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Total to hike annual power, renewables spend by 50% by 2030 in bid to diversify

French oil major Total SE will increase its annual investments in renewable energy and power by 50%, from $2 billion to $3 billion, by 2030 as it continues to move away from its traditional oil business and accelerate the pace of its transition into a broader energy company, executives said during a Sept. 30 strategy presentation.

In the next decade, Total's energy production is projected to grow by one-third, from roughly 3 million barrels of oil equivalent per day to about 4 million boe/d, with half coming from LNG and half from electricity, mainly from renewables, the company said.

CEO Patrick Pouyanné indicated previously that the oil price crash in the spring only strengthened Total's resolve that it must embrace low-carbon electricity and carbon neutrality solutions. In May, Total unveiled a plan to cut its emissions to net-zero for its European businesses by 2050.

To achieve the plan, Total said it will target net-zero emissions across its worldwide operations, which covers its Scope 1 and Scope 2 emissions, by 2050 or sooner. Total hopes to have net-zero emissions for all of its production and energy products used by Europe-based customers by 2050 or sooner, which covers Scope 3 emissions as well.

As part of its ongoing transition into lower-carbon energy, Total announced Sept. 29 that it is acquiring London's largest electric vehicle charge point network. This follows Total's acquisition of a 51% stake in the developing Seagreen offshore wind farm offshore Scotland in June.

Investors and customers have increased pressure on the oil majors to reduce emissions and take more serious action on climate change. Many companies, particularly those based in Europe, have responded by developing plans to diversify and decarbonize their portfolios via natural gas, electricity and renewables to meet self-imposed emissions reductions ambitions.

Total intends to have 35 GW in gross renewable generation gross capacity by 2025, up from a previous target of 25 GW.

In May, the company announced deeper capital spending cuts this year of 25%, compared with a 20% cut announced in March, saying net investments would be under $14 billion following the oil market fallout caused by demand destruction from the COVID-19 pandemic.