TotalEnergies SE (NYSE: TTE) disclosed that it has inked an agreement with Veolia to produce biomethane from Veolia waste and water treatment facilities operating in more than 15 countries. As per the agreement, TTE and Veolia will use their industry knowledge in biomethane production. Veolia will also offer its expertise in the production and processing of biogas from its facilities, and TotalEnergies will share its deep knowledge of the entire biomethane value chain.
The partners will work together to create and invest in a portfolio of international projects to produce 1.5 terawatt-hours (TWh) of biomethane per year by 2025. This renewable gas production from organic waste will be similar to the average annual natural gas consumption of 500,000 people, saving approximately 200,000 tonnes of CO2.
Furthermore, TotalEnergies plans to sell the produced biomethane as a renewable transportation fuel or as a natural gas substitute in other applications. This collaboration of Veolia is consistent with Veolia's strategy to develop solutions for decarbonizing the energy mix, particularly with biogas, as part of an ecological transition.
On the other hand, TTE is pleased to collaborate with Veolia to boost waste recovery through biomethane generation, and therefore the circular economy, one of the foundations of sustainable development. TotalEnergies' transition into a diversified energy firm, as well as its desire to be a key player in renewables, includes the development of biomethane.