Energy Transition: 100 GW of RE for Total in 2030

TotalEnergies_EnergyNews

The energy transition is a major issue for the oil industry, which has been particularly weakened by the Covid-19 crisis. In this context, the French company Total will invest in renewable energy for a gross capacity of 100 GW by 2030.

However, the CEO, Patrick Pouyanné, considers that the change of model will have to be done gradually. Hydrocarbons will continue to play an important role in the company’s activities.

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Energy transition: relying on renewable energies and hydrogen

Relying on hydrogen

The energy transition is a core concern for Total. The company aims to be carbon neutral by 2050. To do this, it plans to invest massively to reach 100 GW of renewable energy (RE) by 2030 in some 30 countries.

To meet its commitments, hydrogen seems to be a promising solution. The company has even partnered with Engie to develop France’s largest green hydrogen production infrastructure: the Masshylia project. 5 tons of green hydrogen will be produced daily.

Its CEO, Patrick Pouyanné has proposed to change the name of the company to Total Energy. This shows its willingness to diversify its supply of non-fossil fuels.

Read on energynews.com: Carbon Neutrality: Shell Sets 2050 as Goal

A risk of a renewable energy bubble?

But Total’ s boss fears the formation of a speculative bubble in renewable energies. Not all experts agree on this point. According to Benjamin Louvet, commodities manager at OFI Asset Management, for example, the danger has been averted for at least 5-10 years thanks to high government subsidies.

One thing is certain: the share of renewable energy will occupy a considerable place in the world’s energy mix. The International Energy Agency (IEA) is already forecasting a 50% increase in energy production from RE by 2025 compared to 2020.

A gradual transition: relying on fossil fuels

Hydrocarbons still play an important role

Patrick Pouyanné warns that the energy transition will not happen overnight:

“It will take time because renewable energy is expensive to implement.

In the meantime, Total will continue to rely on the development of its hydrocarbon activities, particularly in natural gas. The company will increase its daily oil and gas production from 3 to 4 million tons of oil equivalent by 2030. Any decline until this milestone year seems unlikely.

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“Demialising the oil sector

The entire oil sector wants to put an end to the image of being a polluter. Large corporations are often singled out because of the high carbon impact of their activities. And even if this is true, they all consider that without their participation the energy transition will not become “a reality”.

As a result, Total intends to change its energy model. It still has a long way to go because of the persistent dependence of its revenues on fossil fuel exploitation.

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