Repsol Buys Texas Based Renewable Co for $768MM

Repsol has announced that it has signed a deal to acquire Houston, Texas, based renewable development company ConnectGen for $768 million (EUR 715 million) from Quantum Capital Group’s global renewable energy development platform, 547 Energy.

In a release posted on its website, Repsol said the transaction is a new milestone in Repsol Renewables’ strategy to strengthen its position as a global player in the renewable energy business, “increasing its international footprint and contributing to its goal of 20,000 megawatts of installed renewable generation capacity by 2030”.

Repsol also described its purchase in the release as a significant step to accelerate its multi-energy transformation to net zero emissions by 2050.

ConnectGen is a renewable developer with a multi-technology approach and full in-house development capabilities, especially in U.S. onshore wind projects, according to the release, which notes that the company’s development pipeline includes 20,000 MW of onshore wind, solar, and energy storage projects at different levels of maturity across the most attractive U.S. energy regions.

“This pipeline entails the entry of Repsol in the U.S. onshore wind industry,” Repsol said in the release.

“ConnectGen will also allow Repsol to build on strong renewable capabilities in the U.S. and deep expertise internationally, adding a significant wind power growth platform that complements the solar and storage development capabilities acquired through the purchase of a 40 percent in Hecate Energy in 2021,” it added.

Current ConnectGen employees, including senior management, will join the Repsol Renewables’ team, the release highlighted. The deal is expected to be closed before the end of the year, subject to customary regulatory approvals, the release stated.

“This transaction is another step in our firm commitment to transforming our industry and becoming a zero net emissions company by 2050, while maintaining our profitable growth, diversification and multi-energy focus and ensuring shareholder returns,” Repsol CEO Josu Jon Imaz said in the release.

“The addition of ConnectGen accelerates our commitment to renewable generation in one of the markets with the greatest potential for future growth. In that sense, bringing on board its valuable team of experts is key to ensure our successful future growth with robust profitability in the market,” Imaz added.

Wil VanLoh, the Founder and CEO of Quantum, said, “Quantum is committed to driving forward the energy transition by building best-in-class platforms in the renewable energy and climate tech space”.

“It has been a privilege to work alongside Caton Fenz (ConnectGen CEO) and the entire ConnectGen team to build one of North America’s leading renewable energy development platforms,” VanLoh added.

“All of us at Quantum and 547 Energy are looking forward to watching Repsol convert these development projects into operating assets that will help power the American economy with clean renewable electricity over the next decade,” VanLoh went on to state.

USA Renewable Market

In its release, Repsol said the U.S. renewable market is one of the largest and “with greatest growth potential in the world”.

“The Global Wind Energy Council foresees that, in total, 60 gigawatts of onshore wind capacity is expected to be added in the next five years in North America, of which 92 percent will be built in the U.S. and the rest in Canada,” Repsol noted in the release.

“Additionally, the U.S. Inflation Reduction Act has provided new support and long-term visibility for the expansion of renewables in the United States. Based on this policy, it is expected that by 2027 U.S. annual wind and solar photovoltaic (PV) capacity additions double compared with 2021,” it added.

Repsol entered the U.S. following its purchase of 40 percent of Hecate Energy in 2021, the company pointed out in the release. In a separate release posted on the company’s website in May 2021 announcing its Hecate deal, Repsol said the purchase will make it a significant player in the U.S. solar and battery storage development market through its participation in Hecate Energy’s renewable project development business.

“Thanks to this transaction, the Spanish multi-energy company advances its objectives of geographic diversification of its renewables business, complementing its capabilities, improving its portfolio, and adding a solid platform with strong growth potential,” Repsol noted in its May 2021 release.

“The transaction represents a substantial leap forward for Repsol towards achieving the goals of low-emission generation capacity and the internationalization of this business set out in the company's 2021-2025 Strategic Plan,” it added.

In its latest release, Repsol highlighted that its ambition in the U.S. is to have an installed capacity of 2,000 MW by 2025 and more than 8,000 MW by 2030. The company’s 2021-2025 Strategic Plan envisages reaching 6,000 MW of installed renewable generation capacity by 2025 and 20,000 MW by 2030, Repsol’s latest release noted.

Global Renewable Power Generation

According to the Energy Institute’s (EI) first, and the overall 72nd, annual statistical review of world energy, which was released earlier this year, the U.S. had the second most renewable power generation in 2022.

This figure came in at 6.87 exajoules, according to the report, which highlighted that 2022 U.S. renewable power generation marked a 15 percent year on year growth and 16.8 percent of the total renewable power generation last year. Annual growth from 2012 to 2022 was 11.3 percent, the review outlined.

China had the most renewable power generation in 2022 at 13.2 exajoules, the report revealed. This figure marked an 18.3 percent year on year growth and 32.3 percent of the 2022 total renewable power generation. From 2012 to 2022, China’s total renewable power generation has grown 25.2 percent year on year, according to the review.

Germany came third in EI’s 2022 renewable power generation rankings with 2.33 exajoules. This figure represented a 9.5 percent year on year growth and 5.7 percent of total renewable power generation in 2022. Germany has seen a 6.2 percent year on year growth in renewable power generation from 2012 to 2022, the review pointed out.

Total world renewable power generation last year came in at 40.86 exajoules, the review revealed. This figure marked a 14 percent year on year rise, the review highlighted.

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