Spanish oil producer Repsol furthers clean energy plan by acquiring Asterion for $597 million

(Bloomberg) — Spanish oil producer Repsol SA furthered its clean energy expansion with the acquisition of local developer Asterion Energies for €560 million ($597 million).

Like many of its European peers, Repsol is adding renewables output as the energy transition accelerates. The Madrid-based company was the first large oil producer to announce a significant push into the space in 2019, with rivals such as Shell Plc and BP Plc since piling into the sector aggressively.

The Asterion deal gives Repsol a 7.7-gigawatt portfolio, located mostly in Spain but also in Italy and — in a first for the company — France, it said Dec. 16. The assets comprise 4.9 gigawatts of photovoltaic solar and 2.8 gigawatts of wind generation — some still under construction.

On top of the transaction price, Repsol agreed to contingent payments of as much as €20 million ($21.20 million). Banco Santander SA advised the company on the deal.

Repsol is targeting 20 gigawatts of installed renewable capacity by the end of the decade and has earmarked as much as €6.5 billion (6.89 billion) for low-carbon projects in its 2021-2025 strategic plan. Earlier this year, it agreed to sell a 25% stake in its clean energy unit to a joint venture between Credit Agricole SA and Energy Infrastructure Partners AG for about €905 million (959.16 million).