TotalEnergies: Electrification, the Centre of Transformation
Dependence on fossil fuels is set to make the planet an undesirable place to live, which puts carbon reduction on the social agenda as much as the environmental one.
As we’ve seen in many conversations over the past few years, electrification is the strategy that we hope will keep climate change to a minimum.
Electrification is a primary part of TotalEnergies sustainability strategy, which seeks to reduce dependence on harmful fuels and instead leverage the power of clean energy to generate power moving forward. With such a large emphasis on green energy across the globe, TotalEnergies expands its efforts across the entire value chain.
Investing in renewables and diverting from fossil fuels
Despite the energy transition being well underway, the world continues to reply on fossil fuels to meet 81% of its energy needs. With this in mind, TotalEnergies sees the drastic actions it needs to take in order to reduce global consumption. Put simply, TotalEnergies has set out to maintain its supply of energy the world needs now, replace coal with natural gas, and in the long term sustainably accelerate the transition to low carbon energy solutions.
Becoming a multi-energy company
Believing that the energy transition depends on first the electrification of energy, TotalEnergies is expanding its entire electric value chain.
The company’s goal is to build an integrated power business with return on average capital employed exceeding 10%, and also become one of the world’s top five providers of solar and wind energy by the year 2030. This will require significant growth of its power generation capabilities, increasing its power output beyond 100 terawatt-hours TWh per year.
Adding to its multi-solution approach to sustainable energy, TotalEnergies will spend more time and money developing low-carbon fuels, such as biofuel, biogas, clean hydrogen and synthetic fuels, to actively reduce emissions from areas that have been governed by oil and gas for decades. Expansion into these new markets will be supported by its focus on circular resource management and deploying less mature technologies at its sites to test the business viability.
Harnessing natural gas as a transition energy, Total Energies will continue to expand in the liquefied natural gas (LNG) value chain. It will also be highly selective and focus its oil investments on projects with a low break even point and low emissions. This will enable the company to take full advantage of global oil demand, while remaining profitable and resilient as electrification declines the fuel.
“The immediate focus must be on building the energy system of tomorrow while continuing to supply the energy the world needs today,” said Patrick Pouyanné, Chairman and CEO of TotalEnergies.
As the energy markets become increasingly interconnected and interdependent, TotalEnergies multi-solution strategy - with electrification at the core and low-emissions fuels to support - and solid financial base will help the company to stay ahead and successfully navigate the transition long-term.
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