TotalEnergies was awarded the maritime concession N-11.2 by the German Federal Network Agency, to develop 1.5 gigawatts (GW) of offshore wind power, the Paris-based company announced June 21.

Concession N-11.2 is located in the North Sea, nearly 120 km north-west of the German island of Heliogland. The lease covers an area of approximately 156 sq km.

Under the terms of the award, Offshore Wind One GmbH will pay Germany’s government €196 million (US$209.54 million), allocated for marine conservation. TotalEnergies is a shareholder of Offshore Wind One.

TotalEnergies said an €88 million (US$94.11 million) annual contribution will also be paid to the electricity transmission operator on the N-11.2 site for a 20-year term.

N-11.2 intends to help the company develop a 3.5-GW offshore wind hub in the German North Sea, “building upon the successful award of concession N-12.1 in the German North Sea last year,” said Stéphane Michel, president of gas renewable and power at TotalEnergies.

“This marks a new step for the deployment of TotalEnergies’ integrated power strategy in Germany after the acquisition of Quadra Energy, one of the top three aggregators of renewable electricity production and of Kyon Energy, a prominent developer of battery storage solutions,” Michel said.

The concession will run for a term of 25 years and is extendable to 35 years, TotalEnergies said.