Global Infrastructure Partners (GIP) is selling half of its interest in Clearway Energy Group to TotalEnergies in a $1.6bn deal, as part of a US renewables partnership between the two firms.

GIP is selling half of its stake in the renewable development company that owns a controlling stake with a 42% economic interest in NYSE-listed Clearway Energy.

In addition to receiving $1.60bn, GIP will also get a 50% interest in the TotalEnergies subsidiary that holds a 51% ownership in residential solar firm SunPower Corporation.

Clearway owns 5.7GW of renewable assets in the US and a 22GW development pipeline. The deal represents TotalEnergies’ largest investment in US renewables to date.

SunPower is the second-largest residential solar company in the US. The SunPower deal represents the first investment in distributed energy resources for GIP’s renewables platform, which includes ownership interests in 18GW of operating and construction assets and over 120GW of development pipeline.

Adebayo Ogunlesi, chairman and CEO of Global Infrastructure Partners, said GIP is confident that with TotalEnergies as a partner, Clearway will be able to “accelerate the deployment of cost-competitive renewable power” in the US.

“At the same time, GIP’s investment in SunPower is our initial commitment in the distributed generation space, which we believe will provide critical solutions to facilitate the nation’s clean energy future,” Ogunlesi added.

Patrick Pouyanné, chairman and CEO of TotalEnergies, said the deal allows TotalEnergies to “scale up in the US market, one of the most dynamic in the world”, benefiting from operating assets, a 22GW portfolio, with a wide geographic coverage with a presence in 34 states.

Pouyanné said the transaction “fits perfectly with our strategy to make solar and wind energy one of our main growth drivers along with liquefied natural gas that we have recently reinforced with the launch of Cameron extension”.

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