TotalEnergies awarded 1GW offshore wind concession in German North Sea

PARIS - TotalEnergies (NYSE:TTE), the $141 billion energy giant with a "GOOD" financial health rating according to InvestingPro, has been awarded the N-9.4 offshore concession in the German North Sea through its shareholding in North Sea OFW One GmbH, according to a company press release. The company, currently trading below its Fair Value, has maintained dividend payments for 49 consecutive years.

The concession, granted by the Federal Network Agency, covers approximately 141 square kilometers located about 150 kilometers northwest of Heligoland. It will enable the development of 1 gigawatt of offshore wind capacity over a 25-year period, which can be extended to 35 years. This expansion aligns with TotalEnergies’ robust financial position, supported by $37.15 billion in EBITDA for the last twelve months.

The N-9.4 site is positioned near the N-9.1 and N-9.2 concessions jointly owned by RWE and TotalEnergies. The company plans to develop these sites as a cluster to optimize construction and operating costs.

As part of the award terms, Offshore Wind One GmbH will pay €18 million to the German federal government in 2026 for marine conservation and environmentally friendly fishing practices. An additional annual contribution of €8.1 million will be paid to the electricity transmission system operator for 20 years after commissioning.

TotalEnergies also announced it has initiated a strategic review of its German concessions obtained since 2023 due to delays in connection timelines announced by German transmission system operators.

The company currently has 28 GW of installed gross renewable electricity generation capacity and aims to reach 35 GW by the end of 2025. Its offshore wind portfolio has a total capacity of 23 GW, with projects across multiple countries including the United Kingdom, South Korea, Taiwan, France, the United States, the Netherlands, and Germany. For detailed analysis of TotalEnergies’ growth strategy and financial metrics, including 8 additional exclusive ProTips, visit InvestingPro to access the comprehensive Pro Research Report.

In other recent news, TotalEnergies has announced several strategic moves that could impact its future operations and growth. The company received an upgrade from Bernstein SocGen, which raised its stock rating to "outperform," highlighting TotalEnergies’ high return on average capital employed and low production costs. The firm expects strong production growth for TotalEnergies in the coming years. In Southeast Asia, TotalEnergies has expanded its presence by acquiring interests in offshore blocks in Malaysia and Indonesia from PETRONAS, which includes significant gas discoveries.

Additionally, TotalEnergies has acquired a 25% stake in Chevron’s U.S. offshore blocks, further expanding its exploration portfolio in U.S. waters. In Brazil, the company increased its stake in the Lapa offshore field while reducing its stake in the Gato Do Mato field, reflecting a strategic realignment of its portfolio. Moreover, TotalEnergies has entered into a 20-year LNG purchase agreement with Ksi Lisims LNG and acquired a 5% stake in Western LNG, positioning itself for competitive LNG supply in Canada.

These recent developments indicate TotalEnergies’ strategic focus on expanding its global footprint and optimizing its portfolio to adapt to changing market conditions.

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