ESP32-S3-RLCD-4.2 with SEN66

I’m considering this combination to display SEN66 reading on the display and integration with HA. Looks like this display supported by ESPhome and it has I2C bus exposed to connect SEN66. So it should work. Right? Or I missing something? Thank you.

It should work.
If you are looking for to power it from battery, be aware that SEN has mechanical fan inside and is not “low-power” sensor.

yes, thank you. One more question, in application like this, is it better to use esphome and program esp32 to display sensors readings directly on display or send information for display from HA? (my guess is option 1 to reduce wifi load, Processors can manage either way)

Of course directly. Esphome device works independently even if you unplug your HA and router from the wall…

You could also do both. Such is the power you hold in your hands.