TotalEnergies plans to spend about 30% of its capital expenditure (capex) on boosting its integrated power business, Patrick Pouyanne, the chief executive of the French supermajor, said at an energy conference on Monday.
The company looks to increase the share of the power business in its portfolio to 20% by the end of the decade, the executive said at the ongoing Energy Asia conference in Kuala Lumpur, Malaysia.
When Shell, BP, and Equinor backtracked on their pivot to renewables and reduced investments in low-carbon energy solutions, TotalEnergies didn’t have to. It has been the outlier in Europe’s Big Oil group, as it has continued growing its LNG business as the world’s second-largest LNG trader after Shell. TotalEnergies have been also boosting lower-cost oil and gas production, alongside increasing renewable energy capacity and power generation through acquisitions and joint ventures globally.
TotalEnergies supports the global push to tripling renewable energy capacity by 2030 and the global target is at the heart of TotalEnergies’ road map to investments and strategy by the end of the decade.
The French group invested a total of $17.8 billion in 2024, including $4.8 billion in low-carbon energy – mainly in power. This year, TotalEnergies plans capex at between $17 billion and $17.5 billion, including $4.5 billion for low carbon energies, mostly Integrated Power.
TotalEnergies has also maintained an annual capital expenditure target of $16-18 billion per year over the next 5 years.
Per Pouyanne’s most recent statement, 30% of the planned $16-18 billion annual capex would go to the integrated power business.
By the end of 2024, TotalEnergies’ gross renewable electricity generation installed capacity had reached 26 gigawatts (GW), the company says. TotalEnergies aims to continue expanding the renewable power generation business, to reach 35 GW in 2025 and more than 100 TWh of net electricity production by 2030.
By Tsvetana Paraskova for Oilprice.com
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