Total moves into offshore wind with joint bid for Dunkirk project
French energy major expands investment in renewables as it plans to invest $1.5-$2bn annually in low-carbon electricity by 2022
Paris — French energy major Total is partnering with Denmark’s Orsted and renewable energy producer Elicio to submit a joint bid for the 600MW capacity Dunkirk offshore wind project in France, the company said on Monday.
The bid is the oil and gas major’s first serious foray into offshore wind in decades as it expands its presence in the renewable energy value chain.
Until recently, Total’s major investments in renewables have been chiefly in the solar segment, with its $1.3bn acquisition of SunPower and purchase of a 23% stake in solar and wind energy producer Total Eren.
Meanwhile, European peers such as Equinor and Shell have been increasing investments in offshore wind developments.
Total’s executives have said the company is keenly watching the wind segment and would invest if a suitable business case emerges.
“Total’s participation in this offshore wind bid is in line with our strategy to develop our low-carbon electricity business in Europe,” Philippe Sauquet, president of gas, renewables and power at Total, said in a statement.
The company plans to invest $1.5bn-$2bn annually in low-carbon electricity with a target of about 10 GW of installed capacity by 2022.
Orsted manages more than a quarter of the world’s installed wind capacity, while Elicio is particularly active in wind power in France and Belgium.
A number of international firms are vying for the Dunkirk tender.
“We think that offshore wind offers the materiality and returns that the majors are looking for and have expected Total to follow its major peers in the offshore wind sector,” said Valentina Kretzschmar, Wood Mackenzie’s director of corporate analysis.
Total’s partnership with experienced offshore wind players such as Orsted and Elicio will help it rise along the learning curve with the new technology, while its partners will benefit from its financial strength and project execution expertise, Kretzschmar said.