Repsol has announced that it has signed an agreement to acquire Houston, Texas-based renewable development company ConnectGen for $768 million (€715 million) from global renewable energy development platform Quantum Capital Group, 547 Energy.
In a statement published on its website, Repsol assures that the operation represents a new milestone in Repsol Renewables’ strategy to strengthen its position as a global actor in the renewable energy business, “increasing its international footprint and contributing to its goal of 20,000 megawatts installed. renewable generation capacity for 2030”.
Repsol also described its purchase in the statement as an important step to accelerate its multi-energy transformation towards zero net emissions by 2050.
ConnectGen is a renewables developer with a multi-technology approach and comprehensive in-house development capabilities, particularly in U.S. onshore wind projects, according to the statement, which notes that the company’s development portfolio includes 20,000 MW of onshore wind energy storage , solar and energy. projects with varying levels of maturity in the most attractive US energy regions.
“This pipeline represents Repsol’s entry into the US onshore wind industry,” Repsol said in the statement.
“ConnectGen will also enable Repsol to build strong renewable capacity in the US and strong international experience, adding a significant wind power growth platform that complements the solar development and storage capabilities acquired through the purchase of 40 percent to Hecate Energy in 2021.” added.
The current employees of ConnectGen, including senior management, will join the Repsol Renewables team, the press release highlights. The deal is expected to close before the end of the year, subject to customary regulatory approvals, according to the statement.
“This transaction is another step in our firm commitment to transform our industry and become a net zero emissions company by 2050, maintaining our profitable growth, diversification and multi-energy focus and ensuring shareholder returns” , said Josu Jon Imaz, CEO of Repsol. release
“The addition of ConnectGen accelerates our commitment to renewable generation in one of the markets with the most potential for future growth. In this regard, bringing on board their valuable team of experts is key to ensuring our successful future growth with robust profitability in the market,” Imaz added.
Wil VanLoh, founder and CEO of Quantum, said: “Quantum is committed to driving the energy transition by building best-in-class platforms in the renewable energy and climate technology space.”
“It has been a privilege to work alongside Caton Fenz (CEO of ConnectGen) and the entire ConnectGen team to build one of the leading renewable energy development platforms in North America,” added VanLoh.
“All of us at Quantum and 547 Energy look forward to seeing Repsol turn these development projects into operating assets that help power the US economy with clean renewable electricity over the next decade,” VanLoh said.
US renewable market
In its statement, Repsol said that the North American renewable market is one of the largest and “with the greatest growth potential in the world”.
“The Global Wind Energy Council predicts that in total, 60 gigawatts of onshore wind capacity is expected to be added over the next five years in North America, of which 92 percent will be built in the US and the rest in Canada “, explained Repsol. indicated in the statement.
“In addition, the American Inflation Reduction Act has provided new support and long-term visibility for the expansion of renewable energy in the United States. Based on this policy, it is expected that the by 2027 annual U.S. wind and solar photovoltaic (PV) capacity additions double compared to 2021,” he added.
Repsol entered the United States following the purchase of 40 percent of Hecate Energy in 2021, the company said in the statement. In a separate statement posted on the company’s website in May 2021 announcing its Hecate deal, Repsol said the purchase will make it a major player in the solar storage and battery development market of the US through its participation in Hecate Energy’s renewable project development business.
“Thanks to this transaction, the Spanish multi-energy company advances in its objectives of geographical diversification of its renewables business, complementing its capabilities, improving its portfolio and adding a solid platform with strong growth potential,” Repsol pointed out in the its statement of May 2021.
“The operation represents a substantial leap forward for Repsol to achieve the goals of low emissions generation capacity and the internationalization of this business established in the company’s 2021-2025 Strategic Plan,” he added.
In its latest statement, Repsol has highlighted that its ambition in the US is to have an installed capacity of 2,000 MW in 2025 and more than 8,000 MW in 2030. The company’s 2021-2025 Strategic Plan foresees reaching 6,000 MW of installed capacity of renewable generation by renewable generation. and 20,000 MW in 2030, according to Repsol’s latest release.
Global generation of renewable energy
According to the Energy Institute’s (EI) first annual World Energy Statistical Review and 72nd overall, which was released earlier this year, the US had the second generation of renewable energy by 2022 .
That figure was 6.87 exajoules, according to the report, which noted that U.S. renewable energy generation in 2022 marked 15 percent year-over-year growth and 16.8 percent growth in ‘total renewable energy last year. Annual growth from 2012 to 2022 was 11.3 percent, according to the review.
China had the most renewable energy generation in 2022 at 13.2 exajoules, the report revealed. This figure represented a year-on-year growth of 18.3% and 32.3% of total renewable energy generation by 2022. From 2012 to 2022, China’s total renewable energy generation has grown by 25.2 percent year-on-year, according to the review.
Germany ranked third in the EI 2022 renewable energy generation ranking with 2.33 exajoules. This figure represented 9.5 percent year-on-year growth and 5.7 percent of total renewable energy generation by 2022. Germany has seen 6.2 percent year-on-year growth in renewable energy generation from 2012 to 2022, the review notes.
The review revealed that total global renewable energy generation last year was 40.86 exajoules. This figure marked a 14% year-on-year increase, the review noted.
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