TotalEnergies SE (TTE) and its partner Corio Generation have announced that they have secured a 20-year contract to supply renewable electricity to the State of New Jersey. The contract, worth 1.34 GW, will see the Attentive Energy Two offshore wind project deliver renewable power to over 650,000 homes.
Attentive Energy Two is a joint venture between TotalEnergies (70%) and Corio (30%). The project is expected to provide up to $105 million in community investments across the state and is set to be commissioned in 2031.
The profitability of the project is ensured by the guaranteed level of Offshore Renewable Energy Certificate (OREC) revenue, with a first-year set price of $131 per MWh. This price will be inflated yearly by 3%, and the project will also benefit from a 30% Investment Tax Credit (ITC).
The contract also includes a one-time inflation adjustment mechanism to compensate for changes in construction costs until the final investment decision.
Vincent Stoquart, Senior Vice President of Renewables at TotalEnergies, expressed his satisfaction with the contract, stating, “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.”
Stoquart also highlighted the strategic importance of these projects, emphasizing that they will support TotalEnergies’ operations in the US power market, where the company is developing a portfolio of more than 25 GW of flexible and renewable projects. The company aims to achieve a profitability target of 12% ROACE (Return on Average Capital Employed) by 2028 and deliver more than 100 TWh of power generation by 2030.
This announcement comes shortly after TotalEnergies’ acquisition of German battery storage developer Kyon Energy, which further strengthens the company’s presence in the German electricity system. Additionally, the company has entered into a new agreement with European Energy to develop offshore wind projects in three Nordic countries: Denmark, Finland, and Sweden.
TotalEnergies’ shares closed higher by 1.53% at $64.24 on Wednesday, reflecting the positive market sentiment towards the company’s recent achievements and future prospects. With its ongoing commitment to renewable energy development and strategic partnerships, TotalEnergies is well-positioned to contribute to the transition towards a more sustainable energy future.
