Aberdeen - France’s Total is considering stopping sales of fuel oil to power markets as the energy giant seeks to reduce its carbon footprint and grow its renewable power business, its chief executive told Reuters.
Fuel oil is one of the most carbon intensive refined oil products, used mainly for power generation and as a marine fuel.
“We want to stop selling fuel oil for making power,” Total Chief Executive Patrick Pouyanne told Reuters in an interview on Feb. 6. Total, Europe’s largest refiner, produced and traded over 4% of all oil products consumed globally last year.
Many refiners, including Total, have in recent years upgraded plants in order to cut their fuel oil output as the shipping sector shifted to cleaner fuel.
Total has a global processing capacity of around 2 million barrels per day, and one of the world’s largest oil and gas trading businesses.
Its petroleum product sales, which include refined products and chemicals, reached 4.1 million barrels per day in 2019.
The previous year, fuel oil for both power and shipping accounted for around 5% of its total refined products output, according to the company’s data.
It was unclear how much revenue fuel oil trading generates for Total.