TotalEnergies has signed an agreement with TexGen, a US based company to acquire for $635 million three gas-fired power plants with a total capacity of 1.5 GW in Texas.
The three plants, which are connected to ERCOT (Electric Reliability Council of Texas), the second largest power market in the United States, consist of the following:
The Wolf Hollow I plant with a 745 MW combined-cycle gas turbine (CCGT) plant on the outskirts of Dallas.
The Colorado Bend I plant with a 530 MW CCGT and a 74 MW open-cycle gas turbine (OCGT), south of Houston, provides additional flexibility to meet exceptionally high demand, especially in the summer.
The La Porte site with a 150 MW OCGT, southeast of Houston.
These flexible assets, located close to Dallas and Houston, will serve the fast-growing energy demand of these cities and will allow to offset the intermittency of renewable power production.
The 1.5 GW additional flexible production capacity acquired by TotalEnergies will complement its renewable capacity in Texas – currently 2 GW gross installed, 2 GW under construction and more than 3 GW under development – and will strengthen its trading capabilities in the gas and power markets.
This latest acquisition reinforces TotalEnergies’ commitment to delivering energy that is more available, affordable, and sustainable for the 26 million ERCOT customers across Texas.
Stephane Michel, president gas renewables and power at TotalEnergies says: ‘We are delighted with the agreement signed with TexGen to acquire 1.5 GW of CCGT in ERCOT…These plants will enable us to complement our renewable assets, intermittent by nature, provide our customers with firm power, and take advantage of the volatility of electricity prices. This acquisition will contribute positively to our profitability target of 12% ROACE by 2028 for our Integrated Power business segment.’