In a press release announcing the award of the 20-year contract in New Jersey, TotalEnergies noted that there was a guaranteed level of OREC revenue, with a first-year set price of USD 131/MWh after the start of commercial operations, inflated yearly by 3 per cent, and the benefit of a 30 per cent Inflation Reduction Act (IRA) tax credit.

“The contract awarded by the NJBPU also includes a one-time inflation adjustment mechanism to compensate for changes in construction costs environment until the final investment decision,” TotalEnergies states.