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TotalEnergies unveils new fuel retail deals as it moves to net zero
22/3/2023
TotalEnergies has announced plans to partner with Canadian convenience store leader Alimentation Couche-Tard at its fuel retail sites in Belgium and Luxembourg, and to sell its forecourt networks in Germany and the Netherlands to the Canadian firm, as it moves away from traditional fuel retailing and towards hydrogen and electric vehicle (EV) charging.
In Belgium and Luxembourg, TotalEnergies and Couche-Tard will form a 40:60 joint venture that will own and operate 619 service stations. TotalEnergies is a market leader in these two countries, and the partnership aims to accelerate the transformation of these assets by maximising their non-fuel sales through shops, car washes, food services and other convenience features.
Meanwhile, in Germany and the Netherlands, TotalEnergies will sell 100% of its fuel retail networks to Couche-Tard, including 1,198 service stations in Germany and 392 in the Netherlands. TotalEnergies is not a market leader in these two countries and believes the expertise of a convenience store retailer is crucial. The company will instead focus on developing new mobilities – electric and hydrogen – in these countries.
The service stations in the four countries will remain under the TotalEnergies brand as long as the fuel is supplied by the company, mainly from its refineries in Antwerp (Belgium) and Leuna (Germany), for at least five years.
The planned €3.1bn transaction covers both the service station networks and TotalEnergies’ B2B (business-to-business) fuel card activities. The company will retain its activities related to off-station EV charging (charging hubs), hydrogen retail and the wholesale fuel business, as well as the AS 24 service station network for trucks.
Net zero ambitions
With its ‘Green Deal’ and ‘Fit for 55’ legislative package, the European Union has taken practical steps toward achieving its ambition to become the first carbon-neutral continent. As part of this goal, the European Parliament recently voted to end new sales of combustion-engine vehicles by 2035 to promote the development of zero carbon vehicles. These major trends have prompted TotalEnergies to make decisions regarding the future of its retail networks in Europe, which will see its fuel-related revenues decline, while EVs will charge more often at home and at work, and less often at service stations.
TotalEnergies’ strategy is to become a multi-energy company, and to reach net zero by 2050. The company has also set a specific target of reducing its petroleum product sales by 30% by 2030 so that its fuel sales and refining throughput do not exceed its oil production. Since 2015, TotalEnergies has divested its service station networks in Italy, Switzerland and the UK.
This strategy is leading TotalEnergies to develop actively in the EV and hydrogen sectors. It is planning to deploy charging points on major roadways and in large cities in Europe and is developing a European network of hydrogen stations for trucks in partnership with Air Liquide.
