TotalEnergies and EPH launch joint venture centred on fossil fuels
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Key Findings
A planned joint venture between TotalEnergies and fossil fuel utility EPH will be a high-emission power generator. The joint venture should therefore provide clear and timely disclosures to allow stakeholders to assess carbon lock-in risks.
TotalEnergies’ acquisition of high-emitting gas power plants undermines its climate transition plan, as the joint venture’s planned use of hydrogen for gas plant combustion is, in IEEFA’s view, uncertain and not a form of renewable energy generation.
TotalEnergies’ acquisition rationale is underpinned by financial benefits from capacity payments. In IEEFA’s view, this reliance reflects a distortion in energy market fundamentals and incoherence with energy transition trends.
Since EPH retains its exposure to high-emitting assets, its green financing strategy remains incoherent, even as a recent green bond issuance by one of its subsidiaries expands this strategy.
On 17 November 2025, oil major TotalEnergies and fossil fuel power utility Energetický a průmyslový holding (EPH) announced the creation of a 50-50 joint venture (JV) comprising 14 gigawatts (GW) of operational and under-construction power assets. EPH will sell a 50% stake in nearly its entire flexible power generation portfolio, mostly comprising gas-fired plants, to TotalEnergies in exchange for 4.1% of TotalEnergies’ share capital, valued at €5.3 billion. Following the deal, EPH will become one of the TotalEnergies’ top shareholders.
The transaction is significant for EPH’s business profile. EPH’s flexible power generation segment accounted for 39% of the company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) in 2024 and nearly all its Scope 1 emissions. The deal also has implications for TotalEnergies’ business strategy as the move appears inconsistent with the company’s transition commitments and plans.
The JV will be among Europe’s largest gas power producers, with plants across Italy, the UK, the Netherlands and Ireland. It will have to navigate climate transition risks as Europe’s commitment to renewable energy accelerates. Any continued expansion in gas-fired assets would further lock in carbon emissions in Europe’s power sector.
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