TotalEnergies to buy Scatec’s stake in 822-MW African hydropower JV

Renewable power producer Scatec ASA (OSL:SCATC) announced today an agreement to sell its majority stake in an African hydropower joint venture with 255 MW of operational capacity and a 567 MW development pipeline to French energy major TotalEnergies SE (EPA:TTE).

The transaction concerns the sale of Scatec’s subsidiary SN Power which holds a 51% stake in a joint venture with a portfolio comprising the operational 255-MW Bujagali hydropower plant in Uganda and two schemes under development -- the 361-MW Mpatamanga project in Malawi and the 206-MW Ruzizi III at the border of Rwanda, Democratic Republic of the Congo and Burundi.

TotalEnergies, which owns interests in hydropower projects with a gross capacity of 3.7 GW worldwide, separately noted that it is taking a 28.3% shareholding in the Bujagali plant and minority stakes in the Mpatamanga and Ruzizi III projects.

Scatec’s joint venture with Norfund and British International Investment (BII), which share the remaining 49% shareholding, was launched in 2021 between Scatec and the Norwegian investment fund, as part of the SN Power acquisition. BII joined as a co-investor with up to USD 200 million (EUR 184.8m) of capital commitment in June 2022.

“Our decision to sell our African hydropower assets is in line with our strategy to focus the largest share of our investments in our core markets and on solar, wind and battery energy storage, while divesting assets in non-focus markets,” said Scatec’s CEO Terje Pilskog.

The transaction between Scatec and TotalEnergies is expected to close within the first half of 2025. Financial details were not provided.

(USD 1 = EUR 0.924)

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