TotalEnergies, ENEOS Partner to Develop 2 GW Solar Capacity for C&I Entities in Asia
Total has committed to a target of 100 GW of renewable energy capacity
TotalEnergies, a global multinational integrated oil and gas firm, has entered into a 50-50 partnership with Japanese petroleum company ENEOS to develop 2 GW of decentralized onsite solar capacity for commercial and industrial (C&I) consumers in Asia in the next five years.
TotalEnergies will leverage its expertise in the B2B market to strengthen its global footprint. With expertise in renewables, ENEOS aims to lower the costs of decentralized solutions offered to C&I customers in Japan. The two oil conglomerates have signed the agreement to boost their competitive services in the region further.
A multi-energy company, TotalEnergies has a 2 GW solar distributed generation portfolio in different stages of development. In July 2021, it announced a strategic collaboration with e-commerce giant Amazon to supply 100% renewable energy for Amazon’s operations. The companies have signed a power purchase agreement (PPA) based on which TotalEnergies would supply 474 MW of renewable energy for Amazon’s operations in the United States and Europe.
Under its ENEOS Group Long-Term Vision to 2040, the Japan-based oil company has placed next-generation energy supply and community services, including distributed power sources, as one of its growth businesses.
Referring to the merger, the Senior Vice President for Renewables in TotalEnergies, Vincent Stoquart, said, “With this partnership, TotalEnergies further demonstrates its commitment to Asia, a key continent, for reaching our target of 100 GW of renewable generation capacity by 2030.”
TotalEnergies has been making significant acquisitions to empower its distributed generation business. The global energy conglomerate acquired SunPower’s commercial and industrial solutions business for $250 million, including $60 million of the earn-out sum. The acquisition will help TotalEnergies develop its distributed business globally, accounting for around 500 MW capacity.
Last October, ENEOS announced that its consolidated subsidiary ENEOS Corporation would acquire a 100% stake in the Japan Renewable Energy Corporation (JRE) for $1.76 billion. JRE has maintained its stronghold in the renewable power generation sector across the entire value chain, including renewable project development to operation and maintenance of energy projects. It is also engaged in offshore wind project development, including monitoring wind conditions and developing construction plans.