Good afternoon, this is the conference operator. Welcome everyone to Technip Energies' Half Year 2023 Financial Results and Conference Call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star 0 on their telephone. Now, I would like to turn the conference over to Mr. Philip Lindsay, Head of Investor Relations of Technip Energies. Please go ahead, sir.
Thank you, Alessia. Hello to everybody, and welcome to Technip Energies financial results for the first half of 2023. On the call today, our CEO, Arnaud Pieton, and our CFO, Bruno Vibert, will present our business and financial highlights as well as the outlook. This will be followed by Q&A. Before we start, I would urge you to take note of the forward-looking statements on slide 2. I will now pass the call over to Arnaud.
Thank you, Phil, and welcome to our financial results presentation for the first half, where we have delivered on a broad range of operational, commercial, and strategic objectives. Revenues of EUR 2.8 billion reflect strong momentum in TPS and lower project delivery activity, resulting from the maturity of the portfolio, as well as our exit from the Arctic LNG 2 project. We expect project delivery activity to increase sequentially in the second half. Strong execution enabled us to deliver 100 basis points of margin improvement year-over-year, and with profitability trending above the full year outlook, we are raising EBIT margin guidance by 30 basis points to a range of 7%-7.5%.
The award of North Field South in Qatar is a key highlight. When combined with sustained commercial strength in TPS, our backlog has risen by more than 40% year-over-year to nearly EUR 19 billion. A record high for Technip. Finally, we deployed our strategy through new investments to expand our lab network and digital capabilities, as well as technology developments and product launches to enhance our leadership in the markets for carbon capture and the decarbonization of ethylene. Moving to operational highlights, I will first comment on our exit from the Arctic LNG 2 project, which we successfully completed in the Q2 , in line with the schedule that we had committed to in Q3 last year. The complexity of this exit should not be underestimated. I commend the team's excellent planning and resolve in reaching this outcome.
As a result of the exit from Arctic LNG 2, Technip Energies no longer has any commercial or contractual relationship with the project. Turning to the ongoing portfolio, we continue to make strong progress delivering important milestones, de-risking execution, and completing projects. This includes the delivery of the world's first liquefied CO2 loading arms to Norway for installation on the Northern Lights CCS project. Overall, I am really pleased with our solid first half.
Turning to the major commercial success of the quarter. In May, we were awarded the prestigious North Field South LNG project in Qatar, a contract for two mega trains, each of 8 million tonnes per annum, that will boost Qatar LNG production capacity to 126 million tonnes per annum. This award meets all our selectivity criteria. We perform the FEED and have an intimate understanding of the liquefaction technology.
With its large CCS scope and other energy management solution, it reflects our ability to integrate technologies towards lower carbon energy. This award also demonstrates the strength of our relationship with QatarEnergy and Qatarg as, as well as our continued leadership in the LNG market. As a result of the NFS and the other projects in our portfolio, Technip Energies is executing 35% of global LNG capacity currently under construction. If I look at the LNG market fundamentals, they remain strong, and we see a robust FID cycle until at least 2025. Beyond Qatar, we are actively engaged on multiple prospects in the Americas, Africa, and other parts of the Middle East, and we are confident that Technip will secure additional awards in the coming two to three years.
Before passing to Bruno, let's take a look at TPS, where commercial success and market penetration is supporting strong revenue momentum in our highest margin segment. TPS benefited from a surge in order intake during 2022, with relatively larger awards in ethylene and renewable fuels being complemented by strong front-end engagement and services activity across a range of energy transition domains. While the first half of this year has seen a reduced number of the larger TPS awards, strong order momentum has pushed backlog to new highs, up nearly 80% year-over-year. This is driving material growth in TPS revenues and underpins confidence in our medium-term ambition to reach annual revenues of EUR 2 billion, a near doubling of top line versus 2020.
This further confirms the strength of our hybrid model, a model which combines a long cycle project delivery business with a short cycle margin accretive TPS that enables T.EN to deliver strong financial performance across energy cycles. I will now pass over to Bruno to discuss financial highlights.
Thanks, Arnaud, and good afternoon, everyone. Let's first look at the highlights of our financial performance for the first half of the year. Adjusted revenues were 13% lower year-over-year, at EUR 2.8 billion, impacted by the maturity of the project delivery portfolio and the exit from the Arctic LNG 2 contract. Partially offset by activity ramping up on Qatar NFE and very strong TPS growth of 45%. adjusted recurring EBIT increased slightly year-over-year, despite the lower revenues, thanks to strength in margins, which increased by 100 basis points year-over-year to 7.3%, and benefiting from solid product execution and the growth in TPS. Beyond the operational performance, certain factors impacted Technology, Products & Services.
Higher interest income year-over-year was more than offset by non-recurring items relating to the PNF settlement, as well as the technical accounting and non-cash charges associated with our orderly exit from Russia and the sale of our main Russian operating entity. As a result, EPS reduced by 5% year-over-year. Adjusted order intake for the first half was EUR 9 billion, equivalent to a book-to-bill of more than 3, benefiting from the major NFE award in Qatar and strong TPS contribution. Net cash at period end was EUR 2.7 billion, further highlighting the strengths of our financial position. In summary, a very solid first half, closing legacy items and building up for the future. Turning to guidance.
Supported by strong first half execution, and as mentioned by Arnaud, we are raising adjusted recurring EBIT margin guidance from 6.7%-7.2% to a range of 7%-7.5%, an increase of 30 basis points. The consistency and quality of our portfolio and strengths in execution fully supports this margin outlook. For revenue, we expect to sustain momentum in TPS and drive sequential growth in project delivery in the second half, well supported by our backlog schedule. As such, we confirm our full year expectation for revenues with a range of EUR 5.7 billion-EUR 6.2 billion. Regarding tax, the effective tax rate in the first half was above the full year guided range, specifically due to the PNF settlement, an exceptional item that is not deductible for tax purposes.
Excluding the impact of the PNF settlement, the underlying tax rate is 28.6% for the first half. On a full year basis, we expect the settlement to have a lesser impact and maintain our tax rate guidance of 26%-30%, albeit we are likely to be towards the top end of the range. Turning to our segment reporting and starting with project delivery. Revenues are materially lower year-over-year, reflecting the completion of the Yamal LNG warranty phase and the exit from the Arctic LNG 2 project. The continued ramp-up of activity on Qatar NFE and strong volumes in downstream projects are starting to offset this, and we expect H1 to reflect the trough for project delivery revenues. Execution remains strong, with notable strength in margins at 7.8%, up 140 basis points year-over-year.
With NFE in backlog and potential for additional projects awards materializing in the coming quarters, portfolio maturity will become more of a balanced blend of early and later stage projects, bringing margins to a more normalized level. Backlog has increased substantially by 37% year-over-year to a record EUR 16.8 billion, equivalent to more than three times 2022 segment revenues and providing excellent forward visibility. Turning to TPS, where our strategic emphasis and commercial focus are yielding very positive results. Revenue growth of 45% year-over-year benefited from strong order momentum throughout the last 18 months, leading to higher technology and product-related volumes, including proprietary equipment for FLNG and services activity in the renewable fuels market. In addition, engineering services activity remains strong, with growth in Pre-FEED and FEED work across various energy transition domains.
Segment EBIT has improved by nearly 50% versus the prior year, led by higher volumes and positive mix, which enabled a 30 basis point margin improvement. Significant commercial success boosted the 12 months book-to-bill to 1.5, and an impressive 78% expansion in segment backlog year-over-year. In summary, TPS is performing at a high level, and as Arnaud will shortly address, we are actively deploying our strategy to invest and build on this positive trajectory. Turning to other key performance item, and beginning with the income statement.
Corporate costs of EUR 31 million are in line with the run rate that we indicated at Q1. As a reminder, the trend higher year-over-year reflects the cost of strategic projects and pre-development initiatives. We continue to anticipate a full year outturn of EUR 60 million-EUR 65 million for corporate costs, which should normalize closer to EUR 50 million in subsequent years.
The net financial income line continues to benefit from central bank decisions and higher global interest rates. In the second half, we could anticipate a contribution broadly in line with that achieved in the first half. Lastly, on the P&L, we occurred non-recurring expense of EUR 34 million. This includes the PNF settlement, as well as the non-cash charges associated with the closure of our Russian operating entities, which we discussed last quarter.
Turning to balance sheet, where our gross debt is stable and our gross cash remains strong at EUR 3.4 billion, notwithstanding working capital outflows and the exit from Arctic LNG 2, which I will come back to shortly. The net contract liability has trended up versus the year-end position, reflecting the growth in backlog during the period. Before passing back to Arnaud, let's conclude on cash flows.
Free cash flow, excluding working capital, was EUR 179 million and consistently strong, supported by cash conversion from EBIT at more than 85%. As a reminder, the positive impact of interest income is currently providing an upside to a normalized conversion from operational execution. The working capital outflow trend from Q1 partially reversed in Q2, thanks to the initial down payment received on NFS. Although, the position year-to-date continues to reflect the maturity of the portfolio and our exit from the Arctic LNG 2 project. As part of this, the cash position was deconsolidated and transferred with the project entities. Other items of note includes the cash dividend of EUR 91 million paid to shareholders in May. I'll now turn the call back to Arnaud for the outlook.
Thank you, Bruno. At our full year results, I presented our key strategic objectives for 2023. I'm happy to report strong progress year-to-date. We have reinforced our growth outlook through strategic initiatives to sustain leadership in our core markets. In addition to the commercial success in LNG, we made strong progress on low carbon ethylene by deploying our eFurnace by T.EN, with leading customers in the U.S. to prove the technology at industrial scale. This new product will contribute to our customers fulfilling their decarbonization objectives. In support of TPS growth, we enhanced our ability to develop proprietary technologies in sustainable chemicals through the acquisition of Processi, a process technology development company with lab facilities that complement our existing R&D footprint in the U.S. and Germany.
We also extended our digital offering by acquiring SEED Energy, a startup that specializes in digital services for multi-technology, renewable energy systems. Now, in laying the groundwork for our future core, we are focusing on the development of innovative products and solutions that will serve to break some of the cost barriers required for these nascent industries to take off. This includes the launch of Canopy by T.EN, a modular, configurable, and integrated suite of post-combustion carbon capture solutions, and the creation of Rely, a new integrated technology and solutions company for green H2 and Power-to-X markets, which we discussed at Q1. Our R&D investments and new product developments are making the path for T.EN's future business and are consistent with our ESG ambitions.
As these net zero compatible markets are still shaping up, we are positioning in a responsible manner, one that focuses on technology differentiation, one that requires limited capital investment, yet creates potential for market leadership and major sources of future earnings. Before diving into Canopy by T.EN, let me introduce Capture.Now. Technip Energies is playing a key role on the journey towards a low-carbon society and is strategically positioned as a leader in CCUS. This is best evidenced by Capture.Now, which consolidates our diverse portfolio of CCS solutions that are available now at scale anywhere in the world. With unique coverage across markets end-to-end integrated offerings across the value chain, we are designing and supporting our clients' decarbonization ambitions. With our comprehensive portfolio for both pre-combustion and post-combustion emitters, we are offering practical solutions and removing complexity.
We also have midstream capabilities, notably with our proprietary CO2 loading arms and early-stage support for major hubs development. We are expanding our portfolio with emerging solutions for carbon management and valorization, for example, as e-fuels. In summary, Capture.Now is our platform to transform carbon into opportunities. As part of Capture.Now, we recently launched Canopy by T.EN, our new range of integrated post-combustion solutions for any emitter. By combining a leading and proven carbon capture technology, CANSOLV, with optimized modularized architecture and seamless integration, Canopy enables customers to capture with confidence. Regardless of scale, industry, or location. This will be particularly important for smaller industrial emitters because we can significantly de-risk project execution, improve schedule certainty, and minimize operational downtime.
For the smaller emitters, that is to say, those emitting less than 1 million tons per annum of CO2, which represent 80% of all emissions in the U.S. and Europe, we offer a range of standardized solutions delivered at site, designed for optimum plant integration and ready for CO2 export. Canopy also extends to bespoke solutions for larger scale emitters. With a CO2 recovery rate in excess of 95%, it is compatible with all types of industrial facilities, both new build and retrofits.
Finally, Canopy is digital by design. Our capture plants are fully instrumented and completely automated for unmanned operation and plant performance monitoring. In summary, Canopy by T.EN is an exciting solution for carbon capture markets that will form an important component of our future core. In closing, our strong first half performance has enabled us to raise our full year margin guidance.
Backlog is at a record level, driven by the NFS LNG award and continued commercial strength in TPS. We are deploying our strategy to sustain our leadership, deliver TPS growth, and build our future core. With that, let's open the line for questions.
This is the conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. To remove yourself from the question queue, please press star and two. Please pick up the receiver when asking questions. Anyone who has a question may press star and one at this time. The first question is from Bertrand Hodee, from Kepler Cheuvreux. Please go ahead.
Yes, thank you for taking my question. I have two. The first one is on the Arctic LNG 2 exit and the cash deconsolidation. Is that cash gone, or do you expect to recover in some ways through, I don't know, dividends or cash being returned by the GB, some cash? Can you confirm how much of cash was deconsolidated this quarter? Second question is around your carbon capture offering. Really excited to see how you have modularized the CANSOLV offering with Canopy. When do you expect to see the first awards with Canopy by T.EN? Thank you.
Thank you, Bertrand. I will take question number 2, and then I'll hand over to Bruno for the cash deconsolidation. Regarding Canopy by T.EN, obviously a very exciting piece of offering. We're really happy that now we have a product that is hitting the market, which is based on a technology that is a proven one. It's one that for which there is no question about the performance of its capture rate, in particular, the cost of OpEx and the rest. It's a very efficient solution from that standpoint. The market potentially is massive when considering how much carbon is to be captured as a complement to the rest of the initiatives towards decarbonizing the world.
All in all, a strong offering and a very exciting opportunity set. The for Canopy. It is likely that starting next year, we will see some awards for Canopy, probably the C200, which is which seems to be one of the optimized one in terms of capacity. Yeah, starting starting next year, we should see Canopy by then, being part of the backlog and the commercial successes.
Okay. Good afternoon, Bertrand. I'll take the first question on the cash and that we are associated with Arctic LNG 2. We exited the Arctic LNG 2 project, which means we transferred, and we went out of the 2 main or the 2 project entities that were covering the scope. To do this transfer, this means transferring our rights, obligation, and the basically contractual dealings that these companies had with the suppliers to continue to go and to undergo the project. This means we, when we deconsolidated, when we transferred our shares on these 2 entities, we deconsolidated the cash, we also deconsolidated the working capital to be liabilities associated to that.
Neutral effect, if you take the net asset view, between cash and, let's say, working cap. On terms of pure gross cash amount, and it's reflected in the cash flow statement, you're looking at something about EUR 100 million, which was deconsolidated, because it was cash associated with working capital for the project entities for which we exited.
Thank you.
The next question is from Daniel Thompson from BNP Paribas Exane. Please go ahead.
Hi, good afternoon, guys. Yeah, two questions from my side. Firstly, we've obviously had the Qatar award and yourself and some of your competitors have expressed, relatively bullish outlook for LNG FIDs over the next few years. I was wondering if, after Qatar and given this outlook, if we should expect any changes to your medium-term guidance within project delivery? You know, for revenues around the EUR 5 billion-EUR 6 billion type of level, and if this might get exceeded. Secondly, on TPS, you've made steady and consistent gains towards building out this business, particularly with the new energy sectors.
Looking beyond the medium-term guidance that you gave around EUR 2 billion of top line, could you speak about your longer-term ambitions for the relative split between the PB and TPS divisions? Thank you.
Thank you, Daniel. To start with Qatar. Obviously, very pleased with this award, which, like I expressed, is ticking all of the boxes that we impose to ourselves in terms of the selectivity principle for a project to make it into our backlog. It's a very important component of our future, and it's entering the backlog in a good condition from the standpoint of the project, really ticking all the boxes that are important to Technip Energies and its future. The outlook for LNG remains strong.
We continue to see the potential for this LNG cycle to extend for several years, with a pipeline of new international opportunities, expanding project visibility out to 2025, 2026, and maybe beyond. It's not changing our view on the medium term guidance for project delivery, for several reasons. First of all, we want to continue to favor quality over quantity. While the number of opportunities are large, we will continue to focus on those that are going to yield the best possible performance for T.EN, and create the most value for the company. We... The good news is that we are not at capacity fully.
Our engineers are busy because there's a high demand for engineering at the moment around the world. We are very positive about that. You know, in the past, I've spoken about the golden age for engineering, our engineers, there's no lack of work. Now, but in terms of how much we can absorb for LNG in particular, we have room for a couple of more large LNG projects. In particular, as their award is, turning to be staggered.
As you know, we don't control the timing of FID, but the nature of the market is such that the opportunities that we are pursuing are likely to have a pace or a sequencing of FID that is favorable to Technip Energies being capable of tackling them, I would say, serenely. Because of, again, the way, the sequencing of them and the project that will be actually closing and new one starting. There's potential for more in terms of how much we can take, but we will concentrate on quality over quantity. Volume matters, but the performance on the bottom line is equally as important.
That's why, at this moment in time, we are not focusing on changing the guidance for the medium-term outlook on project delivery. If we can be in the range that we provided, that's ideal, and our effort will be on continuing to progress TPS to reach EUR 2 billion and to establish TPS at a EUR 2 billion steady EUR 2 billion, so almost an unquestionable EUR 2 billion baseline of top-line revenue, and growing the profitability of TPS. We certainly have an objective to for TPS to be steady at 10% of EBIT. This is what is animating my team, the team and the commercial teams and the technical teams, to establish TPS there.
The potential for TPS growth is and I'm not going to give a quantum or numbers on the front. When you look at the exciting opportunity that Canopy by T.EN is providing, the launch of new products that are aiming at decarbonizing the hardware-based industry, the Ethylene by T.EN is one of the examples, but there's more to come. The range of products that or services that are going to be needed in the domain of you know, sustainable aviation fuel, clean fuels, or green H2.
In the coming months, you will see an increase, I would say, frequency of new product launch by Technip Energies that are going to fuel or offer solutions on the market and be compatible with the net zero trajectory, because this is where we are focusing and where we are investing, on products and solutions that are compatible to achieving or giving a chance to the world to achieve and reach the net zero target. You see more products being launched and solutions hitting the market, and as we are confident in our ability to, for our solutions to be adopted by our clients and the size of the market, then it will fuel TPS.
The fact that, you know, I think I've discussed that in the past with you guys, there are several ways to grow TPS. We need more technologies, therefore we can sell more licenses. With technologies, we can also generate more proprietary products. Proprietary products is the way, like it was the case last year, with ethylene, to actually grow the top line for TPS, because the average order when you sell a product is much higher than the average order when you sell a license or an engineering services. The more new products and the more novelty, the more innovation through converting into solutions, the more potential for TPS. We've not quantified it just yet.
There's more to come. I think we will have the opportunity to talk more about that in a, in a more quantified manner in the future. For now, we're focusing on launching the products, bringing them to maturity, and making sure that the launches are fulfilling needs and what clients are requiring for the net zero trajectory.
Thanks. That's very clear. Thanks, Arnaud.
As a reminder, if you wish to register for a question, please press star and one on your telephone. The next question is from Guillaume Delaby from Société Générale . Please go ahead.
We, bonjour, Arnaud. Bonjour, Bruno. Two housekeeping questions, if I may. Two housekeeping questions for Bruno. First one, tell me if I heard correctly, but I heard that corporate cost, which should be between EUR 60 million-EUR 65 million in 2023, should go down by, should go down to circa EUR 50 million in the coming years. Did I understand correctly? Can you confirm it, and if it is the case, why? The second housekeeping question is that I've been a little bit surprised by the high level of minority interest in Q2, EUR 13.7 million. I guess there might be a little bit of Arctic LNG 2 with that.
What level of minority interest should we assume for the next Q2 of 2023 and for 2024, 2025? Thank you.
Thank you, Guillaume, and thank you always for giving the housekeeping to me. On the corporate cost, you're right. This year, we are guiding towards EUR 60 million to EUR 65 million. This includes some pre-development initiatives for which it's more difficult to plan on a go-forward basis. This will be part of the decrease. On top of that, the corporate costs this year include within our guidance a provision, let's say, on amount for the employee share ownership plan, which is taking place as we speak, and which will be a negative contribution in terms of corporate cost.
As these are more one-off, to some extent, we should be able to decrease to a more normalized level, closer to EUR 50 million in subsequent years. That's why this year of 2023 is somewhat inflated by a couple of operations.
On your other question related to minority interest, you're right. You have a few entities that are constituent to this amount. You have including entities, including in Asia, in South America, as well as Arctic LNG 2, for which we were having a clear majority stake with minority at stake. As we exit the companies, there is more impact or more noise, if you want, in this line for this year. This should normalize, you know, starting 2024, going forward, 2024, 2025, to levels around, you know, EUR 10 million-EUR 15 million, the ones we had in the prior years.
You could expect to have still a bit of movement in the second half associated to those lines as we complete these entries of exiting all the project entities associated to Arctic. Going forward, beyond 2023 should be lesser.
Thank you very much, Bruno. Very clear.
For any further questions, please press star and one on your telephone. The final question is from Jean-Luc Romain from CIC Market Solutions. Please go ahead.
Good afternoon. You mentioned several future projects in LNG. How close are you to, kind of, validating the SNAP technology in Texas, I think? Is it still a 2023 potential FID, potential finalization of contract, or is it more 2024 or later?
Jean-Luc, thank you for your question. The SNAP solution is actually ready to deploy from Technip Energies standpoint, engineering readiness, cost readiness, engagement with yards and the rest. I mean, we've organized the whole ecosystem. From that standpoint, it's ready to deploy. As for the rest, I will answer like I like to answer it, as usual. We don't control the timing of the FID, it's a question for our clients. It can be, it could be within 23 or into next year.
If it's at the limit, you know, it doesn't really matter whether it falls in 23 or 24. The important is for us for the project to materialize, it's more a question for our client here than for us. We are still absolutely engaged. Now, the timing and the likelihood of the FID is definitely a question for our customers. In terms of us being ready in the starting blocks, yes, we are. In terms of SNAP being mature enough as a solution to be deployed, absolutely it is.
Thank you very much.
The next question is from Victoria McCulloch from RBC. Please go ahead.
Thanks very much. Afternoon all. A couple of questions for me, just following up at your end. Could you talk a bit about how you've seen the CCS bidding market evolve over the past, I guess, maybe 6 to 12 months, and how your sort of modular Canopy solution sort of fits into that market and what your customers are asking for? Is this something that, you know, you're seeing people getting closer to making decisions on? Secondly, just in terms of project delivery, could you remind me how we should expect to see margins evolve as the NFS contract progresses? Yeah, just maybe just into the second half of this year and into next year. Thanks very much.
Thank you, Victoria. On the, I would start on the, maybe the margin performance of the project delivery segment and NFS in the context of the rest of the portfolio. The margin performance for our project segment is always driven by a portfolio approach, given the many tens of projects that we undertake at any point in time, okay? It's always important when you think about Technip Energies and the project delivery segment, that you think about it as a portfolio. We have projects that are live, some projects are closing out, and as they are closing out, we, you know, we carry out a thorough assessment of potential liabilities, risks, et cetera, and we carry contingencies that over time are being released.
The performance is that of the portfolio, not that of a set project. It is obvious that the NFE project, which we signed in 2021, the contribution of the NFE project into our EBIT line will grow over time because the project, which is now, you know, in construction phase. We are reaching, I would say, a point in time towards the end of the year 2023, where we feel comfortable or more comfortable or even more comfortable with the level of de-risking of the project execution. Naturally, NFE will contribute more in 2024 than 2023 and 2022.
The performance of the portfolio, again, is that of, you know, multiple projects, some in execution, some starting and some closing. We see that the trajectory for project delivery based on our portfolio is consistent with, you know, the trajectory that we set for the company and what we have been disclosing and reporting so far this year and on a quarter like Q2 this year. The quality and what is in the pipeline is in line with the performance that we're able to display this quarter. That's on your first question. On the second question, related to Canopy and the carbon capture market.
I will start by stating that, you know, in addition to Canopy, we released Capture.Now, which is the platform to transform carbon into opportunities. Capture.Now, or through this platform, you can see the vast level of involvement that Technip Energies has across the value chain and, across the, you know, from emission to transport, to usage of CO2, we have solutions that are pertinent every step of the way. This rich portfolio is, I would say, being put on the forefront through this Capture.Now platform. You see the rich offering we have. For us, the opportunity set is, of course, on carbon capture, but it's also beyond that.
It's on carbon utilization, it's on, it's on transformation. It's really beyond. It's on transportation through the loading arms, and compression or liquefaction solutions. We view the carbon capture market, not so much, not, you know, strictly in isolation, looking at the capture part, it's beyond the capture part. Now, the capture part itself, at the moment in portfolio, under execution or under FEED, there's about 330 million ton per annum that we have under execution. For the world to be on its trajectory, many things need... I mean, net zero trajectory, I'm sorry, many things have to happen.
Carbon capture is one of the things that needs to play, come to play, which means that there's I mean, not probably, but 20 times this amount of CO2 to be captured going forward. Industries will have to adopt this carbon capture solution, and this is why we went live with Canopy. The potential is high. Like everything, it will, it is about making sure that the economics are there. It is about, and that's part of our offering. We not only offer Canopy by T.EN, but we also help our clients with either raising capital or securing the subsidies. It's a full service that we offer in addition to the hardware itself and the solution itself.
You look at the volume we have currently in the portfolio, the volume that the world would have to be capturing, you know, beyond 2020, 2035. You tell yourself there is definitely a lot of potential and business potential in that space, and we are pertinent there. We see it as a great opportunity for T.EN. Again, it is beyond. It is Canopy, it is beyond Canopy, and it's a full service. This is how you should, you should, you should view our offering. We come with a product, but we also can hold our clients' hands, because it is quite new for them in for most of them, and make the whole venture viable through through the subsidies and access to cash.
Thanks. That's really useful and interesting. Could you just add a quick follow-up to that? In terms of both your Canopy product, sorry, and Capture.Now, those are both global solutions that you're offering to really any of your clients. Is that correct?
That's, that's absolutely correct. It's global solutions. It has, we have several ranges of solutions, some that are pertinent for the smaller emitters that we were calling, you know, below 1 million ton per annum of emissions, and some that are pertinent for the larger emitters. Larger emitters can be LNG producers. We are deploying carbon capture solutions on the NFE and NFS projects in Qatar for pre-combustion, so for the gas that's coming off the well. Tomorrow, the next infrastructure may combine pre- and post-combustion, and Canopy and the kinds of technology is actually equally as pertinent. You may see going forward, Canopy being deployed on some of the LNG infrastructure as well. It's really global.
The performance is known. This is why, well, we differentiate, in addition to a very controlled cost of CapEx, to the fact that it is configurable and is, road transportable. The performance of the capture technology is known and is proven, so there's no unknown from that standpoint. I think it's important for anyone that would that is about to make an investment decision, to be able to be feeling extremely comfortable with regard to the predictability of the performance of the solution. Canopy provides that, so there will be no, I mean, people will be praised, actually, for being able to report a performance that is written on paper.
There's no doubt the CCS industry needs that as well. I'll hand over. Thanks very much.
The next question is a follow-up from Jean-Luc Romain from CIC Market Solutions. Please go ahead.
Yeah, following up on, actually, on carbon capture. We see many companies launching what they call groundbreaking technologies to capture carbon, like one recently was Cool Planet. Do you think there will be a kind of consolidation in technologies? And, I believe you have advanced on that. Could it be one of the companies consolidate the carbon capture offering, which is large and growing for now?
Thank you, Jean-Luc. The what is true about carbon capture is that in order to tackle all sorts of emitters, you need more than a single technology. Today, the technologies, and CANSOLV is one of them, is extremely pertinent for post-combustion and certain level of concentration of CO2. We have said, actually, we started last year on the matter. I recall I stated that in order to have a complete offering on carbon capture, we needed to master probably more than a single technology. There is the amine technology, CANSOLV is one, it's really well-known, that is ours or that we are deploying. You have membranes for absorption or adsorption, and that is another way of tackling the market, and you have cryogenic technologies, et cetera.
We are extremely active, not at, actually, consolidating necessarily. I'm not saying this is, this won't be an option, but the primary option that we are looking at for the moment, is rather to develop a solution for carbon capture that would cover the broader possible range of CO2 concentration. We are concentrating on finding a solution that can cover, through a single technology, from low concentration to high concentration. For us, this is, the investment goes and a part of our R&D money goes into that, while deploying existing and known and proven technologies, so that we have solutions for now.
We're also working on the solutions for the future, knowing that, like I said, the important is to tackle and unlock a technology that can be pertinent for low concentration to high concentration, pre- and post-emission. That's really what is keeping us active, more than contemplating today, consolidation. I think it's a little bit too early. It's definitely overvalued, to, overpriced to consolidate. Rather than focusing on that, we are focusing on taking control of our own destiny and being ready with the offerings that are pertinent for a very broad range of emitters. Because like I said, a single solution is not going to be enough to tackle the challenge.
Thank you very much.
The next question is a follow-up from Bertrand Hodee from Kepler Cheuvreux. Please go ahead.
Yes, one follow-up question, again, on carbon capture and on slide eighteen, where you show your current portfolio of 30 million tons per annum of CO2 capture, mainly Front-End Engineering Design studies. But can you disclose the overall amount of that 30 million MTPA under execution? I know it should be relatively small because it's mostly FEED studies, but if you can share this amount would be helpful. Thank you.
Maybe I can start, and Arnaud can complement. The 30 million ton per annum that we show here is the total amount for projects which are either on FEED stage, so, Front-End Engineering Design, or that have reached the project execution and are either, whatever the contractual mechanism, EPC, EPCM, you name it. The 30 million are not capturing or including the early-stage feasibility studies, Pre-FEED, all the opportunities that we can consider within Canopy or others. The 30 million then also cover both pre-combustion and post-combustion carbon capture scope. These are really for projects in execution, whether FEED or project.
Bertrand, this is, we've made announcements in the past related to carbon capture. We have many projects under execution and some prospects ongoing. On the prospect list, FEED stage, you're aware of bp Net Zero Teesside. You're aware of ExxonMobil Baytown Blue H2, the Baytown Blue H2 project, FEED stage. But we'll capture just on this one, the number was published, 7 million ton per annum. It's a big one. We have obviously the LNG projects that are under execution, let's also recall LaBarge, ExxonMobil La Barge, the carbon capture.
We've had a series of announcements in the past month, which, from FEED to EPC to EPCm are adding up to circa 30 million ton per annum. Like Bruno mentioned, excluding all the , more early engagements or earlier engagements, so the feasibility studies, et cetera. There's actually a lot more in the pipeline if we were to include those. It's definitely accelerating. There's definitely a lot of interest by many sorts of emitters and industries, because at the end of the day, how to abate? We'll have to abate.
We are alongside with them to, I would say, pave the road towards finding a solution for their projects and their ambition towards decarbonization to be successful. This is why I said the offering by Technip Energies goes beyond the pure delivery of a project. We are also here in the same way that we are here sometimes for customers to help with their, project financing and orchestrating the project financing. We are here to help our customers, define the master plan and get access to subsidies and the rest. It's part of a broader offering.
Thank you, Arnaud.
That concludes today's call. Please contact the IR team with any follow-up questions. Thank you, and goodbye.
Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.