A consortium led by TotalEnergies has secured a tender to develop and construct a 1.5-gigawatt wind farm off the coast of Normandy, marking France’s largest offshore wind project to date. This development brings France closer to its goal of achieving 45 gigawatts of offshore wind capacity by 2050, significantly increasing its current 1.5 GW capacity.
The project, valued at 4.5 billion euros ($5.3 billion) excluding grid connection costs, is expected to produce six terawatt-hours of electricity annually, equivalent to powering one million households. TotalEnergies anticipates making a final investment decision in early 2029, with power production slated to begin in 2033. The state-set tariff of 66 euros per megawatt-hour reflects a 50% rise in construction costs.
This offshore wind award is TotalEnergies’ first in France, where previous tenders have primarily been awarded to state-owned EDF or partially state-owned Engie. TotalEnergies’ gross renewable capacity stands at 25 GW, with only 2 GW currently in France, although this is expected to increase to 4 GW by 2030.
In a separate development, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has canceled the sale of TotalEnergies’ 10% stake in Shell Petroleum Development Company of Nigeria Limited (SPDC) to Chappal Energies. The sale, initially agreed upon in July 2024, was valued at $860 million. However, regulatory approval was withdrawn due to the parties’ failure to meet financial commitments, including TotalEnergies’ requirement to pay regulatory fees and cover funds for environmental rehabilitation and future liabilities.
This decision follows a trend of oil majors divesting their onshore Nigerian oil assets in recent years. Companies such as Shell, Exxon Mobil, Eni, and Equinor have sold their Nigerian assets to focus on more profitable operations elsewhere. Chappal Energies, which specializes in producing oil and gas from mature and distressed upstream assets in the Niger Delta, had previously acquired Nigerian assets from Equinor for $1.2 billion.
The cancellation of the sale highlights the complexities and challenges involved in energy transactions in Nigeria. As the energy landscape continues to evolve, companies must navigate regulatory requirements, financial obligations, and environmental concerns to succeed in the industry.
