ENGIE has achieved a major step in the implementation of its transformation plan to redesign and simplify its portfolio, by acquiring OpTerra in energy services and selling 13 GW of power generation assets, of which 10 GW exposed to commodity prices in the United States and two coal-fired power plants (3 GW2) located in India and Indonesia.
The impact of these disposals is a net debt reduction of €5.5 billion (US$5.98 billion).
Headquartered in Oakland, California, OpTerra employs 300 people and generated US$275 million revenues in 2015. With 25 regional offices across the United States, OpTerra provides a comprehensive set of energy and sustainability management services to thousands of customers. To date, OpTerra has helped customers across multiple industries achieve over $2 billion in energy savings. OpTerra enhances energy performance in schools, colleges and universities, commercial and industrial firms, health care, IT, and municipal markets by integrating technology solutions that range from energy efficiency and renewables to water conservation and micro grids.
ENGIE has signed 2 definitive agreements for the sale of its interests in 10 GW of merchant power generation capacity located in the United States:
ENGIE has also reached an agreement for the sales of its interests in Paiton and Meenakshi. This will result in a reduction of €1.4 bn of the consolidated net debt of ENGIE.
Gérard Mestrallet, Chairman and Chief Executive Officer of ENGIE, and Isabelle Kocher, Deputy CEO and Chief Operating Officer, stated:
“These transactions perfectly illustrate the implementation of our transformation plan, to reduce ENGIE’s carbon footprint and its exposure to commodity prices and to focus on two of our priorities: developing a low CO2 energy mix and innovative and integrated solutions for our clients. Through the acquisition of OpTerra, ENGIE thus becomes the third US leader in energy services. With the disposals in the USA, India and Indonesia, we already realize over one third of our 3-year €15 billion portfolio rotation program, while reducing by 20% our coal-fired generation installed capacity.”