The Shareholders' Newsletter #69 - Fall 2022

Following its selection as the first partner for the North Field East (NFE) liquefied natural gas (LNG) project, TotalEnergies has again been selected as the first international partner in the 16 Mtpa North Field South (NFS) LNG project. Pursuant to the agreement, TotalEnergies will obtain a 9.375% participating interest in the NFS project - out of a total 25% interest available for international partners - while the national company QatarEnergy will hold the remaining 75%. Through its combined participating interests in NFE (6.25%) and NFS, TotalEnergies will add 3.5 Mtpa of LNG production to its growing worldwide LNG portfolio by 2028, in line with the Company’s objective to increase the share of natural gas in its sales mix to 50% by 2030.

At the end of August, TotalEnergies and its partner SSE Renewables, announced first power generation from the Seagreen offshore wind farm, located off the coast of Angus in Scotland. The aim is for the 1,075 MW farm to be fully operational in the first half of 2023. The $4.3 billion Seagreen project will be Scotland’s largest offshore wind farm and the world’s deepest fixed bottom wind farm as it is being developed in 59 meters of water depth. Seagreen marks a new step in the development of TotalEnergies’ offshore wind capacity and will contribute to the Company’s objective of reaching 35 GW of renewable electricity capacity worldwide by 2025.

TotalEnergies signed an agreement with the Adani Group in June to acquire a 25% interest in Adani New Industries Limited (ANIL) and create a world-class company for the production and commercialization of green hydrogen in India. ANIL will target a production of one million metric tons of green hydrogen per year by 2030, underpinned by around 30 gigawatts of new renewable power generation capacity, as its first milestone. TotalEnergies’ entry into ANIL is a major milestone in implementing the Company’s low carbon hydrogen strategy, which aims both to decarbonize all the hydrogen used in its European refineries by 2030, and to make TotalEnergies a pioneer in the mass production of green hydrogen to meet demand. This future production capacity of green hydrogen will be a major step in increasing TotalEnergies’ share of new decarbonized molecules - including biofuels, biogas, hydrogen, and e-fuels - to 25% of its energy production and sales by 2050.

In October, TotalEnergies (TTE) partnered with Casa dos Ventos, Brazil’s leading renewable energy developer, to create a joint-venture (TTE 34% / CDV 66%) to develop, build and operate the 12 GW renewables portfolio of Casa Dos Ventos. This portfolio currently includes 700 MW of onshore wind capacity in operation, 1 GW of onshore wind under construction, 2.8 GW of onshore wind and 1.6 GW of solar projects under well advanced development. Moreover, the newly-formed JV will have the right to acquire the current and new projects that are or will be developed by CDV as they reach execution stage. The JV will thus be able to jointly foster its growth by accessing an additional portfolio of at least 6 GW, that CDV will continue to expand. TotalEnergies will have the option to acquire an additional 15% equity share in the JV after 5 years.

At the end of August, Northern Lights and Yara signed a commercial agreement to transport and store the CO₂ captured from Yara Sluiskil, an ammonia and fertilizer plant in the Netherlands. From early 2025, 800,000 tons of CO₂ per year will be captured, compressed, and liquefied in the Netherlands and then transported to the Northern Lights site to be permanently stored in geological layers some 2,600 meters under the seabed in the Norwegian North Sea. This agreement, the first of its kind worldwide, is a major milestone in the decarbonization of heavy industry in Europe, paving the way for international CO₂ transport and storage as a service. TotalEnergies aims to develop a CO₂ storage capacity of more than 10 million tons per year by 2030.