(AOF) – TotalEnergies announces that it has passed the milestone of 500 MW of solar production capacity on the sites of its B2B customers for self-consumption. More than 300 sites of its industrial and commercial customers in Asia, the Middle East, Europe and the United States are now equipped with solar panels. TotalEnergies sells the green electricity thus produced to its B2B customers through long-term power purchase agreements (PPAs). The Company develops, finances, builds and operates panels installed on rooftops, shadehouses or vacant industrial land.
These solutions allow companies to produce green electricity directly on their sites, and to make significant savings on their bills, while greatly reducing their carbon footprint.
“We are delighted to have passed the milestone of 500 MW of solar capacity developed at our customers’ sites around the world. Thanks to our expertise in this segment, we are able to provide concrete and competitive solutions to our customers. B2B to help them achieve their sustainable development goals and reduce the cost of their energy. Present in 30 countries around the world in this market, we aim to continue our rapid growth and reach a portfolio of 1 GW in service. ‘by 2023,” said Matthieu Langeron, VP Solar Distributed Generation at TotalEnergies.
As part of its objective of carbon neutrality by 2050, TotalEnergies is developing a portfolio of assets in electricity and renewable energies. At the end of June 2022, the gross installed capacity of renewable electricity production of TotalEnergies amounted to approximately 12 GW. TotalEnergies intends to continue the development of this activity to reach 35 GW of gross renewable electricity production and storage capacity by 2025, then 100 GW by 2030; the objective being thus to be among the top five world producers of electricity from wind or solar energy.
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Key points
– Integrated group around energy, 3
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world oil company, 2nd gas company;
– Activity of $141 billion organized into 4 branches: 45% for marketing & services (distribution networks, etc.), 40% in refining & chemicals, 11% in renewables, gas and electricity, then exploration- production ;
– Economic model of transformation in ten years into a multi-energy group, producer of oil & LNG (liquefied natural gas), renewable energies & electricity and hydrogen & biomass;
– Open capital (6.4% held by employees), the 12-member Board of Directors being chaired by Patrick Pouyanné, also Chief Executive Officer;
– Solid balance sheet with $104 billion in equity and $17 billion in free cash flow and a debt ratio of 9.8%, well below the 20% target.
Challenges
– 2020-2030 strategy to respond to the challenge of energy transition, more energy, – emissions: 30% growth in energy production, 50% powered by renewable electricity, 50% by LNG , the share of oil dropping from 55 to 30%, change in the breakdown of sales – 30% oil products, 50% gas, 15% electricity and 5% biomass and hydrogen / discipline in investments – $13 to $15 billion per year over 2022-2025, of which 50% allocated to new energies – renewables and electricity – and 50% to natural gas;
– Innovation strategy led by One Tech, endowed with 850 M$ for 18 R&D centers: 3 hubs: industrial, development and support / 5 programs: production, CO2 and sustainability, operational efficiency of upstream, downstream & polymers, fuel and lubricants / recycling and biofuels / a digital factory to generate $1.5 billion in savings by 2025;
– Environmental strategy: by 2050, carbon neutrality for group operations, neutrality of products used by customers in Europe, reduction of 60% or more in the carbon intensity of products used by customers outside Europe;
– 4 axes: growth in the gas value chains (natural, biogas and hydrogen), in low-carbon electricity (annual envelope of $1.5 to 2 billion), in low breakeven oil and in biofuels and, finally, in activities contributing to carbon neutrality (natural wells, forests, etc.) / solar and renewables: production capacity of 25 Gw by 2025 / carbon fund endowed with $400 million to be invested by 2025;
– In renewables & electricity, capacity portfolio of 35 GW by 2025, including +20 GW secured by long-term purchase contracts;
– Acceleration of the energy transition with equity investments in 2 Qatari and Indian projects (LNG and hydrogen) and in Clearway, 5
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American Renewable Energy;
– Industrial excellence in oil production with a breakeven at -$20/bbl.
Challenges
– Sensitivity to the price of a barrel of oil and to the dollar, an increase of $10 per barrel having an impact on operating profit of $2.7 billion; a decline of $10 affecting it by $100 million;
– Exposure to geopolitical risks in Africa (30% of the group’s production);
– Impact of the Russia-Ukraine war: stoppage of capital contributions to new projects and the Arctic project, stoppage of oil and diesel purchases, maintenance of stakes in Novatek (19.4%), Yamal (20%), Arctic LNG (10%) and Terneftegaz (49%) and maintenance of LNG supply from Yamal;
– After a virtual tripling of the net result in 1
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semester, 2022 outlook for higher hydrocarbon production with high selling prices, renewable and electricity capacities above 16 GW thanks to dedicated investments of $3.5 billion (a quarter of total investments) , a downstream contribution (petrochemicals, biofuels and electric mobility) of €6 billion to free cash flow;
– Payment of 2 interim dividends for 2022 of €0.69 and maintenance of share buybacks, of $2 billion on 3
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quarter, triggered according to the formula 40% of the cash flow generated by hydrocarbon prices above $60 per barrel.
Growing global demand
The IEA (International Energy Agency) estimates that global demand should stand at 99.4 Mb/d (million barrels per day) for 2022, a level slightly revised upwards due to stronger growth. stronger than expected in March and April. However, this remains 1 Mb/d below 2019 levels. From 2023 the IEA forecasts that global oil demand should exceed pre-Covid pandemic levels, driven by Chinese demand. The latter has been strongly affected by the serious disruptions linked to Covid-19 this year. Next year, the rebound in Chinese demand will more than offset a slowdown in OECD countries. In the medium term, the strong recovery in air traffic is supporting oil demand, with an increasingly evident dynamic in air travel in Europe and North America, underlines the IEA.