A framework agreement has been signed between Total and Petrobras to create this joint venture, which will aim to generate “a capacity of renewable electricity production of up to 500 MW” in the next five years, says Total in a statement.

Total Eren, formerly known as Eren Renewable Energy, has been 23% owned by Total since September 2017 and specializes in the development of renewable energy projects.

This announcement embodies a memorandum of understanding signed last July between Total, Total Eren and Petrobras to consider joint projects in solar and wind power in Brazil.

This collaboration in renewable energies is also part of a broader strategic alliance in Brazil, concluded between Total and the Brazilian public oil giant in March 2017. This alliance concerns first their core business, and oil and gas prospecting and production, as well as research and development.

As part of this strategic alliance, Total also announced that it would recover for $50 million the remaining 10% stake of Petrobras on the deep water field of Lapa, in the pre-salt basin of Santos.

Subject to approval of the competent Brazilian authorities, Total will now own 45% of this field, alongside Anglo-Dutch Shell (30%) and Repsol-Sinopec (25%), the statement said. Total and Petrobras “continue to explore new common opportunities in Brazil, particularly in the field of the gas chain”, it says.

The two groups also announced “first concrete results” in joint R&D projects, including the automatic identification of geological faults using artificial intelligence technologies, and low permeability reservoirs.