TotalEnergies SE (NYSE: TTE) and EDF Group signed a 12-year Nuclear Production Allocation Contract starting January 1, 2028, according to a company statement.

Under the agreement, EDF will allocate TotalEnergies a share of output from its operating nuclear fleet to cover approximately 60% of electricity needs at TotalEnergies' refining and chemicals sites in France, estimated at 400 MW.

The contract allows TotalEnergies to access nuclear power generation while enabling EDF to share risks and costs associated with production variability. EDF retains sole responsibility for operating its nuclear assets.

"I am delighted with this win‑win agreement, the result of constructive dialogue with EDF, which will enable our electricity‑intensive industrial sites in France to secure, over the long term, a significant share of their electricity supply with competitive low‑carbon power," said Patrick Pouyanné, Chairman and Chief Executive Officer of TotalEnergies.

Bernard Fontana, Chairman and Chief Executive Officer of EDF Group, stated the agreement provides "the long‑term visibility they need to ensure their sustainability" for refining and chemicals activities through access to competitive, low-carbon electricity.

EDF operates as an integrated energy company across generation, distribution, trading and energy services. The company reported producing 515 TWh of low-carbon generation in 2023, representing 95% decarbonized power with a carbon intensity of 26.5 gCO₂/kWh.

TotalEnergies operates as a global integrated energy company producing oil, biofuels, natural gas, biogas, low-carbon hydrogen, renewables and electricity across approximately 120 countries with more than 100,000 employees.