French oil and gas company TotalEnergies has agreed to acquire a 50% stake in the US-based Clearway Energy Group (CEG) from Global Infrastructure Partners (GIP) for $1.6bn.

Under the deal, GIP will also receive an interest of 50% minus one share in one of TotalEnergies’ subsidiaries, which owns a 50.6% stake in US-based solar company SunPower.

CEG develops renewable energy projects and holds a 42% economic interest in its listed subsidiary, Clearway Energy (CWEN), into which projects are placed once they reach commercial operation. 

Through its subsidiary CWEN, Clearway has 7.7GW of wind and solar capacity in operation.

The firm has a 25GW pipeline of renewable and storage projects, 15GW of which is currently in advanced stages of development.

TotalEnergies said that it will support Clearway’s growth by providing CWEN in the US with access to its power trading capabilities, as well as give it priority on the farm-down of its own developed projects.

The acquisition increases TotalEnergies’ renewable portfolio in the US to more than 25GW.

TotalEnergies chairman and CEO Patrick Pouyanné said: “This transaction perfectly fits with our strategy to make renewable electricity one of our main growth drivers along with liquefied natural gas that we have recently reinforced with the launch of Cameron extension.

“It illustrates our priority to accelerate the transformation of the company to become a sustainable and profitable multi-energy company.”

GIP chairman and CEO Adebayo Ogunlesi said: “We are extremely pleased to partner with TotalEnergies to continue leading the energy transition in the US.

“We are proud of the growth and accomplishments of the Clearway team since our initial investment in 2018, and we are confident that with TotalEnergies as a partner, Clearway will be able to accelerate the deployment of cost-competitive renewable power in the US.”