TotalEnergies On Contract Winning Spree: 20-Year NJ Wind Contract Propel US Energy Vision

TotalEnergies SE TTE and its partner Corio Generation (Corio) disclosed winning a 20-year contract from the State of New Jersey to supply 1.34 GW of renewable electricity to the state. 

The Attentive Energy Two offshore wind project will deliver renewable power to more than 650,000 homes. Attentive Energy Two is a joint venture between TotalEnergies (70%) and Corio (30%). 

The project’s development is expected to provide up to $105 million in community investments across the state, and the partners aim to commission it in 2031.

TTE disclosed the profitability of the project is ensured by the guaranteed level of OREC revenue, with a first-year set price of $131 per MWh following the start of commercial operations, inflated yearly by 3%, and the benefit of a 30% IRA tax credit. 

The contract also includes a one-time inflation adjustment mechanism to compensate for changes in the construction costs environment until the final investment decision.

Vincent Stoquart, Senior Vice President, Renewables, said, “This is another success for us in the US electricity business, following the provisional award in October 2023 of a 25-year supply contract by the State of New York to our Attentive Energy One project.”

“Both Attentive Energy One and Two will support our operations in the attractive US power market, where we are developing a portfolio of more than 25 GW of flexible and renewable projects. They will also help us achieve our profitability target for this business segment of 12% ROACE by 2028, as well as our ambition of delivering more than 100 TWh of power generation by 2030.”

This week, TTE purchased German battery storage developer Kyon Energy, reinforcing its presence in the German electricity system.

Also, the company recently entered a new agreement with European Energy to develop offshore wind projects in three Nordic countries: Denmark, Finland, and Sweden.

Price Action: TTE shares closed higher by 1.53% at $64.24 on Wednesday.