French energy conglomerate TotalEnergies and Brazilian renewable energy developer Casa dos Ventos (CDV) have created a joint venture (JV ) to develop, build and operate a 12GW renewable portfolio in Brazil.

CDV will hold a 66% stake in the JV, while the remaining 34% will be held by TotalEnergies .

TotalEnergies will pay a $550m consideration and up to $30m in earn-out to complete the acquisition.

The deal also gives TotalEnergies the option to purchase an additional 15% stake in the JV after a period of five years. 

The portfolio includes 700MW of operational onshore wind capacity and 1GW of onshore wind capacity, which is currently under construction.

CDV’s portfolio also comprises 2.8GW of onshore wind and 1.6GW of solar capacity currently under advanced development. This capacity has a commercial operation date within five years.

TotalEnergies intends to expedite the JV’s growth with its established presence in the corporate power purchase agreement market, while CDV will provide its ‘deep knowledge’ of the Brazilian market.

TotalEnergies chairman and CEO Patrick Pouyanné said: “After Adani Green in India and Clearway in the United States, I am delighted with this new major partnership in Brazil, with Casa dos Ventos, the leader in onshore wind energy.

“With this transaction, TotalEnergies acquires not less than a leading position in the Brazilian renewable energy market, one of the most dynamic merchant markets in the world.

“This market fits our strategy of taking advantage of the growth of the deregulated power markets, which is crucial to the energy transition.”

CDV founder and president Mario Araripe said: “The partnership between Casa dos Ventos and TotalEnergies was structured to maximise the complementarities and synergies between the companies.

“We are confident that this partnership positions us in a strategic role to lead the sustainable energy agenda in Brazil.”