French oil major Total S.A. is considering putting fuel oil sales to power market to an end as it is seeking reducing carbon footprints and to be more focused on the growth of its business of renewable energy, said the Chief Executive of the energy giant.
Fuel oil is major catalyst of producing most of the oil products that are carbon intensive which is the main source of making power and used as a marine fuel.
The company wanted to stop the sale of fuel oil for power generation, told Patrick Pouyanne, Chief Executive of Total in an interview last week. Being the largest oil refining company, in last year, Total’s share of producing and trading oil products remained 4% of the all those products consumed globally.
As the shipping companies are shifting towards the more of clean energy sources, Total as well as many of the other refiners came upgrading their plants in recent years to reduce fuel oil outputs.
Total is currently working with the daily processing capacity of 2 million barrels and its oil and gas trading business is among one of the world’s largest businesses.
In 2019, refiner’s sales of petroleum products including chemicals and refined products reached to 4.1 mbpd. And according to company’s statistics, last year about 5% of company’s refined products output was comprise of fuel oil to be used by both shipping and power generation companies. But the total revenue generated by the company from trading fuel oil was not known from that data.
Total is eyeing on 2030 as year of achieving goals of reducing carbon intensity levels of its products by 15% from that of 2015. For the reason, company is considering lowering the sales of such products as a quicker way and is also focusing on increasing sales of its renewable power and cleaner fuels.