Dubai-headquartered, BlackRock-backed decarbonisation platform Positive Zero is set to take over TotalEnergies’ distributed solar assets in the GCC, according to three sources familiar with the transaction.

Positive Zero, which received a USD 400m investment from BlackRock’s infrastructure funds in December 2023, recently signed a bilateral agreement in Paris with TotalEnergies to acquire the assets, said the sources.

They did not disclose the value of the assets being sold. The French energy firm’s website indicates a C&I portfolio comprising around 25 projects, mainly in Dubai and Oman, with a total capacity of around 66 MW.

The deal executes TotalEnergies’ plan to exit the region’s C&I business and focus on utility-scale renewable energy projects, two of the sources said.

The French energy firm’s renewables business has won several publicly tendered solar IPPs in Saudi Arabia in recent years and is still bidding for new contracts, they said.

In partnership with Saudi utility developer and investor Aljomaih Electricity & Water, TotalEnergies won the contracts to develop the 300 MW Rabigh 2 solar farm in Saudi Arabia in 2024 and the 400 MW Al Sufun solar farm last year.

It also developed, along with Abengoa, the 100 MW Shams CSP in Abu Dhabi, which was the world’s largest at the time of its commissioning in 2013.

One of the sources said the Saudi IPPs and the Shams CSP project are not part of the sale.

Positive Zero was created by combining three decarbonisation-focused companies, including Taka Solutions and HYPR Energy, in addition to distributed solar developer and investor Siraj Power.

Positive Zero said in December 2023 that Siraj Power maintained a portfolio of over 140 MW of distributed solar energy in operation, although its website now indicates a current capacity of 250 MW.

Siraj Power is one of the leading C&I developers and investors in the UAE, along with Yellow Door Energy, which is majority-owned by UK infrastructure fund Actis, the sources said.

Taka Solutions focuses on upgrades of heating, ventilation and air conditioning (HVAC) and building management systems, as well as cooling services, while HYPR Energy provides portable, solar-charged lithium-ion batteries for heavy machineries, according to Positive Zero’s website.

BlackRock declined to comment, while TotalEnergies and Positive Zero did not respond to requests for comment.