Engie reveal energy transition leadership ambitions

Engie reveal energy transition leadership ambitions

Engie (formerly GDF-Suez) intend to become the leader in global energy transition. The French giant has implemented a 3-year plan to redesign its business, and this plan includes the acquisition of OpTerra, a specialist in energy services; Another stage of the plan comprises the sale of 13 GW of power generation capacity in the United States, India and Indonesia.

Gérard Mestrallet, CEO of Engie and Isabelle Kocher, Managing Director in charge of Operations, revealed the company’s intentions, stating: “These transactions illustrate perfectly the implementation of our transformation plan to reduce the carbon footprint Engie and exposure to changes in commodity prices and to focus on two priorities: to develop a low-energy mix in CO2 emissions and create innovative and integrated solutions for our customers. Through the acquisition of OpTerra, Engie becomes the third player in the energy services sector in the United States. Disposals in the United States, India and Indonesia allow us to realize a third of our 3-year plan of asset rotation (15 billion euros) and 20% reduction in our installed capacity of electricity generation from coal. ”

Engie therefore wants to invest in the US market for the provision of energy services, and the group says that with these two operations, its consolidated net debt will be reduced to 4.1 billion euros.

Through the announcement of its annual results on the 25th of February, Engie expressed its ambition to focus on three aspects:

  • low CO2 emitting activities;
  • integrated solutions;
  • unexposed activities to commodity prices.

This focus is organized around a plan over 3 years, also centered on three programs:

  • 22 billion investment, including 7 maintenance;
  • 15 billion Portfolio rotation;
  • 1 billion performance gains with the program “Lean 2018.”

 

The group, which had a turnover of 69.9 billion euros, is therefore in full transformation, and riding the wave of the energy transition with ambition after the company’s name change a few months ago.