French energy giant lauds China's green efforts

China's innovation capabilities in green technology are key to achieving an affordable, low-carbon economy and green energy transition, said Patrick Pouyanne, chairman and CEO of TotalEnergies, adding that the US retreat from globalization presents a "huge opportunity "for strengthened energy cooperation between China and Europe.

"As a European company, I want to emphasize that while the United States may be retreating from the wave of globalization, climate change and energy transition have actually brought enormous opportunities for cooperation between China and Europe," said Pouyanne.

"We will jointly contribute to the success of the energy transition process and continue to collaborate with China, and TotalEnergies is fully committed to supporting China's balanced and strategic energy transition," he said.

Pouyanne lauded China's commitment to both providing energy and decarbonizing its economy, emphasizing the crucial role of affordable energy transition.

"TotalEnergies has a long-standing and stable relationship with China, with a history of over 40 years and extensive influence in numerous activities, while we also collaborate with Chinese energy companies and overseas subcontractors, utilizing Chinese products and solutions. China has excellent innovation capabilities in green technology, achieving a low-cost, low-carbon economy, which is crucial for customers. We need an affordable transition," Pouyanne said.

He added that the company's commitment to supplying LNG to meet China's growing gas demand has driven coal-to-gas switching and helps address peak power needs.

TotalEnergies announced in November the signing of a sales agreement with China Petroleum and Chemical Corp for the delivery of 2 million metric tons of LNG per year for 15 years, starting in 2028.

This came after the French energy provider announced a five-year extension of its sales and purchase agreement (SPA) with China National Offshore Oil Corp (CNOOC) in September, on the delivery of 1.25 million tons of LNG per year to China until 2034, as the energy giant has been strengthening its long-term positions in the growing Chinese market, which is also the world's largest LNG importing country.

In China, natural gas serves as a crucial transition energy resource, mitigating the intermittency of renewable energy sources and reducing emissions when used as a substitute for coal in electricity generation.

In addition to fossil fuels, TotalEnergies also sees significant opportunities in China's renewable energy sector as well. Pouyanne outlined joint ventures with Chinese partners across the solar photovoltaic supply chain and agreements for offshore wind and onshore solar projects.

He reiterated the goal of providing renewable energy at competitive prices to ensure a successful energy transition. The company aims for renewables and low-carbon electricity to constitute 50 percent of its energy production and sales mix by 2050.

Pouyanne also pointed to a sustainable aviation fuel (SAF) agreement in China to produce 230,000 tons of SAF annually from local waste, showcasing collaboration in circular economy solutions.

Pang Guanglian, vice-secretary general of the China Petroleum and Chemical Industry Federation, said global production of sustainable aviation fuel stands at 3 million tons, with China already contributing over 1.1 million tons to this total.

"Looking ahead to 2030, global SAF demand is projected to surge beyond 18 million tons, and China is poised to account for at least half of this burgeoning market," he said.

"With the European Union already mandating a 2 percent SAF blending ratio and China soon to unveil its own ambitious policy, the stage is set for exponential growth in the sector."