Carbon goals bring new boon to energy firms

China's carbon neutrality plan is significant for building a green future, and will lay a solid foundation for the success of multinational energy companies in the country, a top executive said.

"As China intensifies its exploration in energy transition, our cooperation with Chinese partners continues to deepen, expanding from the local market to the global market and extending from traditional industries to cover new energy fields," said TotalEnergies China Country Chair Yu Yongjian.

Amid China's efforts to transition toward cleaner energy sources, the company has been exploring and promoting cooperation with the country in various clean energy businesses and technologies, which include green electricity, biofuel hydrogen energy, and carbon capture, utilization and storage (CCUS).It also eyes further expansion locally.

China has begun to turn policies into actions, formulating dynamic and pragmatic road maps, and TotalEnergies is committed to deepening its partnerships with Chinese companies to achieve the common goal of net-zero emissions, Yu said.

As part of the company's efforts to increase its footprint to cover more of the renewables business in China, it has already developed more than 500 megawatts of rooftop solar projects in the country, through its joint venture TotalEnergies Envision Energy Services %26Solutions Co, contributing to China's renewable energy capacity.

The company is also trying to engage in China's offshore wind power market, taking advantage of its experience in offshore and deep-sea operations to harness the vast potential of wind power to meet China's increasing demand for cleaner and sustainable energy, it said.

Yu said the company is looking forward to cooperating with Chinese partners to further advance the development of China's offshore wind power industry.

Multinational energy firms' burgeoning expansion within China's renewable energy sector is poised to bolster their position as key catalysts in the nation's eco-friendly evolution, said Luo Zuoxian, head of intelligence and research at the Sinopec Economics and Development Research Institute.

These companies' strategic expansion further underscores the global energy sector's acknowledgment of the imperative for collective action in combating climate change, Luo said.

The company is also actively pursuing projects in onshore renewables, e-mobility, biofuels as well as hydrogen energy to support China's progressive shift toward net-zero.

In March, the company signed an agreement with China Petroleum %26Chemical Corp, or Sinopec, to jointly build a production line with an annual capacity of 230,000 metric tons of sustainable aviation fuel (SAF) to help the nation's aviation industry reduce its carbon footprint.

The planned unit will produce SAF and will process local waste or residues from the circular economy, including cooking oils and animal fats. TotalEnergies has set itself a target of 1.5 million tons of annual SAF production by 2030.

Ma Yongsheng, chairman of Sinopec, said the collaboration with TotalEnergies is in line with Sinopec's strategy for the development of low-carbon solutions for China and the world.

As the world's third-largest LNG player, TotalEnergies has also supplied more than 5 million tons per annum of liquefied natural gas to the country in 2023. The company will further develop its LNG business in China and contribute to China's energy transition.

According to Yu, energy storage is an indispensable technology for developing renewable energy. The company has expanded its business into various industries and plays an increasingly important role in the country.

"As one of the first international energy companies to enter China's offshore oil and gas exploration and refining business following the country's reform and opening-up policy, we have been present in China for over 40 years, actively engaged in the entire energy industry chain," said Yu.

"We are committed to continuing sharing experiences, technologies and expertise with Chinese partners to establish mutually beneficial cooperation as we jointly develop energy businesses at home and abroad."