TotalEnergies CEO says Firm Will Cease Contracts in Germany

TotalEnergies could be preparing to exit multiple offshore wind contracts in Germany. The French energy company committed to paying around US$7bn for several leases won in a 2023 state auction.

The development was reported by German newspaper SZ on 19 May. It follows a separate deal in March where the Trump administration paid TotalEnergies US$1bn to abandon offshore wind projects off the US East Coast.

Strategic retreat from renewables

TotalEnergies maintains it is "actively working on the realisation of our projects" and seeking "practical solutions". The potential withdrawal appears to contradict the company's stated 2030 carbon reduction targets and 2050 net-zero goal.

The contracts in question represent a substantial financial commitment. The 2023 German auction raised US$14.6bn in total bids.

Around 90% of those funds were designated for offshore power infrastructure expansion. The money would finance new power lines and converter stations linking North Sea and Baltic Sea wind farms to Germany's mainland grid.

European grid operator TenneT has flagged concerns about project delays. "If this doesn't happen, we fear that while our grid connections will be built on time, offshore wind farms that have already been auctioned could be delayed by several years," TenneT warns.

US deal redirects capital

In March, TotalEnergies relinquished two US offshore wind leases at Carolina Long Bay and the New York Bight. The sites represented a combined planned capacity of 4GW.

Washington repaid almost US$1bn in lease fees from taxpayer funds. TotalEnergies CEO Patrick Pouyanné explained the commercial rationale.

"Considering that the development of offshore wind projects is not in the country's interest, we have decided to renounce offshore wind development in the US, in exchange for the reimbursement of the lease fees," he says.

TotalEnergies committed to redirecting the recovered capital into US gas and power infrastructure. The funds will help finance the Rio Grande LNG plant in Texas.

Sam Salustro, SVP of Policy and Market Affairs at the Oceantic Network, criticised the arrangement. "Paying to remove affordable, homegrown energy out of the equation leaves American consumers struggling to pay their electricity bills," he says.

Germany's capacity targets at risk

Germany aims to reach 30GW of offshore wind capacity by 2030. Only around 10GW had been installed by the end of 2025.

The four projects from the 2023 auction round account for 7GW of that shortfall. They were scheduled to come online between 2030 and 2032.

A 2025 auction round in Germany attracted zero bids. This could indicate broader market uncertainty around renewable energy development contracts.

BWO, Germany's offshore wind industry association, acknowledged the situation raises "central questions of industrial continuity, security of supply and the energy policy credibility of Germany as an offshore location".

Legal position remains unclear

Germany's economy ministry has stated that bidders have no legal right to withdraw under current law. It expects the projects to proceed.

However, a legal grey area exists around the final investment decision point. This decision is only triggered once an official grid connection date is set.

No date has been announced. This leaves room for extended delays or renegotiation.

According to the company's own figures, TotalEnergies exported 19 million tonnes of US LNG in 2025 alone. A pivot from wind development back towards gas operations would align with existing revenue streams and marks a substantial reallocation of capital from renewable infrastructure to fossil fuel assets across major Western markets.