TotalEnergies launches France’s largest biogas plant – 12-01-2023, 09:00

(AOF) – TotalEnergies has commissioned its eighteenth biogas plant in France, with a maximum capacity of 160 gigawatt-hours (GWh), which will be the largest in the country. Called BioBéarn and located in Mourenx in the Pyrénées-Atlantiques department, this new organic waste-powered facility has begun pumping its first cubic meters of biomethane, a gas that is both renewable, carbon-free and locally produced.

It will produce 69 GWh in 2023, then gradually increase its capacity to meet the rapidly growing demand for biogas.

“Demonstrating TotalEnergies’ desire to promote a circular economy, this project enables the conversion of 220,000 tons of organic waste to 200,000 tons of digestate, natural fertilizer and 160 GWh of biomethane per year, the average annual equivalent. consumption of 32,000 people,” stressed the oil group.

More precisely, BioBéarn allows the Lacq basin, historically focused on gas activities, to implement a local and sustainable development strategy, this new facility allows to avoid 32,000 tons of CO2 emissions per year.

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Key points

– Integrated energy group, world number 3 in solar energy with 3rd world oil company, 2nd gas company and Sun Power;

– USD 141 billion activity is organized in 4 branches: 45% marketing and services (distribution networks, etc.), 40% processing and chemicals, 11% renewable energy, gas and electricity, then exploration and production;

– An economic model of becoming a multi-energy group producing oil and LNG (liquefied natural gas), renewable energy, electricity, hydrogen and biomass within ten years;

– Open capital (6.4% owned by employees), 12-member Board of Directors is also chaired by Chief Executive Officer Patrick Pouyanne;

– On a solid balance sheet, the debt ratio of 4% at the end of September is well below the target of 20%.

Challenges

– 2020-2030 strategy + energy, – emissions:

– 30% increase in energy production, 50% renewable electricity, 50% LNG, the share of oil decreases from 55% to 30%,

– change in distribution of sales – 30% oil products, 50% gas, 15% electricity and 5% biomass and hydrogen;

– discipline in investments – 13-15 billion dollars per year during 2022-2025, 50% of which is allocated to renewable energy and electricity, and 50% to natural gas;

– Innovation strategy led by One Tech, $850 million allocated for 18 R&D centers:

– 3 centers: industry, development and support,

– 5 programs: production, CO2 and sustainability, upstream, downstream and operational efficiency of polymers, fuels and lubricants,

– Digital factory that will save 1.5 billion dollars by 2025;

– Environmental Strategy 2050:

– carbon neutrality for the group’s operations and products sold in Europe, a 60% or more reduction in the carbon intensity of products used outside Europe;

– 4 axes: growth in gas value chains (natural, biogas and hydrogen), low carbon electricity (annual budget 1.5-2 billion dollars), low harmful oil, biofuels, activities contributing to carbon neutrality (natural wells), forests and etc.),

– solar and renewable energy: production capacity 25 Gw by 2025,

– Carbon fund invested in the amount of USD 400 million until 2025;

– A capacity portfolio of 35 GW by 2025, including +20 GW secured by long-term purchase agreements, in renewable energy and electricity;

– Acceleration of energy transition with equity investments in 2 Qatari and Indian projects (solar energy, LNG and hydrogen) and 5th American Clearway in the field of renewable energy…;

– Industrial excellence in oil production with a break-even point of -20 $/b with numerous projects ongoing (Nigeria) or launched (discovery in Angola, Argentina and Cyprus).

Challenges

– Sensitivity to the price of a barrel of oil and the dollar, an increase of 10 dollars per barrel affects the operating profit by 2.7 billion dollars; A $10 drop affected him by $100 million;

– geopolitical risks in Africa (30% of the group’s production);

– Russia-Ukraine war: provision of 10.7 billion euros for investments in Russia (Arctic LNG project, Novatek, Yamal and Terneftegaz);

– From 16 GW for 2022 due to higher selling prices, renewables and special investments of $3.5 after a 69% increase in net income and free cash flow of $24.1 billion at the end of September 2022 prospects for higher hydrocarbon production with much electricity. billion (a quarter of total investments), downstream contribution of 6 billion euros to free cash flow (petrochemicals, biofuels and electric mobility);

– 3rd interim dividend for 2022, EUR 0.69 paid in April, exceptional dividend of EUR 1 paid in December and maintenance of share buyback of USD 2 billion in Q3, 40% of cash flow generated by hydrocarbon prices constitutes above 60 dollars per barrel.

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Biogas to green activities

It is obtained through the decomposition of waste, it falls into the category of green energy. This is part of the strategy of many countries, especially Europe, to reduce their dependence on hydrocarbon imports. Oil groups have strong ambitions in the field, as two recent deals have revealed. The British company BP bought the American company Archaea Energy for 4.1 billion dollars. Later, the Anglo-Dutch Shell announced that it was buying Denmark’s Natural Energy for $2 billion. These transactions indicate high valuation levels, underscoring the strong potential of the sector. TotalEnergies bought a stake in American Clean Energy Fuels Corp in 2018, already owning 19%. It recently joined forces with Veolia to extract biomethane from waste treatment facilities.