TotalEnergies’ actions are guided by the belief that everyone has the right to access energy – reliable and affordable energy that is a source of social and economic development. This was announced in an interview with Dir.bg and 3eNews by Yves Liu Stanf, manager of TotalEnergies EP Bulgaria. According to him, the energy transition will take time (at least two decades) and a lot of investment. While building or modifying energy infrastructures for the future, especially those related to renewable sources, TotalEnergies believes that gas can help the transition with a rapid positive impact on CO2 emissions at a reasonable cost. Yves Lew Stunf also told what the company’s intentions are for the development of wind and solar power plants in our country. He also participated in the international conference “The Green Deal – Innovation, Investment and a Just Transition”which was organized by Dir.bg and 3eNews.
Mr. Yves Lew Stunff, since one year the large company Total has been called Total Energies, which emphasizes the ambition for an energy transition and achieving zero emissions in 2050. How do you develop this idea within the framework of your presence on the Bulgarian market?
Today the world needs more energy, but the urgency of climate change demands less emissions. This necessitates a rapid change in the business model and strategies of market players across the globe. TotalEnergies has the ambition to be one of the world leaders in the energy transition and is therefore transforming itself into a multi-energy company.
To achieve this ambition, the strategy relies first on the growth of gas activities (mainly liquefied natural gas (LNG)) from now until 2030. Gas is indeed a transition fuel that can easily replace coal for electricity generation in many countries around the world. with an immediate lower carbon footprint.
Second, along with increasing gas production and supply, TotalEnergies is investing around $3 billion annually in renewable electricity, aiming to be among the top 5 leading companies by 2030 with a portfolio of 100 GW of installed capacity in solar and wind electricity.
In addition to the growth of gas and renewable energy sources, serious efforts are also being made to rapidly develop industrial activities related to new molecules (such as hydrogen, biofuels, biogas and e-fuels/e-gas) and energy storage capacities.
In parallel, we are developing carbon capture and storage (CCS) activities with the ambition to capture and store 10 Mt CO2/year in 2030 and 100 Mt CO2/year in 2050.
TotalEnergies has been present in Bulgaria since 2012 through its exploration and production subsidiary with activities in the deep waters of the Black Sea and we are currently evaluating the possibility of drilling a new exploratory well targeting a prospective gas area.
TotalEnergies also has a stake in the country’s renewable energy production through its indirect participation in two solar power plants. We want to be proactive in the development of renewable energy sources (wind and solar) in Bulgaria. For this purpose, in 2021 the team in Sofia was joined by Renewable Explorer, a specialist whose mission is to research and offer opportunities for the development of new energies.
Apart from these activities, TotalEnergies is also active in Bulgaria in the motor oil business through its marketing and services subsidiary.
TotalEnergies’ subsidiaries develop large-scale renewable energy projects around the world. What are the projects you are involved in on the Bulgarian market and what are the opportunities you see?
Thanks to numerous investments over the past 4 years, TotalEnergies now operates 11 GW of renewable electricity worldwide. We will operate around 35 GW by 2025 (most projects are already in the development or construction phase) and aim to reach around 100 GW in 2030. With these installed capacities, TotalEnergies will be in the top 5 world leaders in renewable electricity sources. The main growth pillars are onshore solar installations and onshore or offshore wind installations.
In Bulgaria, TotalEnergies already has a small footprint through its shareholding in the company Novenergia, which operates two photovoltaic plants with a total capacity of about 20 MW. TotalEnergies has also recently started discussions with local project developers and is looking at the support opportunities for onshore solar and wind projects that the various European plans would provide.
We are also monitoring the development of offshore wind projects in Bulgaria, but until a regulatory framework is in place, we will not take any action.
This year, the Bulgarian government extended for another two years the exploration permit for the “Khan Asparuh” block in the Black Sea. What are the results of your work so far? Is there any news that gives hope of oil or natural gas from this field?
Since 2012, many efforts and resources have been invested in this large and challenging deep offshore area, the Khan Asparuh Block. Between 2016 and 2018, we drilled three exploratory wells. Several seismic campaigns were also made to image the underground space. So far we have no commercial discovery. Despite these results we have continued exploration as our geologists still believe in the potential of the block.
Analysis of data from our latest seismic campaign in 2020 shows the potential presence of prospective biogenic gas areas similar to the large Sakarya gas discovery in Turkey that was made in 2020. We are currently evaluating the possibility of drilling a 4th well, target gas, in 2023
How do you see the presence of TotalEnergies on the Bulgarian market in view of the progress of the energy transition?
TotalEnergies’ actions are guided by the belief that everyone has the right to access energy – reliable and affordable energy that is a source of social and economic development.
The energy transition will take time (at least two decades) and a lot of investment. While building or modifying energy infrastructures for the future, especially those related to renewable sources, TotalEnergies believes that gas can help the transition with a rapid positive impact on CO2 emissions at a reasonable cost. Gas does have an emissions footprint that is twice that of coal for the same amount of electricity produced.
We believe that the discovery of gas in the Black Sea can contribute positively both to energy security and to the smooth transition to the goal of net zero emissions by 2050 for Bulgaria and neighboring countries. Such a discovery could allow an affordable transition from coal to gas, while bringing in revenue for the state that could be used to develop renewables.
In the short term, TotalEnergies, as a global LNG supplier, is keen to play a role in supporting Bulgaria in meeting the challenge of gas shortages in the coming years and is already engaged in negotiations with Bulgargaz.
In parallel, as we have already mentioned, we will study the possibilities for the development of RES in Bulgaria.
The company has vast experience worldwide in oil and gas exploration and production projects, in the construction of renewable energy projects. From the perspective of this accumulated experience, what would you recommend in terms of the investment environment?
Hydrocarbon exploration and production are long-term projects with high risks in the exploration phase and high investment in the development phase. We prefer to develop such projects in countries with a stable regulatory and fiscal framework.
In order to proceed with new projects in Bulgaria with hydrocarbons or renewable energy, TotalEnergies expects clarity regarding the regulatory framework, as well as predictability and stability in the tax and fee regime. It is also a matter of attractiveness for the country. A well-defined roadmap for the country’s energy transition, including a roadmap for infrastructure development, would help prioritize and guide investments and create confidence in foreign investors.
The world has found itself in an unusual situation, moving from a period of COVID-19 to accelerated economic development and almost simultaneously to a situation of serious military conflict between Russia and Ukraine. Do you think this could be reflected in a delay in the European Green Deal?
This certainly makes the context even more challenging and complex. In the short term, the disruption of gas supplies from Russia has changed the prospects for the transition from coal to gas in Europe. We see that many countries have decided to restart or extend the life of their coal plants, which does not go in the direction set by the Green Deal, but is driven by the need to maintain energy security.
Will this accelerate the development of renewable energy sources? History will tell.
What is the approach for mobilizing an accelerated green energy transition in Europe and Bulgaria in your opinion?
All stakeholders (governments, local authorities, NGOs, private investors, financial institutions, companies, consumers) must talk to each other and build an acceptable future together. Therefore, there is a need for everyone to realize the urgency, educate themselves on the subject, be open to others and work together.
This is especially true for a company like TotalEnergies in terms of Scope 3 emissions (emissions generated by our customers). Achieving our Scope 3 ambition will require real collaboration with society. All stakeholders will have to accept being challenged in their beliefs, but also leave room for compromise. If no one compromises, the system will be slow or speed up only in some regions – which will not make it possible to achieve the global goals.
Last but not least, TotalEnergies is committed to the UN Sustainable Development Goals in four dimensions: Climate and Sustainable Energy, Human Well-Being, Caring for the Environment and Creating Shared Value. TotalEnergies creates and drives positive change for communities in host territories, including Bulgaria, and more broadly for its employees, suppliers, customers, partners, countries and civil society. We believe that this will help the fair energy transition in Europe and in Bulgaria.
* TotalEnergies content
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