Renewables: TotalEnergies and European Energy Expand their Collaboration to Offshore Wind

Rhea-AI Summary

TotalEnergies signs agreement with European Energy to develop offshore wind projects in Denmark, Finland, and Sweden. The deal includes acquisition of equity stakes in two wind projects in Denmark, with electricity generation expected to start by 2030. TotalEnergies and European Energy also plan to develop new offshore wind projects in Sweden and Finland, leveraging their respective strengths. TotalEnergies aims to expand its renewable projects in competitive markets, while European Energy seeks to accelerate the renewable energy transition in Northern Europe.

Insights

Energy Market Analyst

The acquisition of significant equity stakes in two Danish offshore wind projects by TotalEnergies represents a strategic move to enhance the company's renewable energy portfolio. This decision underscores the growing trend among energy giants to diversify into sustainable energy sources, in line with global decarbonization efforts. The offshore wind sector in the Nordic region is particularly attractive due to favorable wind conditions and supportive regulatory frameworks.

The direct sale of electricity on the wholesale market or through CPPAs indicates a shift towards more flexible and market-driven approaches to energy sales. This could potentially lead to increased price competitiveness and better integration of renewable energy into the existing electricity markets. The expected timeline for construction permits and startup by 2030 offers a clear roadmap for project development and future energy generation capacity.

Financial Analyst

From a financial perspective, the involvement in large-scale offshore wind projects is likely to have a significant impact on TotalEnergies' long-term revenue streams and profitability. The investments in Denmark, as well as the joint venture in Sweden and Finland, could open new markets for TotalEnergies, potentially improving its risk diversification. However, the capital expenditure required for these projects and the timeline for returns should be carefully considered by investors.

Moreover, the partnership with European Energy, leveraging their regional expertise, may enhance project execution efficiency and stakeholder engagement, which are crucial factors for the success of infrastructure projects. This collaboration could also enhance TotalEnergies' competitive positioning in renewable energy tenders, potentially leading to an increased market share in the European offshore wind market.

Sustainability and Renewable Energy Expert

This agreement is a significant step towards achieving TotalEnergies' net-zero ambitions, highlighting the company's commitment to sustainability and the transition to renewable energy sources. The expansion of its offshore wind capacity is in line with the broader industry's shift towards cleaner energy production to address climate change concerns. Offshore wind farms have become a key component in the renewable energy mix due to their high energy yield and technological advancements.

Furthermore, the partnership could serve as a model for future collaborations between traditional energy companies and specialized renewable energy firms. It reflects an increasing recognition of the importance of joint ventures in overcoming technical and financial challenges associated with large-scale renewable projects. The focus on state-of-the-art facilities suggests a commitment to not only expanding capacity but also advancing the efficiency and reliability of renewable energy technologies.

PARIS & COPENHAGEN, Denmark--(BUSINESS WIRE)-- Regulatory News:

As part of its integrated development in electricity, TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE) has signed a new agreement with European Energy to develop offshore wind projects in three Nordic countries: Denmark, Finland and Sweden.

405 MW of offshore wind power under development in Denmark

• The agreement entails the acquisition by TotalEnergies of a 85% equity stake in the Jammerland Bugt offshore wind project (240 MW) and a 72.2% equity stake in the Lillebaelt South nearshore wind project (165 MW). Both projects are located in Denmark.

• Both sites are included in the nine open-door projects that were confirmed by the Danish Energy Agency in December 2023 and have obtained exclusivity and grid connection permits. The final construction permits are expected in mid-2024, and start up by 2030.

• The electricity generated by these sites will be sold directly on the electricity wholesale market or through Corporate Power Purchase Agreements (CPPAs), enabling them to reduce their carbon footprint.

Joint development for large scale offshore wind projects in Sweden, Finland, and Denmark

• The partners also intend to develop and operate new large scale offshore wind projects in Sweden and Finland through a joint-venture, and to bid for the upcoming offshore wind tenders in Denmark.

These deals aim to leverage both parties’ strengths: TotalEnergies will contribute its experience in large-scale projects and its ability to market the offtake in merchant markets. European Energy has a proven track record in developing greenfield projects and engaging successfully with stakeholders in these countries.

This agreement for offshore wind projects follows a previous agreement between TotalEnergies and European Energy in September 2023 to jointly develop, build and operate onshore renewable projects in multiple geographies.

“We are delighted to expand our collaboration with European Energy. These new offshore wind projects in Denmark are aligned with our strategy of developing renewable projects in merchant countries at competitive cost. This partnership will allow TotalEnergies to take advantage of European Energy's longstanding presence in northern Europe to expand its business there,” said Vincent Stoquart, Senior Vice President, Renewables at TotalEnergies.

“This partnership with TotalEnergies will accelerate the renewable energy transition in Northern Europe. Our combined expertise in developing greenfield projects and TotalEnergies' experience in large-scale operations will enable us to deliver state-of-the-art offshore wind facilities. We are excited to contribute our deep knowledge of the Nordic energy market to this venture, ensuring the successful realization of these ambitious projects. This collaboration not only strengthens our position in the renewable energy sector but also underscores our commitment to sustainable development and energy independence in Europe,” said Knud Erik Andersen, Group CEO at European Energy.

This agreement is subject to the applicable regulatory approvals being obtained from the relevant authorities.

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TotalEnergies and offshore wind
TotalEnergies’ portfolio in offshore wind has a total capacity of more than 16 GW, with most farms bottom-fixed. These projects are located in the United Kingdom (Seagreen, Outer Dowsing, West of Orkney, Erebus), South Korea (Bada), Taiwan (Yunlin, Haiding 2), France (Eolmed), the United States (Attentive Energy and Carolina Long Bay), and Germany (N-12.1 and 0-2.2).

TotalEnergies and electricity
As part of its ambition to get to net zero by 2050, TotalEnergies is building a world class cost-competitive portfolio combining renewables (solar, onshore and offshore wind) and flexible assets (CCGT, storage) to deliver clean firm power to its customers. At the end of 2023, TotalEnergies’ gross renewable electricity generation installed capacity was 22 GW. TotalEnergies will continue to expand this business to reach 35 GW in 2025 and more than 100 TWh of net electricity production by 2030.

About TotalEnergies
TotalEnergies is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to energy that is ever more affordable, more sustainable, more reliable and accessible to as many people as possible. Active in nearly 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.

@TotalEnergies l TotalEnergies l TotalEnergies l TotalEnergies

About European Energy
European Energy was founded in 2004 in Copenhagen. The company develops and constructs renewable energy projects across the world. European Energy owns more than 1.4 GW of renewable energy projects and has more than 60 GW of renewable energy projects in its pipeline in 28 countries. European Energy is developing a portfolio of offshore wind projects primarily in the Nordics.

Cautionary Note
The terms “TotalEnergies”, “TotalEnergies company” or “Company” in this document are used to designate TotalEnergies SE and the consolidated entities that are directly or indirectly controlled by TotalEnergies SE. Likewise, the words “we”, “us” and “our” may also be used to refer to these entities or to their employees. The entities in which TotalEnergies SE directly or indirectly owns a shareholding are separate legal entities. This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TotalEnergies SE nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise. Information concerning risk factors, that may affect TotalEnergies’ financial results or activities is provided in the most recent Universal Registration Document, the French-language version of which is filed by TotalEnergies SE with the French securities regulator Autorité des Marchés Financiers (AMF), and in the Form 20-F filed with the United States Securities and Exchange Commission (SEC).

View source version on businesswire.com: https://www.businesswire.com/news/home/20240122598117/en/

TotalEnergies Contacts

Media Relations: +33 (0)1 47 44 46 99 l presse@totalenergies.com l @TotalEnergiesPR

Investor Relations: +33 (0)1 47 44 46 46 l ir@totalenergies.com

European Energy Contacts

Media Relations: +45 3126 9376 | miol@europeanenergy.com

Source: TotalEnergies SE

FAQ

What is the new agreement signed by TotalEnergies?

TotalEnergies signed a new agreement with European Energy to develop offshore wind projects in Denmark, Finland, and Sweden.

What is the ticker symbol for TotalEnergies?

The ticker symbol for TotalEnergies is TTE.

What is the expected start-up date for the electricity generation from the wind projects in Denmark?

The electricity generation from the wind projects in Denmark is expected to start by 2030.

What is the total capacity of TotalEnergies' portfolio in offshore wind?

TotalEnergies' portfolio in offshore wind has a total capacity of more than 16 GW.

What is TotalEnergies' ambition regarding net zero by 2050?

TotalEnergies aims to reach 35 GW of gross renewable electricity generation installed capacity in 2025 and more than 100 TWh of net electricity production by 2030.