French Firm TotalEnergies Expects RE Expansion in Future

French company TotalEnergies said on Monday that it expected a big rise in renewable-based electricity, solar and wind forms of energy, partly due to a general increase in electrification in the industrial and business world.

TotalEnergies added it expected that oil in general would plateau before 2030, while natural gas would continue to play a role as a transition fuel.

Producers and traders had said at an industry conference on Monday that global oil demand was expected to reach pre-pandemic levels by early next year as the economy recovers, although spare refining capacity could weigh on the outlook.

Total has decided to reduce its direct emissions to net-zero by 2050. That will mean a reduction of 40% from 46 Metric tons of carbon dioxide equivalent (MtCO2e) to 25-30 MtCO2e by 2030 and zero by 2050.

The company plans to reach this goal by altering the energy mix it sells its customers. In 2019 Total’s energy sales comprised 40% natural gas, 55% oils products and 5% electrons. By 2030, the company plans to increase natural gas sales to 50%, reduce oil products sales to 35% and increase electrons sales to 15%.

Total has invested billions of dollars in Indian renewable energy and gas sectors. In January this year, the company acquired a 20 per cent stake in Adani Green Energy in a $2.5 billion deal that deepens the French energy major’s renewables push and its relationship with Indian tycoon Gautam Adani’s empire.

The investment was at a nearly 40 per cent discount based on Adani Green’s Rs 1.5 trillion ($20 billion) market capitalisation. It also granted the French group a 50 per cent share in a 2.35-gigawatt portfolio of solar assets and gave it a seat on the company’s board.

“Our entry into AGEL is a major milestone in our strategy in the renewable energy business in India put in place by both parties,” CEO Patrick Pouyanne had said then.

Total and Adani struck a partnership deal back in 2018 in the liquefied natural gas (LNG) sector.