French energy conglomerate TotalEnergies and Brazil’s renewable energy developer Casa dos Ventos (CDV) announced the creation of a joint venture to develop, build, and operate the renewable portfolio of the Brazilian company.

TotalEnergies will hold 34% and CDV 66% shares in the JV. TotalEnergies said it would pay $550 million and up to $30 million in earn-out to complete the acquisition. The French company will have the option to acquire an additional 15% equity share in the JV after five years.

The portfolio comprises 700 MW of operational onshore wind capacity, 1 GW of onshore wind under construction, 2.8 GW of onshore wind, and 1.6 GW of solar projects, which will begin commercial operation within five years.

The JV is poised to jointly foster its growth by accessing an additional portfolio of at least 6 GW that Casa dos Ventos will continue to expand.

Chairman and CEO of TotalEnergies Patrick Pouyanne observed, “After Adani Green in India and Clearway in the United States, I am delighted with this new major partnership in Brazil with Casa dos Ventos, the leader in onshore wind energy. With a total of 12 GW in operation, construction, and development, both wind and solar, this transaction is an additional step in TotalEnergies’ ambition to reach 100 GW of renewable production by 2030 and in its transformation into a sustainable and profitable multi-energy company.”

CDV has developed 25% of the onshore wind assets in Brazil. It will help the JV with its deep knowledge of the Brazilian market and a high-quality portfolio while shifting from a developer to a producer business model.

In June this year, TotalEnergies announced an agreement with Adani Enterprises to acquire a 25% interest in Adani New Industries Limited to produce and commercialize green hydrogen in India.

Founder and President of Casa dos Ventos Mario Araripe said, “In addition to its financial strength, TotalEnergies’ global footprint will contribute to the expansion of our client portfolio and enhance our knowledge in new fields of the energy transition. We are confident that this partnership positions us in a strategic role to lead the sustainable energy agenda in Brazil.”

Earlier this year, TotalEnergies entered a 50-50 partnership with Japanese petroleum company ENEOS to develop 2 GW of decentralized onsite solar capacity for commercial and industrial consumers in Asia until 2027.