Total Buys Majority Stake in SunPower
The solar power industry is consolidating. In fact, this quarter has seen several mergers and acquisitions in the energy arena, across various forms of energy generation. French Oil and gas company Total is buying 60 percent of U.S. based SunPower, one of the largest solar panel and power plant developers in the United States.
The deal is part of a continuing trend, especially in the wind and solar sectors, of independent companies seeking aid from large multinationals in order to compete with low-cost Chinese competition.
Total is paying $23.25 per share of SunPower’s class A and class B shares. This marks a 49 percent premium over closing price Wednesday. The deal values SunPower’s equity at $2.3 billion.
SEE OTHER TOP STORIES IN THE WDM CONTENT NETWORK
Renewable Geothermal Energy Pumps Up Heat’s Power Potential
Mining Safety: Bioleaching Bacteria Clean Toxic Mine Tailings
The Future of Batteries: A Distributed Approach to Energy Storage
Check out the latest issue of Energy Digital!
“Total’s commitment and global presence will help accelerate our growth and solidify our position in the increasingly competitive solar sector,” says SunPower CEO Tom Werner.
“With Total’s $1 billion credit support agreement, solar research and development investments and the other resources available through its global network, we have taken the next step in positioning our business for continued growth and long-term success,” he added. “Our relationship with Total will improve our capital structure enabling SunPower to accelerate our power plant and commercial development businesses, and expand our manufacturing capacity with lower cash requirements.”
First Solar will now take the reigns from SunPower as the largest independent U.S. solar panel developer.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.