TotalEnergies Acquires 1.5 GW of Texas Flexible Power Generation Capacity

TotalEnergies has inked a deal with TexGen, a U.S.-based firm, to acquire three gas-fired power plants with a total capacity of 1.5 GW in Texas for $635 million as part of its development as an integrated power player.

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The three facilities, which are linked to ERCOT (Electric Reliability Council of Texas), the country’s second-largest power market, are as follows:

• The Wolf Hollow I plant, located in the suburbs of Dallas, has a combined-cycle gas turbine (CCGT) capacity of 745 MW.
• The Colorado Bend I plant, south of Houston, with a 530 MW CCGT and a 74 MW open-cycle gas turbine (OCGT), gives additional flexibility to handle very high demand, particularly in the summer.
• The La Porte facility, southeast of Houston, has a 150 MW OCGT.

major adaptable assets, positioned near Dallas and Houston, will meet the fast-growing energy demands of major areas and help to counterbalance the intermittent nature of renewable energy production. Their significance was recently underlined after weather occurrences in Texas that hindered renewable energy generation or caused high seasonal peak demand.

TotalEnergies’ 1.5 GW of additional flexible production capacity will complement its renewable capacity in Texas, which presently stands at 2 GW gross installed, 2 GW under construction, and more than 3 GW under development, and will boost its trading capabilities in the gas and power markets.

This latest acquisition reaffirms TotalEnergies’ commitment to making energy more accessible, affordable, and sustainable for Texas’ 26 million ERCOT customers.

“We are ecstatic about the agreement we signed with TexGen to acquire 1.5 GW of CCGT in ERCOT.” Following the signing of multiple corporate PPAs in the last few years, as well as the recent start-up of the utility-scale Myrtle solar facility, this transaction represents a significant milestone for our Integrated Power strategy in the ERCOT market. These facilities will allow us to supplement our intermittent renewable assets, deliver stable power to our customers, and profit from the volatility of electricity prices’, said Stephane Michel, President Gas Renewables & Power at TotalEnergies. “This acquisition will contribute positively to our profitability target of 12% ROACE by 2028 for our Integrated Power business segment.”

SOURCE:https://totalenergies.com/media/news/press-releases/united-states-totalenergies-acquires-15-gw-flexible-power-generation