07/11/2022

AT OUR SITES IN EUROPEObjective: Net Zero Emissions

In line with the European Union’s carbon neutrality goal, TotalEnergies
is implementing an ambitious project for its sites in Europe. The aim of this project,
codenamed “GoGreen”, is to meet the power needs of all TotalEnergies sites
with electricity from renewable sources.

Read on for a detailed explanation... with illustrations!

Toward Decarbonization

For a number of years now, TotalEnergies has been taking action to shrink its carbon footprint. The result of these efforts has been a reduction in CO₂ emissions year after year, from 45 million tons in 2015 to 37 million in 2021. And by 2030, TotalEnergies will have reduced the Scope 1 and 2 emissions associated with its operations by a massive 40%.

More Energy,
Less Carbon!

Today, the goal is clear. Alongside the rest of society, TotalEnergies is aiming for net zero emissions worldwide by 2050. Its strategy for achieving this goal is to become a multi-energy company, with an energy mix that notably includes green electricity. But reducing TotalEnergies’ Scope 1 and 2 emissions while also meeting growing energy demand is an enormous challenge. That’s why TotalEnergies intends to use green electricity from solar farm projects in Spain to cover all the power needs of its industrial, commercial and administrative sites in Europe.

The 21st century will be
the century of electricity!

Patrick Pouyanné, CEO of TotalEnergies, says: 'The 21st century will be the century of energy!'

The annual electricity consumption of TotalEnergies sites based in Europe – primarily in France, Belgium, Germany and the Netherlands – is currently 6 terawatt hours (TWh). How can such energy needs be met using electricity from renewable sources?

Decarbonizing the electricity used by TotalEnergies sites in Europe will be achieved thanks to renewable energies. And it will make TotalEnergies a key player in the energy transition!

SCOPE 1, 2 OR 3: WHAT DO THEY MEAN?

When calculating the greenhouse gas emissions associated with a company’s operations, these emissions are categorized into three distinct groups or “scopes”.

Scope 1 corresponds to the company’s
direct emissions, such as the methane
or CO₂ emitted during its operations.

Scope 2 corresponds to the indirect emissions
associated with the company’s energy
use. The production of electricity, for example,
generates greenhouse gas emissions.

Scope 3 corresponds to the company’s
other indirect emissions, such as those
associated with the use of its products
by end consumers.

A TotalEnergies refinery is bodered by a ring road with many cars.

Codename: GoGreen

To explain the origins of the GoGreen project, we need to take you back in time... to the creation of the CO₂ Fighters Squad, a cross-disciplinary team of CO₂ experts.

TotalEnergies employees are standing, smiling. It is the CO2 Fighters Squad.

Their Role?

Speed up sites’ carbon
reduction projects

A member of the CO2 Fighters is inspecting a machine at a refinery. He is taking notes.

Foster synergies
among teams

The same character, in a security uniform, is shaking hands with a man wearing a suit and a tie.

And devise innovative
low-carbon solutions

A woman and a man are looking at a digital board with a tree, a solar panel and a wind turbine.

And we’ve got
plenty of ideas!

Thanks to the CO₂ Fighters Squad and the enthusiasm of all TotalEnergies teams, more than 500 potential carbon reduction projects have been identified. Ideas include installing renewable energy farms at production sites, supplying plants with biofuels, using hybrid vessels for shipping, and equipping refineries with carbon capture and storage technologies

The CO₂ Fighters Squad has therefore facilitated the implementation of the GoGreen project by bringing together the expertise required for its deployment, notably from Renewables, Power Trading and Refining & Chemicals, the main “customer” for these low-carbon solutions in Europe.

What Exactly Does
GoGreen Involve?

In 2020, TotalEnergies acquired a portfolio comprising more than 5 gigawatts (GW) of solar projects in Spain. At the same time, it signed the world’s largest corporate PPA¹ to date, enabling it to use part of the green energy produced in Spain to cover the electricity needs of its sites in Europe.

This massive project came into being thanks to TotalEnergies’ Trading teams, which are responsible for capitalizing on their experience of the electricity markets to ensure a connection between the location where renewable energy is produced and the sites that use it.

(1) PPA: Power Purchase Agreement

It’s true that Spain is
one of the sunniest
countries in Europe.

An engineer says: « Spain is one of the sunniest countries in Europe, after all. »

So, what exactly
is a PPA?

A power purchase agreement (PPA) is an agreement to purchase green electricity. It was designed to boost investment in the renewable energy sector.

TotalEnergies uses three different types of PPAs:

Traditional “physical” PPAs with electricity delivery for self-consumption.
“Physical” off-site PPAs for power that’s generated remotely. This is the type of agreement TotalEnergies is using to decarbonize its sites in Europe.
“Financial” or “virtual” PPAs without physical electricity delivery.

But how is that possible, given the lack of cross-border
infrastructure for power transmission and the issue
of energy loss during transmission?

It’s easy!

Traders purchase a share
of the output from our solar
farms in Spain, corresponding
to around 6 TWh per year
of electricity.

They then sell this share on
the Spanish market and continue to
supply our assets with electricity from
wholesale markets, in accordance
with their location.

The same employee is presenting a pie chart divided in two parts: 2/3 and 1/3.

An official document is decorated with a leaf-shaped medal. Its title is 'Garantee of origin'.

For every megawatt-hour (MWh) of electricity produced by our solar farms in Spain, our traders will also receive, in their role as buyers, a Guarantee of Origin.

A Guarantee of Origin is an electronic certificate attesting that a given MWh of electricity was generated from renewable energy sources.

... while the corresponding Guarantee of Origin
is logged in a register kept by the Spanish
authorities...

...and credited to our traders’ account.

Our traders can then transfer the Guarantee
of Origin to the register in a country where
TotalEnergies sites are located.

...and credited to our traders’ account. Our traders can then transfer the Guarantee of Origin to the register in a country where TotalEnergies sites are located.

A spanish family is watching the TV. Outside, the city shines in the night.

The electricity is fed into Spain’s power grid...

La garantie d'origine s'affiche et clignote

In a official Spanish office, the Garantee of origin is displayed on a computeur screen.

A TotalEnergies trader is receiving the Garantee of origin on his tablet.

Basically, it’s not the electricity that
travels but the Guarantee of Origin!

For each MWh of electricity used by one of our
sites, a Guarantee of Origin is canceled in the
country’s register.

The system ensures full traceability, thereby avoiding
the risk of double counting green electricity.

The TotalEnergies Tower lights up at dusk, among the other Parisian towers.

Basically, it’s not the electricity that
travels but the Guarantee of Origin!

For each MWh of electricity used by one of our
sites, a Guarantee of Origin is canceled in the
country’s register.

The system ensures full traceability, thereby avoiding
the risk of double counting green electricity.

By fostering investment in renewables, TotalEnergies’ ultimate goal is to reduce
its Scope 1 and 2 emissions in Europe by around 2 million tons per year.

The icing on the cake? GoGreen also
ensures the profitable development
of solar power projects over
the long term.

The TotalEnergies trader is smiling, arms crossed.

The TotalEnergies trader is smiling, arms crossed. 2

Hey!
Who turned off
the lights?

The TotalEnergies Tower is plunged into darkness. Someone says: 'Well, who turned off the light?'

From Sunny Spain to Our Refineries in Europe...
And Beyond!

This first step toward decarbonizing its assets in Europe has also fueled TotalEnergies’ ambitions internationally.

In early 2021, TotalEnergies announced the acquisition of a portfolio of 2.2 GW of solar projects and 600 MW of battery storage assets in Texas.

Based on the Spanish model, a new corporate PPA was also signed: the 1 GW sourced from this solar power and energy storage portfolio will cover all the electricity needs of TotalEnergies’ operated industrial sites in the United States, including the Port Arthur refining and petrochemicals platform and the La Porte and Carville petrochemical plants.

In Texas, TotalEnergies engineers are building a solar farm, installing panels.

And the GoGreen project still offers plenty of promise for the future. Its key strength is its reproducibility, both internally and for potential customers. TotalEnergies has positioned itself as the first customer for these solutions in order to encourage other companies to invest in renewable energy projects.

By adding GoGreen to its catalogue of large-scale low-carbon solutions, TotalEnergies has reaffirmed its ambition of achieving net zero by 2050 – not only for its own operations worldwide (Scope 1 and 2) but also for the energy products used by its customers (Scope 3).

TotalEnergies is committed to being a key player in the energy transition.

More and more companies
are turning to green energy.
By offering to share our expertise
and the benefits of our integrated
model, we can support them
through their energy transition
process.