TotalEnergies DAC Initiatives for 2025: Key Projects, Strategies and Partnerships

TotalEnergies’ Strategic Pivot: From Carbon Storage to an Integrated DAC Ecosystem

An Inflection Point in Carbon Management Strategy

Between 2021 and 2024, TotalEnergies executed a foundational strategy focused on securing the building blocks for a large-scale carbon capture and storage (CCS) business. The period was characterized by strategic acquisitions like Talos Low Carbon Solutions to gain entry into the U.S. CCS market and partnerships to develop storage hubs in stable regions like Malaysia and the North Sea. The primary application was developing the physical and digital infrastructure for CO2 sequestration, evidenced by the Northern Lights project reaching operational readiness and the initiation of digital twin collaborations with SLB and Microsoft. This was a deliberate, infrastructure-first approach, preparing the ground for future carbon management services.

The year 2025 marks a significant inflection point, signaling a strategic evolution from infrastructure-building to ecosystem creation. While continuing to scale its core CCS assets with a massive $714 million investment in Northern Lights Phase 2, TotalEnergies aggressively diversified into the full spectrum of carbon removal technologies and markets. The company is now directly fostering Direct Air Capture (DAC) innovation through academic partnerships with Georgia Tech’s DirACC and funding for specific R&D at DTU. Simultaneously, it is building the demand side of the equation by partnering with NativState to generate high-quality carbon credits from forestry. This pivot from a singular focus on geological storage to a diversified portfolio including DAC technology, utilization pilots (aviation fuel from CO2), and nature-based solutions reveals a more sophisticated, integrated strategy. This variety indicates that TotalEnergies now views carbon management not just as a service to decarbonize industrial emitters, but as a comprehensive business encompassing atmospheric carbon removal and environmental commodities. The new opportunity lies in integrating these currently distinct verticals; the threat is the inherent complexity of managing capital-intensive infrastructure alongside speculative R&D and volatile carbon markets.

From Strategic Acquisitions to Scaling Capital Deployment

TotalEnergies’ investment pattern illustrates a clear progression from foundational acquisitions to major capital commitments aimed at scaling its carbon management operations. Early investments focused on acquiring key assets and expertise, such as the $148 million purchase of Talos Low Carbon Solutions. This was complemented by a $100 million investment in nature-based solutions to build a carbon credit portfolio. The strategy has since escalated dramatically, culminating in the 2025 final investment decision for the Northern Lights project’s expansion, a commitment of approximately $700 million alongside partners. This demonstrates a transition from buying into the market to actively leading and scaling it.

Table: TotalEnergies’ Key Carbon Management Investments (2024-2025)

Building an Ecosystem Through Strategic Alliances

TotalEnergies’ partnership strategy has evolved from securing storage capacity to cultivating a multi-faceted ecosystem that supports the entire carbon value chain, with a notable new emphasis on DAC. The collaborations in 2025 reflect a deliberate push into technology development, market creation, and project enablement. Alliances with Georgia Tech’s DirACC, the Carbon to Value Initiative, and funding for DTU’s research move TotalEnergies directly into the DAC innovation space. Simultaneously, partnerships with NativState and 1PointFive focus on creating the market and logistical pathways for carbon removal, from forest credits to geological storage for DAC facilities. This represents a sophisticated layering of alliances on top of the foundational storage partnerships established in prior years.

Table: TotalEnergies’ Key Carbon Management Partnerships (2022-2025)

A Geographic Shift Towards a Transatlantic Strategy

Between 2021 and 2024, TotalEnergies’ geographic strategy for carbon management was heavily concentrated in Europe, particularly the North Sea. This region offered favorable geology and strong regulatory support, making it the ideal ground for foundational projects like Northern Lights in Norway and the Aramis project in the Netherlands. The acquisition of Talos Low Carbon Solutions in March 2024 marked the company’s first major strategic entry into the U.S. Gulf Coast, but Europe remained the center of gravity for its operational and planned CCS infrastructure.

Beginning in 2025, the geographic focus has decisively shifted to a balanced, transatlantic model where the United States now rivals Europe as a strategic hub. While the North Sea remains a cornerstone, evidenced by the Phase 2 investment in Northern Lights, the U.S. has become the focal point for next-generation growth. The concentration of new partnerships in the U.S.—including technology development with Georgia Tech (Georgia), DAC project enablement with 1PointFive (Texas), and nature-based solutions with NativState (Arkansas and other states)—highlights this pivot. This strategic expansion is likely driven by a combination of a vibrant U.S. technology ecosystem and robust policy incentives. This dual-continent approach allows TotalEnergies to de-risk its portfolio by avoiding dependence on a single regulatory regime and to capitalize on the unique strengths of each region: Europe for large-scale, mature storage services and the U.S. for pioneering DAC technology and new carbon markets.

From Commercializing Storage to Piloting DAC

An analysis of TotalEnergies’ activities reveals a clear evolution in technology maturity. In the 2021-2024 period, the focus was on moving established CCS value chains from pilot to commercial scale. The key technological validation point was the readiness of the Northern Lights facility in September 2024 to receive and store CO2, representing the commercial launch of a large-scale, open-access storage service. Point-source capture was also being deployed commercially, as seen in the Grandpuits project. During this time, DAC remained largely in the exploratory research phase, with initiatives like using AI and quantum computing to discover new capture materials. The strategy was to commercialize what was proven (storage) while researching what was next (DAC).

The 2025 period marks a crucial shift where DAC technology transitions from the laboratory toward field application, while commercial CCS infrastructure begins to scale. The tripling of capacity at Northern Lights moves the project from a single commercial asset to a scaling regional hub. More importantly, DAC is no longer just an R&D concept. The partnership with Georgia Tech’s DirACC, the grant to DTU to upscale a specific DAC component, and the collaboration to permit storage for the Stratos DAC plant are all tangible steps toward piloting and deploying the technology. Furthermore, the plan to produce aviation fuel from captured CO2 at the Leuna refinery is a concrete pilot of carbon utilization (CCU). This demonstrates that while the full DAC value chain is not yet at commercial scale, its key components are now moving firmly into the pilot and demonstration phase, validating investor interest and market timing.

Table: SWOT Analysis of TotalEnergies’ Carbon Management Strategy

The Year Ahead: Integrating a Diverse Carbon Portfolio

The flurry of activity in 2025 signals that TotalEnergies is rapidly assembling the components of a comprehensive carbon management business. The year ahead will be less about new announcements and more about execution and integration. The market should expect to see the first tangible outputs from the company’s new DAC-focused partnerships, such as the announcement of a specific pilot project with DirACC or performance milestones from the DTU-funded research. Progress on securing EPA permits for the Stratos facility will be a critical bellwether for the entire commercial DAC sector.

The signal to watch most closely is integration. The key question is whether TotalEnergies can connect its disparate assets into a synergistic system. For instance, will it link its European DAC pilots to the Northern Lights storage hub? How will the carbon credits from NativState be used to support its broader decarbonization goals or offered to customers? Direct Air Capture and nature-based solutions are clearly gaining traction, augmenting—not replacing—the core CCS infrastructure strategy. The forward-looking challenge is no longer about choosing a technology, but about demonstrating that this complex, multi-faceted portfolio can operate as a cohesive and profitable business.

Frequently Asked Questions

What is the main change in TotalEnergies’ carbon management strategy in 2025?
In 2025, TotalEnergies pivoted from a strategy focused primarily on building carbon capture and storage (CCS) infrastructure to creating a comprehensive, integrated ecosystem. This new approach includes actively developing Direct Air Capture (DAC) technology, investing in nature-based solutions like forestry to generate carbon credits, and piloting carbon utilization projects, such as creating aviation fuel from CO2.

Is TotalEnergies abandoning its large-scale CCS projects like Northern Lights?
No, the strategy is an expansion, not a replacement. TotalEnergies is continuing to scale its core CCS assets, as demonstrated by the major $714 million investment in Northern Lights Phase 2. The new focus on DAC and nature-based solutions is designed to augment and integrate with its foundational storage infrastructure, creating a more diverse and comprehensive carbon management portfolio.

Why has the United States become a new strategic focus for TotalEnergies’ carbon management?
The U.S. has become a strategic hub alongside Europe due to its vibrant technology ecosystem and robust policy incentives. This makes it an ideal location for pioneering next-generation growth, particularly in Direct Air Capture (evidenced by partnerships with Georgia Tech and 1PointFive) and new carbon markets through nature-based solutions like the NativState partnership.

How do partnerships with forestry companies and academic institutions fit into this new strategy?
These partnerships are crucial for building the new ecosystem. Academic alliances, like with Georgia Tech’s DirACC and DTU, move TotalEnergies directly into the DAC innovation space to accelerate technology development. Partnerships with companies like NativState are meant to build the demand side of the carbon removal market by generating high-quality carbon credits, creating a portfolio for voluntary offsetting.

What is the biggest risk associated with TotalEnergies’ new, more complex strategy?
The primary risk is the increased complexity and the unproven nature of the new ventures. The strategy now balances mature, capital-intensive infrastructure like Northern Lights with speculative R&D in DAC and volatile carbon markets from nature-based solutions. The business models for both DAC and high-quality voluntary carbon credits are not yet proven at scale, introducing significant market and commercialization risk alongside the operational risk of its established CCS projects.

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