October 1, 2020 Read More →

Oil giant Total ups renewable energy installation goal to 35GW by 2025

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Oil supermajor Total raised its renewable energy target to 35GW by 2025, as it pursues an ambition to become a global top-five player in the green power sector that could see it adding 10GW of new projects annually, the company said on Wednesday.

The new 2025 goal for gross capacity developed adds 10GW to the previous 25GW ambition, which CEO Patrick Pouyanné said had already been underwritten in Total’s wind and solar pipeline after a spree of acquisitions in 2020. “We have raised the bar,” said the oil chief, adding that Total aims to be producing about 30TWh net of renewable electricity by the middle of the decade.

Total expects to be devoting 20% of its Capex, or about $3bn of the total, to renewable power by the end of the decade, up from $2bn for the next five years.

Pouyanné said the increased target reflects Total’s ambition to be one of the five biggest producers of renewable power globally. “We are among the top five in oil and gas [and want] to reach the same level in renewables,” he said, adding that Total could continue to add 10GW gross of new project capacity annually as it has done in 2020.

It expects its 2025 developed portfolio to include 15GW of gross development in Europe, 6GW in the Americas, split evenly between North and South, 6GW in India and 3GW in China.

Pouyanné said renewables projects in sectors such as solar and offshore wind have the ability to add “long term value” to Total and insisted they could deliver attractive returns when compared to the rest of the company’s oil and gas-focused operations.

[Andrew Lee]

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