Eneos Total Partners To Setup Renewable Energy Business

Recently, Japanese integrated energy company ENEOS and France's Total Energy jointly announced that the two parties will establish a joint venture in Asia. Direct external sales of electricity from renewable energy sources under corporate power purchase agreements.

In the next five years, 2 million kilowatts of electricity will be developed, equivalent to the power supply of two nuclear power plants. The joint venture parties will each hold 50% of the shares. The new company name, company location and capital are to be announced. The company will be established in June, and will then build megawatt-scale solar and other renewable energy power plants in nine countries including Japan, India, and Thailand. The electricity produced is sold to local factories and the commercial sector.

An enterprise power purchase agreement is a long-term contract for the sale of electricity directly signed by a power company and a consumer. Since consumers cannot be sure whether the electricity they buy comes from fossil fuels or renewable energy, they need to purchase electricity only from renewable energy sources through the above-mentioned long-term contracts. Global demand for electricity from renewable sources will continue to grow, driven by environmental, social and corporate governance (ESG) trends.

Both companies rely on fossil fuels such as oil as their main business, but investment in renewable energy is also increasing. Vincent Stockat, head of Total's energy business, said the company will focus more on business in this key region of Asia. The new company will capitalize on this business opportunity based on ENEOS's Asian customers, combined with technologies developed by Total Energy, to meet the growing market demand for renewable energy.