EPH and TotalEnergies to set up joint venture to generate electricity in Europe

Energetický a průmyslový holding (EPH), owned by billionaire Daniel Křetínský, and TotalEnergies will set up a joint venture focused on flexible power generation in Italy, the Netherlands, the United Kingdom, Ireland and potentially France. It will be valued at 10.6 billion euros (approximately 256 billion crowns). EPH spokesman Daniel Častvaj told the Czech News Agency (ČTK) today.

Under the newly established venture, EPH will give TotalEnergies a 50% stake. "In return, EPH will acquire a 4.1% stake in TotalEnergies SE," Častvaj noted. EPH will remain a long-term strategic shareholder in TotalEnergies. EPH will contribute its existing flexible generation assets and development projects in the target markets to the joint venture, with the exception of coal-fired power plants.

The new venture's main business activities will include gas-fired power generation and battery energy storage systems. Its total installed capacity will reach 11 gigawatts (GW), comprising flexible gas and biomass assets and battery storage facilities. A further 3 GW of projects are under construction.

In France, the plan still needs to be discussed with employee representatives. If the deal goes ahead there, EPH may contribute only C.S.E. Coulomb, a French company specialising in battery energy storage.

According to Křetínský, EPH was keen to become a long-term shareholder in TotalEnergies and establish a joint venture. "TotalEnergies is one of Europe's largest companies across all sectors and also has a strong global presence. Our stake in TotalEnergies advances our strategic ambition to diversify and reduce our geographical exposure, which is currently concentrated in the EU and UK," he said.

EPH and TotalEnergies are already working together. Since last December, they have jointly owned British energy company West Burton Energy, which owns a gas-fired power plant and battery storage facilities. EPH acquired a 50% stake in the company from TotalEnergies.

TotalEnergies focuses primarily on oil processing and fuel sales, and also operates in the gas sector and trades other energy commodities. In recent years, it has also been active in renewable energy. It operates in around 120 countries and employs more than 100,000 people worldwide.

"This acquisition represents another major milestone in TotalEnergies' strategy to build an integrated power player in Europe," TotalEnergies Chief Executive Patrick Pouyanné said of the new partnership.

"As Europe's largest gas supplier, this transaction allows us to fully leverage gas-to-power integration and create added value for our LNG chain independently of oil cycles," he added.

The EPH Group comprises more than 70 companies across Europe. Its subsidiaries include energy companies EP Infrastructure and EP Power Europe. The group's majority owner is one of the wealthiest Czechs, Daniel Křetínský. The parent group is EPCG, which, in addition to its energy division, also includes media group Czech Media Invest (CMI) and EC Investments. Křetínský owns 89.3% of EPCG's shares, with the remaining 10.7% held by a group of EPH managers.