TotalEnergies Geothermal Strategy 2025: From Cautious Assessment to Strategic Partnerships

Industry Adoption: How TotalEnergies is Moving from Geothermal Evaluation to Strategic Integration

Between 2021 and 2024, TotalEnergies’ approach to geothermal was one of cautious, tactical assessment, starkly contrasting its aggressive multi-billion-dollar expansion in solar and wind. The company’s activity was almost singularly focused on a technical application: using its deep subsurface expertise to de-risk geothermal for a specific use case. The cornerstone of this period was the commissioning of the Aquarius North Sea Geothermal Assessment project, a 12-month study led by the ZeGen Energy consortium. This initiative was designed to evaluate the feasibility of repurposing existing offshore oil and gas infrastructure for geothermal energy, aiming to decarbonize its own operations. This narrow focus on a single, complex application highlights a strategy of leveraging legacy strengths to explore a new energy source without significant capital risk. This period was defined by evaluation, not broad adoption.

The year 2025 marks a clear inflection point, where the strategy has evolved from singular assessment to strategic diversification. The completion of the North Sea assessment in February 2025 closed one chapter and opened another. TotalEnergies immediately pivoted, engaging in a broader range of collaborations that signal a multi-pronged approach to industry adoption. The April 2025 partnership with the University of Texas at Austin Energy Institute represents a move upstream, aiming to shape and access early-stage research to overcome technology hurdles. Simultaneously, the framework agreement with clean energy leader Masdar in February 2025 signifies a downstream move, targeting market entry and project deployment in high-potential regions like Africa. This shift from a single technical study to a portfolio of academic, market-entry, and technology-scouting partnerships shows TotalEnergies is no longer just evaluating geothermal but is actively building an ecosystem to integrate it as a viable, albeit measured, component of its future energy mix. The threat remains that while TotalEnergies builds its foundation, agile competitors like Fervo Energy are already securing commercial offtake agreements, but the opportunity lies in entering the market with a more diversified and de-risked strategy.

Table: TotalEnergies’ Low-Carbon Energy Investments

Table: TotalEnergies’ Geothermal-Related Partnerships

Geography: TotalEnergies’ Geothermal Footprint Expands from North Sea to Global Markets

Between 2021 and 2024, TotalEnergies’ geothermal activity was geographically concentrated in the UK North Sea. This focus was entirely driven by the Aquarius assessment project, a strategic choice to explore geothermal potential in a region where the company possesses extensive offshore infrastructure and operational knowledge. This singular geographic focus demonstrated a risk-averse strategy aimed at internal decarbonization rather than mainstream market development. While a renewable energy partnership was formed in Turkey with Rönesans Holding, and discussions were held regarding green power in Papua New Guinea, these were opportunistic footholds rather than dedicated geothermal plays. The map of activity was limited and tied directly to existing fossil fuel operations.

Beginning in 2025, the geographic strategy has visibly expanded and diversified. The conclusion of the North Sea assessment was followed by decisive moves into new, globally significant regions. The partnership with Masdar specifically targets Africa, marking a strategic entry into emerging markets where geothermal can provide baseload renewable power and address energy access challenges. In parallel, the collaboration with the UT Energy Institute plants a flag in Texas, USA, a global center for both subsurface expertise and energy innovation. This move is particularly timely, as North America saw $1.7 billion in geothermal funding in Q1 2025 alone. This deliberate expansion from a single, operationally-linked region to a dual focus on high-growth emerging markets (Africa) and centers of innovation (USA) shows that TotalEnergies is now pursuing a truly global geothermal strategy.

Technology Maturity: TotalEnergies’ Shift from Geothermal Assessment to Application

In the 2021–2024 period, TotalEnergies acted as a technology *evaluator* rather than a developer. Its focus was on the assessment of mature technologies for a novel application. The Aquarius North Sea project was a prime example, serving as a feasibility study to determine if existing geothermal drilling and power generation methods could be viably deployed in a challenging offshore environment. The company was not piloting new technology but rather conducting due diligence on the commercial and technical readiness of established systems for its specific operational needs. This conservative stance placed it behind innovators like Fervo Energy, which were already advancing and piloting next-generation technologies like Enhanced Geothermal Systems (EGS).

From 2025 onward, TotalEnergies has matured its approach to engage directly with the technology development lifecycle. The partnership with the UT Energy Institute brings the company into the world of early-stage research, allowing it to influence and gain insight into breakthrough technologies before they are commercialized. This directly addresses the need to understand and de-risk maturing systems like EGS. Concurrently, the Masdar agreement signals a readiness to deploy commercially available technologies at scale in new markets. While the company has not yet launched its own technology or invested directly in a tech innovator like XGS Energy, its strategy has clearly shifted from passively assessing off-the-shelf solutions to actively engaging with the full spectrum of technological maturity, from foundational research to commercial deployment.

Table: SWOT Analysis of TotalEnergies’ Evolving Geothermal Position

Forward-Looking Insights: What’s Next for TotalEnergies in Geothermal?

The data from 2025 signals that TotalEnergies has deliberately shifted from a passive observer to a strategic ecosystem builder in the geothermal sector. While its massive investments in solar and wind still dominate its renewables portfolio, the company is laying a broad and patient foundation for future geothermal growth. This partnership-led approach, focused on research, market entry, and technical enablement, is gaining significant traction. However, the lack of direct capital investment in projects or technology companies means TotalEnergies is still at risk of losing ground to pure-play developers in the race to commercial scale.

Looking ahead, the most critical signal to watch will be a formal decision on a North Sea pilot project. Moving from the completed Aquarius assessment to a tangible pilot would validate its decarbonization strategy and mark the company’s first major capital commitment to a geothermal asset. Furthermore, any specific allocation for geothermal within the planned $15-17 billion annual CAPEX for 2027-2030 would signal a definitive change in priority. Finally, a strategic acquisition or direct investment in a technology innovator like XGS Energy or Eavor would indicate an ambition to lead, not just participate. For executives and investors, monitoring these capital and M&A signals is key to understanding when TotalEnergies will fully commit to turning its geothermal options into a core business.

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Frequently Asked Questions

How has TotalEnergies’ geothermal strategy evolved since 2024?
Before 2025, TotalEnergies’ strategy was a cautious assessment focused on a single use case: the Aquarius North Sea project to evaluate decarbonizing its own offshore assets. Since early 2025, the strategy has pivoted to strategic integration. This new approach involves building a diverse ecosystem through partnerships for early-stage research (University of Texas), market entry in new regions like Africa (Masdar), and technology enablement, moving from simple evaluation to active preparation for adoption.

Is TotalEnergies investing a lot of money into geothermal energy?
Currently, no. While TotalEnergies plans to invest approximately $5 billion annually in low-carbon energies, the specific allocation for geothermal is undisclosed and considered to be a minimal portion compared to its major investments in solar and wind. The company has not yet announced a major direct capital investment in a geothermal project or acquired a dedicated geothermal technology company.

What are TotalEnergies’ most important recent geothermal-related partnerships?
Three key partnerships in 2025 highlight its new strategy. The completion of the Aquarius North Sea assessment (led by ZeGen Energy) marked the end of its initial evaluation phase. The partnership with the University of Texas at Austin Energy Institute gives it access to early-stage research. The framework agreement with Masdar is focused on market entry and deploying clean energy, including geothermal, in high-potential regions like Africa.

How does TotalEnergies’ geothermal approach compare to competitors like Fervo Energy?
TotalEnergies is taking a patient, broad, ‘ecosystem-building’ approach, using partnerships to de-risk technology and markets before making large capital commitments. In contrast, agile competitors like Fervo Energy are moving faster to advance specific technologies (like Enhanced Geothermal Systems), execute pilot projects, and secure commercial offtake agreements, representing a more direct and aggressive market-entry strategy.

What are the key future signs that would signal TotalEnergies is fully committing to geothermal?
Three key signals would indicate a deeper commitment. First, a decision to fund a tangible pilot project in the North Sea based on the completed Aquarius assessment. Second, a specific, public capital allocation for geothermal within its annual investment budget. Finally, a strategic acquisition or a direct investment in a geothermal technology innovator like XGS Energy or Eavor.