European oil and gas companies double planned expenditure on low-carbon energy
Planned annual investment by leading European oil and gas companies on low-carbon energy has doubled since 2019 – from $2 billion to $4 billion each, analysts Wood MacKenzie reported.

The average share of this investment in terms of capital expenditure rose from 10 % to 25 %.

    One of the reasons for the increase is the broader pool of European companies that intend to invest in the development of the renewable and low-carbon sectors.

    In 2019, such plans were announced by BP, Shell, Equinor, Eni and Total (now known as TotalEnergies). Joining them now is Repsol., whose investment programme over the period 2021-2025 features a 35 % share of expenditure on low-carbon sources.

    The share assigned by leading U.S. companies Chevron and ExxonMobil to low-carbon energy will reach 10% over the next few years.

    Solar and wind power are the key targets of such investment.

   TotalEnergies intends, by 2030, to boost tenfold the installed capacity of its own wind farms and solar panels to a total of 50 GW. That will bring the company close to the level of leading European operators of renewable resources – Enel and Iberdrola – their installed capacity of renewable generation will rise by 2030 to 120 GW and 95 GW, respectively.

   To pursue its goal, TotalEnergies is to build renewables power stations rapidly in 17 countries. The same range of countries in terms of projects is to be undertaken by Equinor (14 countries) and BP (15 countries).

    Another form of investment will be in construction of charging stations for electric vehicles. Shell plans to raise its numbers from 60,000 currently to 500,000 by 2025.

    Several companies intend to invest in the development of pipelines to transport carbon dioxide and in capacity for hydrogen production. ExxonMobil, along with nine other companies, is to build a hub in Houston for CO2 capture – to be equipped with a pumping system for carbon dioxide into natural reservoirs located at a depth of several thousand metres below the seabed and isolated by rock formations.

    The conclusions produced by Wood Mackenzie coincide to a great extent with calculations by the International Energy Agency (IEA), which said world-wide investment in renewables in the period 2019-2021 rose by 9 % (to $367 billion) while the figure for energy storage with the help of storage devices soared by 77 % (to $7.1 billion) and that for production of low-carbon fuel by 62 % (to $14.6 billion)

 A decline of 20 % — to $600 million — was recorded in investment over the same period in CO2 capture, storage and transport technologies. But when compared to 2020, ($170 million), this amounted to a more than threefold rise.


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December 2021