In a move aimed at diversifying its energy offering, French oil and gas giant Total announced this week that it will acquire two green energy firms.

Total will take on a 23 per cent stake in French renewables outfit Eren RE, which operates a 650 MW portfolio of solar, wind and hydropower plants globally and aims to grow its installed capacity to 3 GW within five years.

Under the terms of the €237.5m ($284m) deal, Total will have the option to fully control Eren RE after five years.

Patrick Pouyanné, Total’s chair and CEO, said his company “integrates climate challenge into its strategy and is pursuing steady growth in low-carbon businesses, in particular in renewable energy.

“By partnering with Eren RE, we are leveraging a team that has a proven track record in renewable power production, and we are investing in an additional asset to accelerate our profitable growth in this segment, in line with our ambition to become the responsible energy major.”

Total is also set to acquire French energy efficiency company GreenFlex, which uses data intelligence and equipment management and financing to help its 600+ European clients manage their energy consumption. GreenFlex is forecasting revenues of more than €350m in 2017, Total said.   

The deal is expected to close in Q4 of this year.  

Total said it “intends to offer its customers integrated solutions, from optimization of energy needs and sources and finding financing solutions to energy management and emissions measurement and reduction”.