TotalEnergies is aiming to trim its renewables spending but double power generation from green sources by 2030, according to a strategy update given to investors in New York today.
The French oil and as major is plans to spend $3-4bn in capex annually from its integrated power unit, compared to the up to $5bn it set aside last year.
It is aiming for 100GW of capacity from the unit, 70% of which would come from renewables.
The company currently has around 35GW of clean power online, according to a presentation given to investors.
Last year, it said it would deliver 100GW of renewables by 2030.
TotalEnergies said it will prioritise investments in key “deregulated” markets in the US, Europe and Brazil, while it will “organically” develop its renewables pipeline.
The company also plans to “rationalise” capital allocation by “monetising renewable assets in non-core markets”.
In total, TotalEnergies will aim to generate between 100 and 120TWh of electricity from integrated power by 2030, an increase of around 20% per year.
“The Integrated Power segment will be free cash-flow positive by 2028 and achieve a ROACE of 12% by 2030,” the company said.
“TotalEnergies’ profitable diversification through the electricity value chain is positively differentiating versus peers and creates value for shareholders by contributing to dividend growth regardless of Oil & Gas cycles and thus, enhancing the company’s resilience.”