The value of the deal is €897.7 million ($1.28 billion).
Shares in SunPower surged on world markets after it revealed a “friendly tender offer” from an oil company that had been expected to put major new investment into nuclear rather than solar or wind – until, that is, the Japanese earthquake raised new questions about the safety of atomic power.
“The world future energy balance will be the result of a long-term transition in which renewable energies will take their place alongside conventional resources,” said Philippe Boisseau, President, Total Gas and Power Division.
“Over the past years, Total has built up sizeable renewable energy activities. Today, Total is executing on its strategy to become a major integrated player in solar energy,” he continued. “We evaluated multiple solar investments for more than two years and concluded that SunPower is the right partner based on its people, world-leading technology and cost roadmap, vertical integration strategy and downstream footprint.”
“SunPower is preparing for rapid expansion through the next decade,” added Boisseau. “We look forward to supporting SunPower as a strategic partner with whom we expect to find many synergies with our solar activities as well as with Total Group overall, while maintaining their entrepreneurial culture of rapid innovation.”
Tom Werner, SunPower’s CEO, said Total’s commitment and global presence will help accelerate the company’s growth and solidify its position in the increasingly competitive solar sector.
“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,” Werner said. “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.
“Solar is becoming a material addition to the new generation portfolio around the world, with more than 40,000 MW of solar photovoltaic power installed globally,” Werner continued. “Total and SunPower will collaborate to ensure that solar becomes a platform for an efficient, competitive and sustainable energy future. Already, SunPower’s high-efficiency, high-reliability solar photovoltaic power plant costs are competitive with other new resources.”
While the SunPower announcement is significant, Total is not entirely new to the sector, having held stakes in two other solar firms – Photovoltech and Tenesol – since the early 1980s.
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