TotalEnergies approves Kazakh renewable project despite disputes

French oil major TotalEnergies approved a $1.2billion investment in a one gigawatt windfarm in Kazakhstan on Friday, pushing ahead despite ongoing court disputes in the country. TotalEnergies is contesting a $4.6billion environmental fine as well as a multi-billion dollar?cost dispute related to the giant Kashagan oilfield offshore in the Caspian Sea that it operates in a consortium. TotalEnergies, which is a partner in the Kashagan consortium, has decided to move forward despite a dispute with Shell. Shell has stopped further investment into Kazakhstan.

Mirny will include a battery system of 600 megawatt-hours. TotalEnergies holds a 60% stake in the project, while KazMunayGas (owned by Kazakh state) and Samruk Energy will each hold 20%. TotalEnergies will fold the project into a 50/50 Asian Renewables Partnership it is forming with Emirati company Masdar. This partnership will allow TotalEnergies to share investment costs. Around 75% of this project is externally financed, and is expected to reach its full capacity by 2029. TotalEnergies plans to expand its renewables portfolio of 31 GW, which is already the largest among oil majors. It aims to reach 100 GW gross installed capacity by 2030. Part of this growth will be from the supply of renewable systems to oil-and-gas clients. This includes a flagship multienergy?project combining seawater?desalination,?solar power, and flared gas recovery in Iraq.

In a press release, Olivier Jouny said, "We are pleased to launch one the largest renewable energy initiatives in Kazakhstan to date. This will help the country reach its goal of increasing the share of renewables to 15% of electricity generation by 2030, in collaboration with the Kazakhstani Authorities." Mateusz Rabiega reports from Gdansk. (Editing by Milla Nissi-Prussak, Mark Potter and Mark Nissi)

(source: Reuters)