EUROPE - NEWS
From Net Zero Ambition to Total Strategy
Increasing energy while decreasing carbon
Growing energy demand and getting to Net Zero are the two global trends underpinning the Total Energy Outlook and thus the evolutions of the energy markets that Total integrates into its strategy .
Total ’ s strategy aims to transform itself into a broad energy company by profitably growing energy production from LNG and electricity , the two fastest growing energy markets , aiming to create long term value for its shareholders . In the next decade , Total ’ s energy production will grow by one third , roughly from 3 to 4 Mboe / d , half from LNG , half from electricity , mainly from renewables . The Group will progressively scale up profitable investments in renewables and electricity from 2 to 3 B $ per year representing more than 20 % of capital investments .
Total confirms its ambition to get to Net Zero by 2050 together with society for its global business ( Scope 1 + 2 + 3 ). On its way to carbon neutrality in Europe by 2050 , Total will reduce the Scope 3 emissions of its European customers by 30 %, in absolute value , by 2030 . This decrease in Europe allows Total to take the new commitment to reduce the absolute level of the worldwide Scope 3 emissions of its customers in 2030 compared to 2015 . In the next decade , oil products sales from Total will diminish by almost 30 % and Total ’ s sales mix will become 30 % oil products , 5 % biofuels , 50 % gases , 15 % electrons .
Increasing energy in gases
Total LNG sales will reach 50 Mt / y by 2025 and will double over 2020- 30 , creating value from scale , arbitrage and integration along the value chain . Cash-flow from integrated LNG business shall grow by 40 % to more than 4 B $ in 2025 at 50 $/ b . Decarbonizing natural gas with biogas and hydrogen as well as continuing to reduce methane emissions will contribute to Total ’ s climate ambition .
In electrons
Developing an integrated business model from production to sales through storage and trading , Total is targeting 50 TWh of net production and 80 TWh of sales to 9 million customers by 2025 . Building on the strong dynamic in 2020 , Total will grow as a world leader in renewables , raising its objective to 35 GW gross capacity in 2025 ( 70 % already in portfolio ), and has the ambition to add around 10 GW per year beyond , as it managed to do in 2020 .
Renewables and electricity are expected to deliver a predictable cash flow of more than 1.5 B $ per year by 2025 .
And privileging value over volume in oil
Total will focus on low cost oil projects , privileging value over volume and develop its portfolio of oil projects , all with profitability above 15 % at 50 $/ b , while ensuring consistency for Capex allocation with climate ambition .
Adapting energy sales to market evolution and engaging in the mobility revolution
As recently demonstrated with the Lindsey refinery divestment and the transformation of Grandpuits refinery into a zero oil platform , Total will adapt refining capacity and sales to demand , particularly in Europe . In the same time , it will further increase its biofuels productions and sales as demand for such renewable products is supported by policies aiming to get to Net Zero . Renewable diesel production is expected to reach more than 2 Mt / y by 2025 .
The Group is also committing more than 1 B $ over the next ten years to the e-mobility revolution by investing in manufacturing and EV charging with a target of 150,000 charge points by 2025 .
Resilience & Growth underpinning compelling investment case
In the current uncertain environment , Total remains focused on what it controls and specifically on the pillars that enable the Group to resist the crisis : HSE , delivery , costs and cash , with a view to continuously improve its organic breakeven below 25 $/ boe . Discipline and flexibility will be maintained on capital investments with 13-16 B $ over 2022-25 assuming an oil price between 50 and 60 $/ b . Considering the shortterm uncertainty and low price environment , capital investment for 2021 should be under 12 B $. Cost reduction efforts will be accelerated and increased to 2 B $ by 2023 .
Accelerating its shift toward low carbon businesses while growing its Upstream production by around 2 % per year between 2019 and 2025 , mainly over 2022-25 , the Group confirms a cash flow growth of 5 B $ by 2025 and a ROE greater than 10 % in a 50 $/ b environment .
Based on this outlook and given the resilience shown by the Group , the Board reaffirms its confidence in the Group ’ s fundamentals and confirms that the dividend is supported at 40 $/ b . Beyond serving the dividend , priority will be given to bringing gearing below 20 %. Furthermore , the Board is convinced that Total , with its strategy to become a multienergy company while offering a high yield dividend , is a compelling investment case supporting stock rerating .•
New Plastics Set Standards in Flame Retardancy and Electrical Insulation
On the occasion of this year ’ s International Trade Fair for Plastics
Processing ( Fakuma ), BASF is showcasing on its virtual platform two new high-performance plastics , Ultradur ® B 4440 and Ultramid ® B3U42G6 , adding innovations in the field of flame-retardant and highly insulating polymers to its existing portfolio .
The two new high-performance plastics offer extremely high tracking resistance and excellent fire behavior combined with economical processing options . These two new products successfully combine material innovation and sustainability by avoiding the use of antimony and halogen compounds .
“ The new Ultramid ® and Ultradur ® grades mean that we are able to offer our partners from key industries solutions for the increasing regulatory requirements in the areas of electrical systems and fire protection ,” says Dr . Michael Roth , Product Developer at BASF Performance Materials . “ The trend toward automation in production at our customers ’ plants also means that simple and stable manufacturing is essential . Ultradur ® B 4440 and Ultramid ® B3U42G6 make this possible ,” explains Roth .
Ultradur ® B 4440 and Ultramid ® B3U42G6 allow optimum insulation properties and flame retardancy for thin walls . Both high-performance plastics attain the highest CTI rating of 600 volts and the V0 classification according to UL94 as highly flame-retardant materials at wall thicknesses from 0.4 mm .
Both materials exhibit good suitability for injection molding . The unreinforced Ultradur ® B 4440 , which can also be processed by extrusion , lays the foundations for increasingly complex components , and helps designers meet growing demands . These two products open up the possibility for entirely new miniaturized solutions , e . g ., for connectors , terminal blocks , loose buffer tubes for fiber optical cables and filaments . Since Ultradur ® absorbs minimal moisture , it also provides high dimensional stability .
An additional benefit is the use of bright colors to differentiate . “ Orange is the new gray ,” the expert Dr . Michael Roth explains . But other colors are also possible . “ The color coding of individual parts makes for smoother and therefore faster production and assembly .” Precise laser marking is also possible through laser-sensitive coloring . The laser-transparent coloring options of Ultramid ® extends the range of applications into housing assemblies .
“ Besides the unreinforced Ultradur ® B 4440 the currently developed glass fiber-reinforced Ultradur ® products combine the high dimensional stability of polyester with distinctive high rigidity and toughness ,” explains product developer Dr . Michael Roth . “ This means that we can offer forward-looking materials for the electrical industry , construction and mobility sectors , combining technical progress with sustainability .” •
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