TotalEnergies has signed an agreement with Czech energy group Energetický a průmyslový holding (EPH) to acquire a 50% stake in its flexible power generation platform, as reported in TotalEnergies’ press release. The partnership, valued at €10.6 billion, will create a joint venture (JV) to expand flexible power assets, including natural gas-fired plants, biomass facilities, and battery storage across Western Europe.

The new 50/50 JV will operate the existing assets and drive future growth across the UK, Ireland, Italy, the Netherlands, and France. The platform is valued at €10.6 billion, which equates to 7.6 times its expected 2026 Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).

For its stake, EPH receives €5.1 billion in newly issued TotalEnergies shares. The issuance of 95.4 million shares represents about 4.1% of TotalEnergies’ capital, positioning EPH as one of the largest shareholders upon the deal’s closure.

The JV will serve as the primary vehicle for both companies to expand flexible power generation across the targeted European markets.

TotalEnergies expects the assets to contribute about 15 Terawatt-hours (TWH) of annual electricity production, which is crucial for capturing value equivalent to roughly 2 million tons per year of liquified natural gas (LNG) by integrating its global supply chain into the power market.

Furthermore, this acquisition is crucial for TotalEnergies’ broader strategy to integrate its global LNG supply with the European power market.

TotalEnergies is one of the world’s top three LNG players, with a portfolio exceeding 40 million tons per annum (Mtpa). The company already operates integrated LNG chains, spanning from upstream natural gas production to liquefaction, shipping, and regasification, and is now reinforcing the LNG-to-power link within Europe.