For several years now, the major industrial energy group Engie has been engaged in a profound transformation and aims to be a leader in the energy transition.
In this perspective, the group announced on Tuesday its new 2021-2023 strategic roadmap, with a focus on renewable energies.
NGIE’s new strategy: investment in renewables.
The ENGIE group wants to refocus on renewable energies, an area in which it intends to accelerate its development with new investments.
Thus, over the period 2021-2023, the French energy giant is targeting growth investments of 15 to 16 billion euros, of which nearly 45% for renewable energy.
The ENGIE group aims to move from an average annual growth in renewables of 3 GW currently “to 4 GW between 2022 and 2025, then to 6 GW between 2026 and 2030”, as indicated in a group press release. ENGIE should thus have a total installed capacity of 50 GW by 2025 and 80 GW by 2030, against 31 GW today.
Finally, in order to achieve its goal of carbon neutrality by 2045, the group has also confirmed its definitive phase-out of coal in Europe by 2025 and worldwide by 2027, as well as a gradual phase-out of nuclear power in Belgium, where it operates seven reactors, beginning in 2022.
As a result, ENGIE plans to reposition itself as an industrial player in numerous offshore and floating wind farm projects, solar power plants and also hydrogen projects, such as the green hydrogen plant project in Australia. The French group is counting on the deployment of green hydrogen to complete its business portfolio.
ENGIE: construction of a green hydrogen hub in Australia
Australia is heading towards the fastest energy transition in the world through the implementation of new renewable energy sources. Indeed, it aims to reach a 94% renewable energy production mix by 2040, thanks in particular to the development of hydrogen.
To achieve this, the executive has entrusted the task to the French energy group: Engie which plays a central role in this energy transition.
Indeed, on May 05, 2021, as part of its funding round for renewable hydrogen deployment, the Australian Renewable Energy Agency (ARENA) released $42.5 million for a 10 MW electrolyser project to produce renewable hydrogen co-lead by Engie and Yara Pilbara Fertilizers.
The project involves the construction of a green hydrogen plant with a 10 MW electrolyzer to support renewable ammonia production at Yara’s existing facility in Karratha. The electrolysis process will be powered by a solar photovoltaic array linked to a battery storage system.
Planned for 2023, this plant will be one of the first industrial-scale renewable hydrogen production operations in the world.
The first phase of the project will produce up to 625 tons of renewable hydrogen and 3700 tons of renewable ammonia per year. This initial phase is essential for the facility to become the Pilbara Hydrogen Hub.
ENGIE and NEONEN : Australian Hydrogen Center (AHC)
Under a new initiative supported by the Australian government, millions of homes in Australia will be powered by green hydrogen instead of natural gas.
The two French energy groups ENGIE and NEOEN as a member of the Australian Hydrogen Center (AHC) will participate in this project by assisting the states of Victoria and South Australia to create a pathway to a “100% transition” by replacing natural gas with hydrogen in the gas distribution networks of selected cities.
By the end of 2022, AHC plans to inject up to 10% renewable hydrogen into natural gas distribution systems. Ultimately, the AHC aims to “develop a pathway to transition to 100% hydrogen networks” across the country.
All these new projects for the French energy giant consolidate its new strategy of withdrawing from coal and nuclear power and switching to renewable energy. Contact us to learn more and discuss your business development plans.
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