Total (NYSE: TOT) has announced the acquisition of Fonroche Biogaz, a company that designs, builds and operates anaerobic digestion units in France.
The company is currently the French market leader in the production of renewable gas with more than ten percent of market share, Total highlighted. The business, which has close to 500 gigawatt-hours (GWh) of installed capacity, has a portfolio of seven units in operation and a pipeline of four imminent projects, Total noted.
Total stated that, with this acquisition, it becomes a major player in renewable gas in France and Europe and significantly strengthens its presence in the sector, already effective through its affiliates Méthanergy, PitPoint and Clean Energy.
“This acquisition is consistent with our strategy and our climate ambition to get to Net Zero by 2050,” Philippe Sauquet, the president of gas, renewables and power at Total, said in a company statement.
“We believe that renewable gas has a key role to play in the energy transition as it contributes to reducing the carbon intensity of natural gas – and we support the imposition of renewable gas incorporation in natural gas networks,” he added.
“In 2020, we stated our intention to contribute to the development of this sector, which we expect to become more competitive in the next few years. We intend to produce 1.5 terawatt-hours (TWh) of biomethane a year by 2025 and Fonroche Biogas is therefore the cornerstone of our development in this market,” Sauquet went on to say.
Yann Maus, the president and founder of Fonroche Group, said, “we are proud to join the Total Group, which has shown strong vision and ambition by launching a massive and sustainable investment program in renewable energies”.
“Our integrated business model combined with Total's strength and global reach gives us a positive and sustainable outlook for the future,” Maus added.
“Their excellent track record in the solar sector – both in terms of the duration of their investments and their strong growth – has confirmed our decision to combine the expertise of Fonroche Biogaz teams with this French energy major,” Maus continued.
Total announces its ambition to get to net-zero emissions by 2050 back in May last year. In a company statement at the time, Total said this ambition was supported by a strategy to develop Total as a broad-energy company, with oil and gas, low-carbon electricity and carbon-neutrality solutions as integrated parts of its business. The company stated at the time that it firmly believes this low-carbon strategy provides a competitive advantage which creates long term value for its shareholders.