TotalEnergies said July 25 it will buy out Total Eren, an independent power producer with an enterprise value of about $4.2 billion (€3.8 billion).

The move to boost its stake from about 30% comes as the energy company exercises its right to fully acquire the renewables producer following a five-year period as stipulated in a strategic agreement reached in 2017.

“With the acquisition and integration of Total Eren, we are now opening a new chapter of our development as the expertise of its team and its complementary geographical footprint will strengthen our renewable activities and our ability to build a profitable integrated power player,” TotalEnergies CEO Patrick Pouyanné said in a news release.

TotalEnergies’ nearly $1.7 billion investment in the renewables company will add about 3.5 gigawatts (GW) of hydroelectric, solar, storage and wind projects of renewable capacity—in operation, construction or late-stage development—to its portfolio.

Another 10 GW are in the pipeline, according to the release.

The acquisition is expected to push TotalEnergies closer to its goal of increasing its renewable electricity production capacity to 35 GW by 2025 and to 100 GW by 2030.

By the end of 2022, TotalEnergies had invested $4 billion in low-carbon energies, lifting its gross installed electricity capacity to 21 GW. This included 17 GW of renewables.

Total Eren’s assets span the African, Latin American and Asia-Pacific regions. Just last week, the company said its hydrogen subsidiary TEH2 partnered with Finland-based Aliceco Energy to develop the Vanadis low-carbon electrofuels project in Kokkola, Finland.

Plans are to integrate Total Eren’s teams into TotalEnergies’ renewables business unit.

The integration should result in an increase in TotalEnergies’ integrated power net operating income of about $177 million (€160 million) and an increase of about $442 million (€400 million) to the company’s cash flow from operations in 2024, the company said.

TotalEnergies is scheduled to release its second-quarter and first-half 2023 results July 27.