Total, the world's fourth largest oil and gas company, is expanding its reach into renewable energy and energy efficiency.

In a deal announced September 19, 2017, Total says it will acquire an indirect interest of 23 percent in renewable energy company EREN RE by subscribing to a capital increase €237.5 million ($284.8 million). The agreement gives Total the possibility to take over control of EREN RE after five years.

In a second deal, Total says it will buy GreenFlex, a French company specializing in energy efficiency. Terms were not disclosed. Founded in 2009, GreenFlex operates in Europe and has more than 600 clients. The company is forecasting revenues of more than €350 million ($420 million) in 2017 and employs 230 people.

Founded in 2012, EREN RE has developed an asset base of wind, solar, and hydro resources with an installed gross capacity of 650 megawatts in operation or under construction. It aims to reach an installed generating capacity of more than 3 gigawatts within five years. The capital increase subscribed by Total will enable EREN RE to cover its financing needs to accelerate development.

“Total integrates climate challenge into its strategy and is pursuing steady growth in low-carbon businesses, in particular in renewable energy,” said Patrick Pouyanné, Chairman and CEO of Total.

Total says its investment in EREN will help it rebalance its portfolio in renewables between the upstream manufacturing with SunPower and the downstream power production with EREN RE.

The deal is subject to the approval of regulatory authorities.

The GreenFlex acquisition will accelerate the expansion of Total’s energy efficiency offering, augmenting its existing affiliates BHC Energy in France and Tenag in Germany.

The sale is expected to close in the fourth quarter of 2017 and requires approval by regulatory authorities.