TotalEnergies has announced a new joint venture (JV) deal worth up to $580m with Brazilian renewable energy developer Casa dos Ventos (CDV) to develop and operate the latter’s renewable energy portfolio in Brazil.

The renewable energy portfolio features 700MW of onshore wind capacity that is operational and 1GW of onshore wind in the construction stage. It also includes 2.8GW of onshore wind and 1.6GW of solar power projects under well-advanced development, with completion dates within the next five years.

Apart from Casa Dos Ventos’ renewable energy portfolio, the JV will have the right to purchase the projects being developed by the Brazilian energy company as they reach the execution stage. This will give the JV access to at least another 6GW of renewable energy capacity.

TotalEnergies chairman and CEO Patrick Pouyanné said: “With this transaction, TotalEnergies acquires not less than a leading position in the Brazilian renewable energy market, one of the most dynamic merchant markets in the world.

“This market fits our strategy of taking advantage of the growth of the deregulated power markets, which is crucial to the energy transition.

“With a total of 12 GW in operation, construction and development, both wind and solar, this transaction is an additional step in TotalEnergies ambition to reach 100 GW of renewable production by 2030 and in its transformation into a sustainable and profitable multi-energy company.”

A 34% stake in the JV will be held by TotalEnergies while the remaining 66% will be owned by Casa Dos Ventos.

TotalEnergies will pay the Brazil energy company $550m in cash and up to $30m in earn-out to close the acquisition of the stake.

In addition, the French energy company will have the option to acquire an additional 15% stake in the JV after five years.

Casa dos Ventos founder and president Mario Araripe said: “The partnership between Casa dos Ventos and TotalEnergies was structured to maximise the complementarities and synergies between the companies.

“In addition to its financial strength, TotalEnergies’ global footprint will contribute to the expansion of our client portfolio and enhance our knowledge in new fields of the energy transition. We are confident that this partnership positions us in a strategic role to lead the sustainable energy agenda in Brazil.”