Apollo Funds Secure 50% Texas Solar Stake from TotalEnergies
Deal News | Dec 04, 2024 | Apollo
Apollo has announced that its affiliated funds have agreed to acquire a 50% stake in a substantial Texas solar and battery energy storage system (BESS) portfolio from TotalEnergies. This transaction underscores Apollo's commitment to investing in renewable energy as part of its Clean Transition strategy. The portfolio comprises approximately 2 gigawatts (GW) of solar and BESS assets based within the Texas ERCOT market, strategically spread across three solar projects and two battery storage projects. TotalEnergies will retain a 50% equity stake and will continue operating these projects. Apollo's clean energy strategy aims at deploying up to $50 billion in climate investments by 2027 and further plans could see this figure surpass $100 billion by 2030. Apollo has already committed around $40 billion to energy transition investments over the past five years. The deal, expected to conclude in the last quarter of 2024, is subject to customary closing conditions.
Sectors
- Renewable Energy
- Private Equity
Geography
- United States – The portfolio of solar and BESS projects is located in Texas, USA, and is part of the Texas ERCOT market.
- France – TotalEnergies, the company selling a stake to Apollo, is headquartered in France.
Industry
- Renewable Energy – The article focuses on acquisitions in solar and battery energy storage systems, which are key sectors within the renewable energy industry.
- Private Equity – Apollo, a private equity firm, is involved in the strategic purchase of stakes in energy assets, illustrating activity within the private equity sector.
Financials
- 50% – Apollo acquires a 50% ownership stake in the Texas solar and BESS portfolio.
- 2 GW – The total capacity of solar and BESS assets in the portfolio.
- $40 billion – Total funds deployed by Apollo over the past five years into energy transition and sustainability.
- $50 billion – Target amount Apollo plans to deploy in clean energy and climate investments by 2027.
- $100 billion – The potential investment Apollo sees in clean energy and climate projects by 2030.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Apollo | Buyer | Company | A global alternative asset manager acquiring a 50% stake in the Texas solar and BESS portfolio from TotalEnergies. |
| TotalEnergies | Seller | Company | An energy company selling a 50% stake of its Texas solar and BESS portfolio to Apollo. |
| Brad Fierstein | Apollo Partner | People | A partner at Apollo who commented on the significance of the deal. |