TotalEnergies Takes Action to Give Access to Clean Cooking to 100 Million People in Africa and India

Rhea-AI Summary

TotalEnergies aims to provide clean cooking access to 100 million people in Africa and India by 2030.

The company announced a $400 million investment in liquefied petroleum gas (LPG) for this purpose, during the Clean Cooking Summit organized by the International Energy Agency (IEA).

They will also introduce digital pay-as-you-cook technologies to make clean cooking more affordable.

Currently, over 2.3 billion people lack access to clean cooking solutions, relying on traditional stoves that contribute to health and environmental issues.

Cleaner cooking fuels like LPG can improve air quality, reduce CO2 emissions, and save time spent on collecting wood.

Patrick Pouyanné, CEO of TotalEnergies, emphasized the initiative's alignment with the company's sustainability goals and its potential positive impact on health, gender equality, and the environment.

TotalEnergies already serves over 50 million people in Africa and Asia with LPG.

Positive

• TotalEnergies plans to invest $400 million in developing LPG for cooking.
• The initiative targets providing clean cooking access to 100 million people in Africa and India by 2030.
• Introduction of digital pay-as-you-cook technologies to make clean cooking more affordable.
• Cleaner cooking solutions expected to improve health by reducing household air pollution.
• Potential CO2 emission savings of up to 1.5 billion tons by 2030.
• Clean cooking can reduce gender inequality by enabling better access to education, employment, and entrepreneurship for women.
• Current distribution network already benefits over 50 million people in Africa and Asia.

Negative

• The initiative requires a significant investment of $400 million, posing financial risk if returns are not as expected.
• Relying on LPG, which is still a fossil fuel, may not fully align with long-term renewable energy goals.
• Digital pay-as-you-cook technology rollout might face challenges in areas with digital infrastructure.
• Uncertainty around the actual adoption rate of clean cooking solutions in targeted regions.

Insights

Financial Analyst

TotalEnergies' substantial investment of $400 million in clean cooking solutions for Africa and India carries significant financial and strategic implications. Firstly, this ambitious initiative highlights the company's commitment to environmental, social and governance (ESG) principles, which can enhance its reputation among socially conscious investors. Additionally, the development of digital pay-as-you-cook technologies offers the potential for steady revenue streams and customer retention by lowering upfront costs for consumers, thus broadening the company's market base.

Short-term impacts: The initial financial outlay of $400 million might weigh on TotalEnergies' cash reserves and could affect quarterly earnings. In the short term, investors might see a dip in profitability metrics.

Long-term impacts: Over the long term, this initiative can drive sustainable growth and brand loyalty in emerging markets, potentially leading to increased market share and higher long-term profitability. Furthermore, the environmental benefits, such as reducing CO₂ emissions, could align with future regulatory requirements and attract additional investments.

Market Research Analyst

The move by TotalEnergies to invest in clean cooking solutions is a strategic play to tap into a largely underserved market. With more than 2.3 billion people lacking access to clean cooking solutions, the introduction of LPG and digital payment technologies can disrupt traditional cooking methods reliant on wood and charcoal.

Market potential: Africa and India represent vast growth markets for LPG, where rapid urbanization and rising disposable incomes could accelerate adoption rates. By facilitating easier access to LPG through digital pay-as-you-cook solutions, TotalEnergies can significantly lower the barrier to entry for consumers, driving widespread adoption.

Competitive landscape: This initiative could set TotalEnergies apart from competitors who have not yet entered or invested heavily in these markets. Early mover advantages such as brand establishment and consumer trust can be important in capturing and maintaining market share in these regions.

Environmental Analyst

The investment by TotalEnergies in clean cooking solutions is noteworthy from an environmental perspective. Transitioning from traditional biomass fuels like wood and charcoal to LPG can lead to substantial reductions in household air pollution and CO₂ emissions.

Health benefits: Improved air quality can lead to lower incidences of respiratory and cardiovascular diseases, particularly among women and children, who are most affected by household air pollution. This not only improves public health outcomes but also reduces healthcare costs in these regions.

Environmental impact: The reduction of CO₂ emissions and deforestation aligns well with global climate goals and can contribute significantly to regional and global environmental sustainability. This action by TotalEnergies could inspire other companies to adopt similar initiatives, amplifying the overall positive environmental impact.

PARIS--(BUSINESS WIRE)-- Regulatory News:

At the Clean Cooking Summit organized by the International Energy Agency (IEA), TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE) announced its ambition of giving 100 million people in Africa and India access to clean cooking by 2030. TotalEnergies will therefore invest more than $400 million in the development of liquefied petroleum gas (LPG) for cooking.

In addition, to make clean cooking affordable for as many people as possible, the Company will develop the use of digital pay-as-you-cook technologies that allow customers to pay only as they use the LPG cylinder, rather than having to pay the full value of the cylinder volume up front.

According to the IEA¹, more than 2.3 billion people worldwide do not have access to clean cooking solutions and still cook their meals on traditional stoves using wood and charcoal. As the IEA points, access to cleaner cooking fuels, such as LPG, helps:

• Improve people’s health thanks to better air quality, limiting the risk of respiratory complications and cardiovascular disease. Household air pollution is the second leading cause of premature death among women in sub-Saharan Africa.

• Reduce gender inequality by facilitating access to education, employment, entrepreneurship and, ultimately, financial independence for women. Clean cooking solutions represent a significant time-saver for people who would otherwise spend as much as 20 hours per week collecting wood for cooking purposes.

• Reduce CO₂ emissions and deforestation. Universal access to clean cooking solutions would result in emission savings of up to 1.5 billion tons of CO₂ equivalent by 2030 (of which 900 million tons in Africa) – equivalent to the CO₂ emissions produced by the air and maritime industries in 2022 or the deforestation of forests the size of Ireland each year.

“We praise this initiative by the IEA, which TotalEnergies embraces to promote access to reliable, affordable and sustainable cooking solutions for as many people as possible, in line with the Company’s purpose” said Patrick Pouyanné, Chairman and CEO of TotalEnergies. “By developing access to clean cooking in Africa and India, TotalEnergies aims to have a positive impact on the environment and on people’s health, while also helping to reduce gender inequalities in these regions. Clean cooking contributes to long-term social, economic and human development in a more sustainable way.”

The company is already a major player in the distribution of LPG in cylinders, with more than 50 million people in Africa and Asia benefiting already from a reliable and cleaner energy.

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About TotalEnergies
TotalEnergies is a global integrated energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to provide as many people as possible with energy that is more reliable, more affordable and more sustainable. Active in about 120 countries, TotalEnergies places sustainability at the heart of its strategy, its projects and its operations.

@TotalEnergies TotalEnergies TotalEnergies TotalEnergies

Cautionary Note
The terms “TotalEnergies”, “TotalEnergies company” or “Company” in this document are used to designate TotalEnergies SE and the consolidated entities that are directly or indirectly controlled by TotalEnergies SE. Likewise, the words “we”, “us” and “our” may also be used to refer to these entities or to their employees. The entities in which TotalEnergies SE directly or indirectly owns a shareholding are separate legal entities. TotalEnergies SE has no liability for the acts or omissions of these entities. This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TotalEnergies SE nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise. Information concerning risk factors, that may affect TotalEnergies’ financial results or activities is provided in the most recent Registration Document, the French-language version of which is filed by TotalEnergies SE with the French securities regulator Autorité des Marchés Financiers (AMF), and in the Form 20-F filed with the United States Securities and Exchange Commission (SEC).

¹ www.iea.org : “Vision for Clean Cooking Access for All”, July 2023

View source version on businesswire.com: https://www.businesswire.com/news/home/20240514007401/en/

TotalEnergies

Media Relations: +33 (0)1 47 44 46 99 l presse@totalenergies.com l @TotalEnergiesPR

Investor Relations: +33 (0)1 47 44 46 46 l ir@totalenergies.com

Source: TOTALENERGIES SE

FAQ

What is TotalEnergies' plan for clean cooking in Africa and India?

TotalEnergies plans to provide clean cooking access to 100 million people in Africa and India by 2030, with a $400 million investment in LPG.

How much is TotalEnergies investing in the clean cooking initiative?

TotalEnergies is investing more than $400 million in the development of LPG for clean cooking.

What technology is TotalEnergies introducing to make clean cooking affordable?

TotalEnergies is introducing digital pay-as-you-cook technologies to make clean cooking more affordable.

How many people currently lack access to clean cooking solutions?

According to the IEA, over 2.3 billion people worldwide lack access to clean cooking solutions.

What are the health benefits of cleaner cooking solutions?

Cleaner cooking solutions improve air quality, reducing the risk of respiratory and cardiovascular diseases.

How will TotalEnergies' initiative impact CO2 emissions?

The initiative has the potential to save up to 1.5 billion tons of CO2 emissions by 2030.

How does clean cooking affect gender inequality?

Clean cooking reduces time spent on collecting wood, facilitating better access to education, employment, and entrepreneurship, especially for women.

What is the current reach of TotalEnergies' LPG distribution?

TotalEnergies currently serves over 50 million people in Africa and Asia with LPG.