TotalEnergies to develop two offshore wind farms in Germany

TotalEnergies has been awarded by the Bundesnetzagentur (German Federal Network Agency) two marine concessions, N-12.1 and O-2.2, at the end of the auction held in Germany, Report informs via ESEuro.

Located in the North Sea, 170 kilometers from the coast, the N-12.1 concession covers an area of ​​about 200 square kilometers. Located in the Baltic Sea 40 kilometers from the coast, the O-2.2 concession covers an area of ​​about 100 square kilometers.

The concessions will be valid for 25 years, extendable to 35 years. With capacities of 2 GW and 1 GW respectively, these two wind farms will provide a volume of electricity equivalent to the consumption of more than 3 million homes.

Following these awards, TotalEnergies will pay the German Federal Government 582 million euros, which will be allocated to the conservation of the marine environment and the promotion of environmentally friendly fishing. An annual contribution will also be paid to the operators of the electric power transmission system in charge of connecting the projects for 20 years from the commissioning of the sites.

The production generated by these sites will be commercialized by TotalEnergies, either by selling it directly in the electricity market or by entering into Power Purchase Agreements (PPAs) with the final buyers, which will allow them to reduce their carbon footprint. These projects, which are cost competitive given the quality of the sites, are in line with the Company’s strategy to become an integrated player in the electricity markets, taking advantage of price volatility. They will contribute to the goal of the Integrated Energy Business Unit of achieving double-digit profitability.

These large projects are in line with the German government’s goal of deploying 30 GW of offshore wind energy in Germany by 2030. The next step for TotalEnergies will be to carry out the necessary studies to obtain environmental permits, as well as technical analyzes on these sites, leading to investment decisions in 2027 and commissioning by 2030.

“TotalEnergies is proud to draw on its experience in offshore and large-scale projects to build these gigantic wind farms, which will significantly contribute to the development of renewable electricity in Europe by 2030. Our entry into offshore wind in Germany, Europe’s largest market electricity, is a key step in the implementation of our strategy to become an integrated and profitable player in the electricity markets. Following the commissioning of a floating LNG regasification unit at the Lubmin terminal in January 2023, this is a further commitment by TotalEnergies to implement our multi-energy strategy in Germany and contribute to the country’s and Europe’s energy security.” said Patrick Pouyanné, president. and CEO of TotalEnergies.