TotalEnergies SE (TTE) is getting serious about the industrial clean power business. The French energy giant announced Thursday it signed two clean firm power agreements with Airbus SE (EADSY) to deliver 3.3 terawatt-hours of electricity to the aircraft manufacturer's major facilities in Germany and the United Kingdom.
Starting in 2027, the baseload electricity will flow from 200 MW worth of new renewable assets. Here's the interesting part: this supply will cover half of the energy requirements at these Airbus sites for the next decade. That's a substantial commitment on both sides, locking in renewable energy supply through 2037.
Why This Deal Matters
Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies, explained the strategic angle: "These new contracts illustrate TotalEnergies' ability to deliver turnkey clean firm power solutions on multi-geographies to support our industrial customers in their energy transition. These contracts, which rely on our integrated power portfolio combining both renewable and flexible assets will contribute positively to the profitability of our electricity business."
Florent Massou dit Labaquère, EVP of Operations for the Commercial Aircraft business at Airbus, highlighted the operational benefits: "These agreements will help Airbus secure reliable low-carbon energy, supporting our goal to increase renewable electricity across our sites. Complementing our existing collaboration with TotalEnergies to scale SAF production capabilities, these PPAs are part of our holistic approach to build resilience in our operations."
TotalEnergies' Broader Energy Push
The Airbus deal isn't happening in isolation. Earlier this week, TotalEnergies announced a joint investment platform with Tikehau Capital focused on expanding electric vehicle charging infrastructure in urban public spaces across Belgium and the Netherlands. The partnership aims to help municipalities navigate the EV transition while cementing TotalEnergies' position as a leading public charging provider in the Benelux region.
In February, the company also signed a Memorandum of Understanding with Kuwait Oil Company to deepen collaboration, share technical expertise, and conduct joint studies.
TotalEnergies is scheduled to release fourth-quarter earnings on February 11.
Price Action: TTE shares traded down 0.88% at $74.21 in premarket activity Thursday.
