Is TotalEnergies Abandoning German Offshore Wind Contracts?

TotalEnergies could be preparing to abandon multiple offshore wind contracts in Germany.

The move follows a similar withdrawal from US projects in spring, raising questions about the energy company's environmental commitments.

According to German newspaper SZ, TotalEnergies is seeking an exit from several German offshore wind leases it secured in a 2023 state auction.

The company had committed to paying around US$7bn for these sites.

German wind sector concerns

The pattern mirrors actions in the US.

In March, the Trump administration paid TotalEnergies US$1bn to relinquish two offshore wind leases at Carolina Long Bay and in the New York Bight. Those projects represented a combined planned capacity of 4GW.

For a company with 2030 carbon reduction targets and a 2050 net-zero goal, the withdrawals could indicate a return to fossil fuel priorities.

TotalEnergies exported 19 million tonnes of US LNG in 2025 alone.

TotalEnergies maintains it is "actively working on the realisation of our projects" but is seeking "practical solutions".

The statement leaves room for interpretation about the company's actual intentions.

European grid operator TenneT has voiced concern about the potential withdrawal.

Around 90% of the US$14.6bn raised in the 2023 auction was earmarked to fund the expansion of offshore power lines and converter stations connecting wind farms in the North and Baltic Seas to the mainland grid.

"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.

Germany's economy ministry has been blunt in its response, noting that under the current law, bidders have no legal right to withdraw and that it expects the projects to proceed.

A legal grey area around the final investment decision could enable extended delays, however, as this is only triggered once an official grid connection date is set.

US taxpayer-funded exit

The arrangement between TotalEnergies and the Trump administration saw Washington repay almost US$1bn in lease fees from taxpayers' money.

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The deal allowed the company to walk away from two major offshore wind projects.

Patrick Pouyanné, Chief Executive Officer at TotalEnergies, offered a candid justification for the decision.

"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 United States, in exchange for the reimbursement of the lease fees," he says.

The company committed to redirecting the funds into US gas and power infrastructure, including financing the Rio Grande LNG plant in Texas.

The decision drew criticism from renewable energy advocates.

Sam Salustro, Senior Vice President of Policy and Market Affairs at the Oceantic Network, described the arrangement as political theatre.

"Paying to remove affordable, homegrown energy out of the equation leaves American consumers struggling to pay their electricity bills," he says.

Climate targets at risk

Germany is aiming to reach 30GW of offshore wind capacity by 2030. Only around 10GW had been installed by the end of 2025, according to SZ.

The four projects from the 2023 auction round, due online between 2030 and 2032, alone account for 7GW of that gap. If TotalEnergies abandons its contracts, that figure will be slashed.

A 2025 auction round in Germany failed to attract a single bid. The outcome could show the unpredictable nature of renewable energy auctions in the current market environment.

BWO, the offshore wind industry association, acknowledged this week that the situation now touches on "central questions of industrial continuity, security of supply and the energy policy credibility of Germany as an offshore location".

The statement suggests wider concerns about investor confidence in German renewable infrastructure.

The scale of commitments now being unwound on both sides of the Atlantic could signal real unrest in the energy transition. For TotalEnergies, pivoting away from wind and back towards gas is not a dramatic operational leap, but the timing conflicts with stated decarbonisation goals.