TotalEnergies and SSE join forces and create Source, a new major player in EV charging in the UK & Ireland

Rhea-AI Summary

TotalEnergies (TTE) and SSE have signed a binding agreement to create a joint venture called Source, aiming to become a major player in EV charging infrastructure in the UK and Ireland. The venture plans to deploy up to 3000 high-power charge points grouped in 300 'EV hubs' within the next 5 years, targeting a 20% market share. These charging hubs will be located in prime urban areas and powered by renewable energy.

The initiative aligns with the UK Government's zero vehicle emissions mandate and Ireland's goal of placing almost 1 million electric vehicles on roads by 2030. This development contributes to TotalEnergies' integrated power strategy in the UK and SSE's role in decarbonizing the UK and Ireland's power system. The agreement is subject to regulatory approvals.

Positive

• Joint venture aims to deploy 3000 high-power charge points in 300 'EV hubs' within 5 years
• Targeting 20% market share in EV charging infrastructure in UK and Ireland
• Charging hubs to be powered by renewable energy
• Aligns with UK and Ireland's government initiatives for EV adoption
• Expands TotalEnergies' EV charging network in Europe

Negative

• None.

Financial Analyst

The establishment of Source, a joint venture between TotalEnergies and SSE, presents a significant opportunity in the electric vehicle (EV) charging infrastructure market of the UK and Ireland. For investors, the targeted deployment of up to 3000 high power charge points over the next five years signals a substantial capital investment and a strategic move to capture a 20% market share in a rapidly growing sector.

This joint venture's strategy is aligned with the growing demand for EV charging infrastructure, driven by governmental mandates for zero vehicle emissions and the ambitious goal of having nearly 1 million EVs on Irish roads by 2030. TotalEnergies' integrated power strategy and SSE's role in renewable energy generation indicate a strong foundation for sustainable growth.

From a financial perspective, potential investors should consider the long-term revenue streams from these charging stations, balanced against the substantial initial capital expenditure required for infrastructure development. The joint venture's success will depend on its ability to quickly and efficiently deploy these charging stations, while managing operational costs and maintaining high uptime for reliability.

Market Research Analyst

The collaboration between TotalEnergies and SSE to create Source represents a strategic entry into a burgeoning market. The EV sector is experiencing explosive growth, largely due to legislative changes and increasing consumer adoption. The UK and Ireland's plans for decarbonizing transport and the introduction of stringent emission regulations provide a ripe market for EV infrastructure development.

The joint venture's aim to establish 300 EV hubs in high-traffic urban areas indicates a clear strategy to maximize user convenience and charging reliability. This focus on prime locations will likely help in capturing a significant share of the market. However, it also presents challenges in terms of securing these locations and addressing local regulatory concerns.

Another important aspect is the consumer confidence that Source aims to build. By providing ultra-fast charging supported by renewable energy, the joint venture could alleviate one of the main barriers to EV adoption—range anxiety. This could subsequently accelerate EV adoption rates, positively impacting the market for related services and infrastructure.

Tech Expert

The technical aspect of Source's initiative is quite noteworthy. The deployment of high-power charge points (150 kW and more) is critical because it addresses one of the primary pain points of EV users: charging speed. High-power charging significantly reduces the downtime for vehicles, making EVs more practical for daily use and long-distance travel.

Furthermore, the integration of renewable energy sources for these charging hubs is a strong selling point. It not only aligns with global sustainability trends but also enhances the brand image of both TotalEnergies and SSE. The use of renewable energy could also help in mitigating energy costs in the long run, although the initial setup might be capital-intensive.

One potential challenge could be the technological compatibility with various EV models. As the EV market diversifies, ensuring that charging infrastructure supports all types of EVs will be crucial. Additionally, maintaining a high uptime and quick troubleshooting will be essential for user satisfaction and sustained growth.

LONDON & PARIS--(BUSINESS WIRE)-- Regulatory News:

TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE) and SSE have signed a binding agreement to create a joint venture to establish a new major player in EV charging infrastructure in the UK and Ireland, under the brand “Source”. The new business will deploy in both countries up to 3000 high power charge points, meeting demand from EV and fleet owners to provide fast and reliable charging.

Establishing a needs-based fast charging network across the UK & Ireland

Within the next 5 years, Source will deploy up to 3000 high power charge points (of 150 kW and more) grouped in 300 “EV hubs”, targeting 20% market share. Charging hubs will be in prime locations in and around urban areas and powered by renewable energy provided by SSE and TotalEnergies. Several hubs are already under construction with plans for dozens more, currently in development studies.

Leading the decarbonisation of transport in the UK & Ireland

In the UK, Source will provide the reliable ultra-fast charging infrastructure needed across the country to meet the demand from EV drivers and fleet operators. This demand was recently triggered by the enforcement into law of the UK Government’s zero vehicle emissions mandate for all new cars and vans, raising power supply infrastructure for EV and fleet owners as one of the biggest challenges facing the decarbonisation of transport.

Similarly in Ireland, Source’s plans will help accelerate action to meet the government target of placing almost 1 million electric vehicles on roads by 2030, while building consumer confidence in EV charging.

“TotalEnergies is proud to contribute to the development of electric mobility to decarbonize transportation in the UK and Ireland. This is a great opportunity to extend our network in Europe and stake out a key position as a reference high-power charging player. We want to offer our customers - passenger cars and fleet alike - a nationwide, ultra-fast and reliable charging service that allows them to travel efficiently with complete peace of mind. This development also contributes to our integrated power strategy in the UK, combining renewable and flexible power generation capacity, trading and marketing of low-carbon electricity available 24 hours a day,” says Mathieu Soulas, Senior Vice President New Mobilities at TotalEnergies.

“SSE is already playing a leading role in decarbonising the UK and Ireland’s power system including building the world’s largest offshore wind farm and transforming electricity networks. Now this agreement will help accelerate progress towards a decarbonised transport system too, ensuring the vehicles that keep the economy moving can do so in a more sustainable and efficient way,” says Neil Kirkby, Managing Director of Enterprise at SSE.

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

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TotalEnergies, A Major Player in Electric Mobility in Europe

With over 64,000 charge points in operation around the world today, and proven experience in the retail sector, TotalEnergies is already a recognized player in electric mobility. In the UK, the Company operates the Source London network comprising 2,600 charge points in the capital. This joint venture is aligned with TotalEnergies’ ambition to deploy and operate more than 1,000 high-power charging sites for electric vehicles in Europe by 2028.

TotalEnergies in the UK

TotalEnergies has been present in the UK for more than 60 years, employing more than 1,800 people across the energy value chain. As one of the country’s leading oil and gas operators, the Company operates around 30% of the UK Continental Shelf’s gas production, with average daily production of 142,000 barrels of oil equivalent per day (boe/d) in 2023. TotalEnergies’ portfolio in offshore wind in the country amounts to over 5 GW of gross renewable capacity, including Seagreen (1.1 GW, under operation), and large projects under development such as West of Orkney (2 GW) and Outer Dowsing (1.5 GW).The Company is one of the UK’s largest suppliers of gas and electricity to businesses and the public sector, with over 300,000 customers. TotalEnergies, also offers EV charging solutions, including 2,500 charge points in London and Birmingham. The Company is also active in the distribution of petroleum products: lubricants; aviation fuel; bitumen and specialty fluids. The Company is also present in the CCS business through its 10% interest in the Northern Endurance Partnership.

About TotalEnergies

TotalEnergies is a global integrated 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 provide as many people as possible with energy that is more reliable, more affordable and more sustainable. Active in about 120 countries, TotalEnergies places sustainability at the heart of its strategy, its projects and its operations.

SSE plc, the UK and Ireland’s clean energy champion

SSE’s purpose is to provide the energy needed today while building a better world of energy for tomorrow. We do this by developing, building, operating and investing in world-class electricity infrastructure that is vital to the clean energy transition. This includes onshore and offshore wind farms, hydro, electricity transmission and distribution networks, flexible generation, carbon capture and hydrogen storage, solar and batteries, as well as providing energy products and services for businesses and other customers.

A FTSE-100 company headquartered in the UK, SSE has positioned itself at the heart of the clean energy transition with one of the largest investment programmes in the FTSE-100. Under Net Zero Acceleration Programme Plus, we are investing £20.5bn over the next five years to 2027 and could invest more than £40bn over the decade to 2032. SSE has a growing presence in selected international markets in Europe, Asia and North America. We employ 14,000+ talented and skilled people and are a proud ‘real Living Wage’ and ‘Living Hours’ employer and accreditee of the ‘Fair Tax Mark’. SSE was also the first company in the world to develop a ‘Just Transition Strategy’ aimed at ensuring the benefits of the clean energy transition are shared by workers and communities.

SSE has significant experience in the development and rollout of EV charging infrastructure across the UK and Ireland powered by traceable, renewable energy. This includes the recent launch of Scotland’s most powerful EV charging hub in Dundee in July and the upcoming launch of their first hub in the Republic of Ireland, at Lough Sheever Retail Park in Mullingar.

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 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).

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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



SSE Contacts:

Media Relations: media@sse.com

Investor Relations: ir@sse.com

Source: TOTALENERGIES SE

FAQ

What is the name of the joint venture between TotalEnergies (TTE) and SSE for EV charging?

The joint venture between TotalEnergies and SSE is called 'Source'.

How many high-power charge points does Source plan to deploy in the UK and Ireland?

Source plans to deploy up to 3000 high-power charge points grouped in 300 'EV hubs' within the next 5 years.

What market share is Source targeting in the EV charging infrastructure sector?

Source is targeting a 20% market share in the EV charging infrastructure sector in the UK and Ireland.

What type of energy will power the Source charging hubs?

The Source charging hubs will be powered by renewable energy provided by SSE and TotalEnergies.

How does the Source joint venture align with government initiatives in the UK and Ireland?

The venture aligns with the UK Government's zero vehicle emissions mandate and Ireland's goal of placing almost 1 million electric vehicles on roads by 2030.