production capacity of more than 450 gigawatt-hours of equivalent biomethane last year, according to Total. In France, TotalEnergies has more than now more than 800 GWh of biogas production capacity.
TotalEnergies also has biogas activities in the US, where took stakes in Clean Energy Fuels Corp. and Vanguard Renewables in 2018 and 2024, respectively.
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