Commits to net zero carbon by 2045
Multinational power company ENGIE announced today a major repositioning of the company as it navigates the transition to a low carbon economy, with plans including billions of dollars in disposals of non-core assets, and a significant step-up in renewable energy investments. The company also announced a commitment to achieve net zero carbon across all scopes by 2045.
ENGIE CEO Catherine MacGregor said:
“A simpler ENGIE will be uniquely positioned to drive an affordable, reliable, and sustainable energy transition. With a stronger focus on renewable power, distributed energy infrastructure and renewable gases, ENGIE is building today the low carbon energy system of tomorrow.”
ENGIE’s announcement comes as companies, industries and governments prepare for a major shift in the global energy profile towards clean and renewable energy sources. In a report issued earlier today by the International Energy Agency (IEA), outlining the pathway required to reach the global goal of net zero emissions by 2050, agency said that the goal would need an immediate end to new fossil fuel supply projects, and a significant surge in investment in renewable energy capacity.
Between 2021 and 2023, ENGIE is expecting €9-10 billion disposals, and aims to invest between €15-16 billion of growth Capex. Disposals will involve strategic reviews of non-core activities, further country exits, alignment with Net Zero Carbon commitment and rebalancing of exposure from French gas networks. Growth capex plans are expected to be split 40-45% towards Renewables, 30-35% Networks and 15-20% Energy Solutions, with respective CO2 budgets.
The company aims to significantly ramp its renewable energy capacity, currently at 31 GW, with annual additions of 3-4 GW through 2025, ramping up to 6 GW per year in subsequent years. ENGIE anticipates reaching 80 GW of renewables capacity by 2030, with projects including onshore wind, offshore wind and solar across Europe, North America, and Latin America.
Hydrogen also forms a significant focus for the company’s repositioning efforts, with ENGIE looking to develop green hydrogen capacity of 4 GW by 2030, with plans for 700 km dedicated hydrogen networks and 1 TWh of storage capacity, along with more than 100 refueling stations.
Jean-Pierre Clamadieu, Chairman of the Board of Directors, said:
“I am delighted to note that ENGIE is today engaged in a major transformation with clear objectives and teams mobilized to make the Group a leader in the energy transition to meet the expectations of its stakeholders.”