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PARIS–(BUSINESS WIRE)– Regulatory News:
Due to the upcoming COP27, the multi-energy Company TotalEnergies (Paris: TTE) (LSE: TTE) (NYSE: TTE) aims to improve the understanding of the global energy system and thus contribute to the Energy Transition debate with its annual publication . , the TotalEnergies Energy Outlook 2022 (the document is available at this link).
TotalEnergies Energy Outlook 2022
Published for the fourth consecutive year, TotalEnergies Energy Outlook 2022 re-examines the two core scenarios – Momentum and Rupture – explained by TotalEnergies to achieve the energy transition in 2050, taking into account the current energy markets and social trends. It also consolidates the new Net Zero pledges made since the presentation of last year’s Energy Outlook in September 2021, thus strengthening global climate ambition.
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TotalEnergies’ Momentum scenario is forward looking method based on existing decarbonization strategies in Net Zero 2050 countries, as well as NDCs (Nationally Determined Contributions) in other countries. In addition to major economies such as the US, European countries, Japan and South Korea, Momentum includes this year new Net Zero 2050 pledges from Australia, Singapore, Taiwan and the UAE. The increasing number of countries with commitments to carbon neutrality by 2050 after the COP26 in Glasgow is very good news for the climate but still results in a temperature increase of 2.1-2.3 ° by 2100 in our models (using IPCC curves AR6 P66).
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TotalEnergies’ breakage a scenario created to meet the goals of the Paris Agreement by 2050, with a temperature increase of well below 2°C (P66) compared to pre-industrial levels. This includes the dissemination of large-scale decarbonization drivers in all developing economies, the construction of a new low-carbon energy system on a global scale while gradually transitioning from the existing already. This will not happen without the rich countries supporting the developing ones by promoting a fair energy transition (through investments, technology transfer, training…) with funding at least at the level of predicted in the Paris agreement (100 B $ / year from 2020).
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By expanding the combination of levers already used in the Rupture scenario to all countries around the world, TotalEnergies Energy Outlook 2022 provides Brokenness+ scenario, which allows limiting the temperature increase to 1,5°C (P50). Oil demand in 2050 is comparable to the IEA NZE but the trajectory to reach this target is different as new oil projects are still needed until mid-2030 to meet demand and prevent price increases.
“The current disruptions in the energy markets reinforce the need for dialogue on a global basis about the energy transition, involving the global participation of all actors in society” stated Patrick Pouyanné, Chairman and CEO of TotalEnergies. “With this document, in line with our climate ambition to reach Net Zero by 2050 and our continuous transformation into a multi-energy company that puts sustainable development goals at the core of our strategy, TotalEnergies seeks to share knowledge of the global energy system, to contribute to decisions that will improve the energy transition and help tackle climate change.
Helle Kristoffersen, President Strategy & Sustainability and member of the Executive Committee, will present this document today as an introduction to Investors Days. This webcast will be streamed live and available for replay at the following link.
Below are some of the key messages from TotalEnergies Energy Outlook 2022:
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The short-term trajectory of global energy demand is not going in the right direction (taking off coal use) due to economic recovery post Covid in 2021 and the current market collapse. More efforts are needed to decarbonize while ensuring energy security and affordability.
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The current high energy prices put energy efficiency at the top of the energy policy agenda in many OECD countries. The current crisis should be an opportunity to increase and anchor energy saving and efficiency measures because they are the fundamental basis of any scenario to reach the objectives of the Paris agreement.
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In the OECD, the electrification of end-user demand thanks to clean power is a structural evolution that helps reduce emissions and increase energy efficiency. The biggest impact is seen in road transport (Light Vehicles, 2-3 wheelers, Heavy Duty Vehicles) and industry. Strong public policies such as the ban on the sale of new internal combustion vehicles in Europe and California are essential to encourage demand evolutions. Heavy investment in electrical grids at the state and interstate levels are fundamental requirements for the success of this electrification.
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In non-OECD countries, especially in Africa, the transition from traditional biomass to modern energy is at the core of increasing energy efficiency while providing affordable energy access, better living standards and economic growth to a growing population.
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Renewables, which are the main driver of the decarbonization of the power mix, are experiencing higher and faster penetration as energy security becomes a key concern in many countries.
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With the increased penetration of renewables around the world, natural gas continues to play an important role in the energy transition to ensure stable power, in addition to pushing coal in all sectors of final demand. Gas becomes greener over time and its growth is accompanied by carbon capture and methane emission control solutions.
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H2 and Sustainable Liquid Fuels based on e-fuels are promising drivers of decarbonization, but they will not increase before 2030; Meanwhile, renewable diesel and biogas are expected to take over. If at scale, hydrogen and hydrogen-based fuels will increase demand for clean power and carbon abated gas by more than 10% by 2050.
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The transition will require a step up in spending to build a new low carbon energy system and maintain the current one for a while. The present decade is decisive. Investment in low carbon power should double by 2030 to reach 1.5 T$/year. Meanwhile, investment in new oil and gas developments is needed until the mid-2030s to satisfy customer demand, even in a below 2°C scenario.
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Substantial investment in clean technology R&D is needed to develop the technologies that will power this new energy system. TotalEnergies is committed to this transition and has allocated more than 60% of its R&D Budget to clean technology.
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About TotalEnergies
TotalEnergies is a global multi-energy company that produces and sells energies: oil and biofuels, natural gas and green gas, renewables and electricity. Our more than 100,000 employees are committed to making energy cheaper, cleaner, more reliable and accessible to as many people as possible. Active in more than 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to people’s well-being.
Twitter: @TotalEnergies LinkedIn: TotalEnergies Facebook: Total Energy Instagram: Total Energy
Cautionary Note
The terms “TotalEnergies”, “TotalEnergies company” or “Company” in this document are used to designate TotalEnergies SE and the combined entities directly or indirectly controlled by TotalEnergies SE. Likewise, the words “we”, “us” and “our” may also be used to refer to these entities or their employees. Entities in which TotalEnergies SE directly or indirectly owns a shareholding are separate legal entities. This document may contain forward-looking information and statements based on extensive economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove inaccurate in the future and are subject to many risk factors. Neither TotalEnergies SE nor any of its subsidiaries assumes any obligation to publicly update any forward-looking information or statement, intent or trend contained in this document as a result of new information, upcoming events or the like. Information about risk factors, which may affect the financial results or activities of TotalEnergies is provided in the latest Universal Registration Document, the French-language version of which was filed by TotalEnergies SE with the French securities regulator Autorité des Marchés Financiers (AMF), and on Form 20-F filed with the United States Securities and Exchange Commission (SEC).
See the original version on businesswire.com: https://www.businesswire.com/news/home/20220927005717/en/
TotalEnergies Contacts
Media Relations: +33 (0)1 47 44 46 99 l [email protected] l @TotalEnergiesPR
Investor Relations: +33 (0)1 47 44 46 46 l [email protected]
Source: TotalEnergies SE
