A consortium formed by insurance group Crédit Agricole Assurances and energy investor Energy Infrastructure Partners (EIP) has signed an agreement to acquire 25% of Spanish energy company Repsol’s renewables business, Repsol Renovables, for €905 million.

Repsol Renovables currently has a portfolio of more than 1.6 GW of installed renewable capacity across Spain, the U.S., Chile and Portugal. The transaction values the business at nearly €4.4 billion, including debt and minority holdings.

Josu Jon Imaz, CEO of Repsol, said:

“Having reputed partners such as Crédit Agricole Assurances and EIP joining us in Repsol Renovables represents a validation of our renewable strategy, supports our ambition to be a key player in the energy transition and fulfills our expectations in this important process.”

According to Repsol, the transaction will support the company’s pursuit of its 2021-2025 Strategic Plan, which was launched in November 2020 and involves investments of more than €18 billion. Last year, the company also announced a series of climate goals as an acceleration to those outlined in its 2021-2025 plan, including a target to increase its renewable generation capacity by 60% by 2030 to 20GW, and an interim 6GW 2025 goal.

Repsol stated in addition to reinforcing the company’s growth in line with the objectives of its Strategic plan to reach 6 GW of installed capacity in 2025, the incorporation of Crédit Agricole Assurances and EIP as partners also features entering new markets and incorporating complementary technologies like offshore wind.

Philippe Dumont, Crédit Agricole Assurances CEO, said:

“Fully in line with Crédit Agricole Group’s commitments in favor of the climate, Crédit Agricole Assurances is actively contributing to a low-carbon economy through its investments in the energy transition. This investment alongside Repsol and EIP is a new step, contributing to reach our objective of 14 GW of installed capacity by 2025.”

EIP Managing Partner, Roland Dörig, added:

“We are pleased to provide our investors with the opportunity to participate in a renewables platform of this size and caliber.”

Following the transaction, Repsol will continue to control the renewables business, while Crédit Agricole and EIP have pledged to support the platform’s further diversification, including plans to enter new markets and technologies like offshore wind.

EIP Co-Head of Investments, Peter Schümers, said:

“Working together with Repsol will support us in realizing our ambitious growth plans and further expanding EIP’s footprint in the Americas.”

The transaction is expected to close before the end of the year and will be effective starting January 2022.