The hydrocarbon sector has more of a hand in the renewable energy sector than what meets the eye, and one energy giant is setting out to diversify its assets by grabbing renewable energy stakes.
Alternative Energy Africa announced on April 17 that French oil company Total SA had signed a memorandum of intent with EDF Energies Nouvelles’ subsidiary EDF Energies Nouvelles Réparties (EDF ENR) for a stake in its PV company Tenesol. In the oil giant’s latest solar excursion, Total has agreed to acquire 60% of SunPower Corp. – the second largest solar panel manufacturer in the US – for $1.38 billion.
Total will provide the company $1 billion of credit support over the next five years, with some analysts predicting this move will be a catalyst for future transactions between the hydrocarbon sector and the renewable energy industry. “The deal for SunPower may lead to more solar industry acquisitions as US and European suppliers seek help competing against rival suppliers in Asia,” Sivest Group Inc. Portfolio Manager Kevin Landis said to ESI Africa.
“The takeover may trigger similar acquisitions by oil companies that consider renewable-energy manufacturers a way to improve their clean-energy credentials, and may profit when surging crude prices reduce demand for fossil fuels, John Hardy,” an analyst at Gleacher & Company in New York, said in a phone interview to ESI Africa.
While Landis believes that the acquisition will help SunPower compete with Chinese manufacturers, its CEO Tom Werner said: “Solar is becoming a material addition to the new generation portfolio around the world, with more than 40,000 MW of solar PV power installed globally.” He added: “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 PV power plant costs are competitive with other new resources.”
Alternative Energy Africa is trying to reduce its own carbon footprint in 2011. Ask about our electronic subscriptions and online marketing campaigns specially tailored for individual companies.