Total's refinery and petrochemical platforms to be solar powered
French oil major Total, which is making a major push to develop its renewable energy portfolio, said it had bought 2.2 gigawatts (GW) of solar projects in Texas, adding to a rush of acquisitions elsewhere this year. It said it would cover all power consumption at its U.S. production sites, including its refining and petrochemical platforms, from its solar power and energy storage assets.
Europe's top energy companies have outlined plans to curb emissions and boost renewable energy output as they come under pressure from investors. Total is looking to wean itself off a reliance on oil and plans to market more electricity to clients.
It aims to add some 10 GW in renewable energy production capacity a year and to reach 35 GW by 2025.
Its latest deal in the U.S. also involves 600 megawatts (MW) of battery storage assets. Total said it was buying the portfolio from SunChase Power and private energy investment firm MAP RE/ES, but did not give financial details.
The group is now developing close to 4 GW of renewable energy capacity in the United States, it said, adding that construction of the first two Texan solar projects was expected to start later this year.
Total, which reports 2020 earnings next week, said in January it would pay $2.5 billion for a share in India's Adani Green Energy Limited (AGEL) and its solar power assets, its biggest investment yet in renewables.
See the press statement below:
Total adds 2.2 GW to its U.S. solar portfolio and covers all its power consumption in the country with green electricity
Total strengthens its presence in the U.S. market by acquiring a development pipeline of 2.2 GW of solar projects, and 600 MW of battery storage assets, all located in Texas. The projects are bought from SunChase Power, a renewable energy company focused on developing utility-scale energy projects, and MAP RE/ES, a private energy investment firm.
This announcement comes after recent news of a joint venture with 174 Power Global to develop 1.6 GW in the United States.
The pipeline consists of four large-scale solar projects, each with co-located battery energy storage systems (BESS), in industrial areas close to Houston that have high demand for electricity. Construction of the first two projects is expected to start later this year. All projects will come online between 2023 and 2024. The remuneration paid by Total to Sunchase and MAP RE/ES will be in staged payment as the projects advance.
Total will commit to a 1 GW corporate PPA sourced from this solar power and energy storage portfolio in order to cover all the electricity consumption of its operated industrial sites in the U.S., among which Port Arthur refining and petrochemicals platform and La Porte and Carville petrochemical sites.
“I am very pleased that Total is further contributing to the development of solar power in the U.S. We look forward to taking advantage of the many growth opportunities in the U.S. market to address the challenges of the energy transition, said Patrick Pouyanné, Chairman and CEO of Total. “With this latest acquisition, Total is now developing close to 4 GW of renewable power capacity in the U.S., thus contributing to our objective to reach close to 35 GW of renewable generation capacity by 2025. In addition, supplying green electricity to all our industrial activities in the United States is concrete proof of our ambition to achieve carbon neutrality by 2050.”
(Reporting by Benoit Van Overstraeten and Sarah White Editing by David Goodman and Alexander Smith
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