TotalEnergies SE (TTE) Earnings Call Transcript & Summary

Good morning or good afternoon to you all, and thank you for joining our Investor Day. I'm Ladislas Paszkiewicz, in charge of Investor Relations. After the presentation we had from Helle Kristoffersen yesterday on the Total Energy outlook, we will focus today on strategy. Patrick Pouyanné and all the members of the executive committee are here, and we'll address your questions during this afternoon. Patrick will first present the strategy, and there will be a session of Q&A after that. Then will come the time of focused presentations with 2 main presentation, 1 on renewable with Philippe Sauquet; one on the mobility revolution with both Bernard Pinatel who will focus on biofuels and Alexis Vovk who will focus on electric mobility. A Q&A session will also take place after the presentation. So this is the program for today. But before we start, I'd like to hand over to Arnaud Breuillac who will present you the safety moment for today.

Thank you, Ladislas. Today, we've chosen to share with you a sad safety moment with the tragic death of 1 of our contractor staff, a 37-year old rig floor man. The fatal accident occurred on August 23 at 11 a.m. on our drilling operations in the U.S. GoM. The incident analysis is still ongoing, but let me present you with our current understanding of what happened. The drillship, Pacific Khamsin, was pulling the riser colon out of the water in preparation for a rig move to escape the Storm Laura. This is a routine operation that was executed with no time pressure as the rig disconnection had been decided well in advance. The injured person was removing large bolts from the riser colon using heavy-duty pneumatic wrench. The weight of this tool is 150 kilograms, and it was attached to a wrench cable with a 0 gravity compensator. The tool became jammed and the injured person was working over the tool during the attempts to free it by pulling on the wrench and also by manipulating it manually as you can see on the small schematic. As the tool suddenly became free, the tension in the wrench cable was released and projected the tool upward, hitting the injured person and projecting him from the riser table to the rig floor. Unfortunately, medical efforts at site failed to save his life. This strategic accident hands a 2-year fatality-free period for the E&P activities and is a shock to our company. An Incident Analysis Committee is working jointly with the drilling contractor, [ Pacific Khamsin ], to determine the root causes of this accident. And preliminary assessments and recommendations have already been shared with local authorities and within Total. Our next steps are to complete the root-cause analysis and to continue to share learnings and mitigation measures so that every possible information is used to prevent similar occurrence. Safety is a core value of Total, and we strongly believe that it is a cornerstone of operational efficiency. Our track record demonstrates our relentless drive for improvement and this is illustrated by the frequency rate of recordable injury, which is on a good trend that compares well with our peers. But of course, no complacency as we are more than aware that with safety every day is a new day. In terms of health, we have limited the impact of the COVID-19 pandemic with a fast and proactive response. We've mobilized very early a crisis management set at group level to support safe continuation of operations around the globe in all parts of our businesses. We've been able to source and supply more than 100 million masks to 130 affiliates and to enforce strict health protocols to maintain our site and premises COVID-free. As a result, there has been no impact on our production or our ability to supply vital products and energy to our customers. We've also supported our communities with contribution adapted to local situations. More broadly, safety defined as HSE, including environmental safety, will be well covered in today's presentation as we believe that long-term success is built on sustainability and acceptability. Thank you.

So good afternoon in London and Paris. Good morning in New York, and good evening in Singapore. Welcome this afternoon to the traditional September Total strategy and outlook session. First, I hope that you are all safe and sound and coping all right with current COVID situations. Thank you to Arnaud to have made this safety moment and way to pay tribute to this young man in the U.S. And Arnaud has also to take the traditional standard slide on our safety commitments and results. To be honest with you, considering the number of short-term challenges and a very high degree of uncertainty that we are facing in these extraordinary times, we ask ourselves whether we should maintain or not this strategic presentation as it will be difficult to answer to any question on the very near future but because our action plans to tackle the present challenges are well into force. Because we demonstrated our higher resilience since the beginning of this crisis, thanks to the work done in past years of migrating the portfolio, lowering the breakeven, deleveraging the company to strengthen our resilience. Because energy is a matter of medium and long term in the same way that we have announced our climate ambition to get to Net Zero in May at the worst time of the COVID lock down, we have finally decided to maintain this strategy presentation. And this is probably the most important one I will do since 2015. Because today, we will elaborate more precisely looking to the next decade how we are willing to reach our ambition to get to Net Zero by 2050. How we want to transform Total to meet the dual challenge as summarized yesterday by Helle, more energy and less carbon. Today, you will hear our Total Oil, I would say, will become Total EnergieS, with a big s, a broad energy company, which will be the first oil and gas major to take to this commitment that it will reduce by 2030 the Scope 3 emissions of its customers in absolute value compared to 2015. Oil customers, their demand. Those are keywords shaping our strategy. Our strategy derives from demand evolution, markets evolution and not from supply availability as it could have been in the past. Yesterday, rightly in introduction, Helle told you that the Total 2020 Energy are to focus on energy demand, not energy supply. This was intentional. Because changing the world energy mix to meet the climate challenge within priority required to change the demand patterns together with our customers, together with society. Today, we will use concrete examples of successful projects to demonstrate proof-of-concept by building a multi-energy company as possible. Today, we will explain why becoming a broad energy company is consistent with our long-term strategy to invest for profitable growth with our capital disciplined approach, targeting increased cash flows and returns. Today, we will show you our oil and gas businesses will found the transition even at $40 per barrel for profitable growth in renewables and electricity while supporting the dividend at the same time. Because time is right to accelerate growth into low carbon, surge in demand for green energy and climate action is triggering wave of supportive government policies and attracting new financial partners and is creating opportunities to grow in new areas and unconsolidated markets. Strategically, we recognize sustainability is a key to long-term success. The shift in demand-driven low carbon sales mix underpins Scope 3 neutrality. And diversifying activities by growing renewables power generation increase resilience and mitigate oil price volatility. Accelerating energy transition and transforming to broad energy company is a matter of leveraging expertise and competitive advantages to selectively capture opportunities and build long-term positions that will enable us to achieve our ambition of moving forward with society and stakeholders to grow the company sustainably and profitably and get to Net Zero by 2050 or sooner. The next decade, 2020, 2030 will be a transformative decade for Total. Further high-grading the portfolio, favoring gas overall, accelerating expansion of low-carbon electricity and decarbonizing the sales mix, all within the framework of strict capital discipline. The energy transition is an inevitable evolution. Cleaner energies will continue to displace traditional energies at an accelerating rate. The real risk is not participating in the transition and being left behind. We have the knowledge, the technology, the financial strength needed to thrive in fast-growing areas like renewables, biofuels and carbon capture. We have studied these for years and developed in-house expertise. We have visibility, and we are confident on the returns we can expect in the next 5 years from this strategy. So now we go to work, we will execute and deliver. In 10 years, we grow the company largely by developing opportunities we have on hand today and we reduce emissions. We took the walk and we walked the talk. Let's go for now 1 hour presentation. It will be a little long. And to describe you the thematic of the dual challenge, we will tackle it, increasing energy while decreasing carbon. This presentation is a little different from previous ones. You will have at the beginning, the menu for the next 10 -- first 10 slides. So I will announce you the menu with simple slides, maybe some of them will surprise you. And then after I will enter into the menu for each dishes with some details. And at the end, for the desert, I will come back to you to summarize and speak about returns to shareholders. So let's go in the journey that we have prepared. I will speak alone today. It's mainly due to this virtual, I would say, exercise. It was more complex to us. But honestly, this is the result of hard work of all the teams, that is why all my colleagues are here together with me. It's -- I'm the voice -- the speak -- spoke person for the whole teams and the whole executive committee to describe this strategy. So of course, and I'll be short, because you are -- you heard Helle yesterday during 1 hour. All that -- all these strategy, again, is linked to the evolution of the demand we anticipate. We have seen scenarios. I think there are 2 big trends. Growing population in emerging countries, aiming at higher living standards, so growing energy demand, which we have to face. And the other part of the challenge is absolute necessity to get the planet to carbon neutrality by 2050, if we can, and the latest by 2070 with all the countries being on board. So that's the 2 challenges. And in front of that, this has some implications like it was presented to you by Helle on the energy mix and on the various sources of energy. For all, it's clear that the acceleration of innovation to substitute all use is there and that all demand will plateau 2030 plus and then decline. It will have so an impact on long-term prices, and as you know, Total is considering $50 per barrel. On natural gas, the scenarios, which have been presented to you, we -- clearly, the natural gas is key in the energy transition, available, affordable, complement to renewables with a specific segment of the natural gas, which has the fastest growth, which is the LNG. And natural gas also will have to be decarbonized with greener, with biogas and hydrogen. The other segment of the energy mix, which will grow quicker is electricity. Clearly, if we want to go to Net Zero policies, electricity will be at the core of the mix going -- coming from 20% of the worldwide energy mix to at least 40% in the Net Zero in the 1.5-degree scenario. And of course, this will have to be decarbonized electricity. And so renewables will be the segment, which will have the highest growth. And last but not least, as it was explained to you, to get to carbon neutrality, carbon things are required. So these are the trends, which we take into account. At the same time, Total as a responsible company, and our aim is to become responsible energy major, has expressed its clear ambition in climate ambitions in May this year, getting to Net Zero. And we clearly share not only a corporate level, but each employee of the company shared the ambition to contribute to get to Net Zero by 2050 together with society for our world business. And we have established 3 clear objectives and commitments to -- on this road map to get to Net Zero. The first one is, of course, Net Zero on all operations, the emissions of Scope 1 and 2. As you all know, when you speak about 40 billion tons that yesterday Helle was mentioning as a world emission, this is some of Scope 1 of all corporation and individuals in the planet. Scope 1 are additive. If each company is taking care of the Scope 1, then the planet would be at Net Zero. But we are also on the top of it, because it's a requirement from the society. We have not to work only on our emission, but to work with our customers in order to help them to go and to change their demand patterns because if we want to move the planet, we need not only to act on the supply, but we need also, as I said, to act on the demand. And there, we took 2 commitments regarding, I would say, the emission of our customers. The first one is for Europe. Europe is very important for Total because 60% of our sales and our customers are located in Europe. And so we took the commitment because Europe itself at a political level has decided and has set itself the same target to be carbon-neutral by 2050. There is no reason and no way, in fact, to escape to work together with Europe and to be, ourselves, carbon-neutral in Europe by 2050 or sooner. And on the worldwide basis, on the question of this Scope 3 emissions of our customer, we set a target in terms of carbon intensity, which is to diminish our portfolio of sales, the carbon intensity of the portfolio of sales, by 60% or more by 2050. So in May, we said that. And of course, today, we will explain you how we translate that ambition, taking into account the evolution of energy markets into our strategy. The strategy is summarized on this chart. In simple words, there is no figures for once in Total. And I think the message there is that, clearly, we want to transform Total into a broad energy company. And this is what we will explain you what it means today more precisely. It means that we are willing to proposed to investors a sort of new concept in energy, a company of energy encompassing natural gas, electricity, oil and carbon sinks. Again, somewhere, we summarized that in sort of a motto: Total becoming Total EnergieS, with a big s, with, of course, the ultimate objective. But sustainability is key to create long-term value for shareholders. So what does it mean by segment of energy, which is a different approach of the traditional one, but again, we want to cope with the demand? On natural gas, we are a clear leader, #2 in the world. And this is one LNG. It's one of the fastest-growing segment. So we'll continue to play on that advantage and to maintain and even develop that position, integrating along the value chain while at the same time, we'll develop positions in biogas and clean hydrogen in order to decarbonize the natural gas. We'll also promote natural gas for power and mobility. Electricity is okay. Of course, again, the second fastest segment of the energy is, on which we want to develop and to accelerate our investments, primarily electricity being produced from renewables. But there again, same strategy to integrate along the electricity value chain, production, storage and trading and supply. All will remain a core activity because the demand for all is still there despite we go to the plateau. But there, because of this long -- the trends that we expressed, we will focus our investments on low-cost oil, which will be resilient to the volatility of the oil price. And as well, we'll invest in biofuels, which will be a substitute to all for liquid use of energy. And at the same time, of course, we have to adapt our refining capacity and sell to the demand in Europe where we are a big refiner. And last but not least, carbon sinks. Because we want to be ourselves carbon-neutral, we'll have to take our share of investing in carbon sinks either nature-based or carbon capture use and storage. So that's, in fact, the menu that I propose, and just to complement the menu now, we come with 2 figures. So we have a growing -- we have -- we want to increase energy. We have some ambition to continue to grow the company, let's be clear. And that means as we are an energy supplier, to grow our energy production. But our growth for the next decade will come from the 2 segments, which offer the fastest-growing -- the fastest growth, which are LNG, as I said, and electricity. So as you can see on this chart, by the way, because we know you better understand million barrels of equivalent per day than terawatt per hour, we translated on the left side. The scale is in million barrel of oil equivalent per day, but it's a little complex, to be honest, to transform some terawatt hour in million barrels of equivalent per day. I'm not sure, by the way, that our stakeholder would be happy if we continue like that. So on the right scale, we put another unit, which will have -- maybe to better understand, which is the petajoule per day. I think our Australian friends love this -- they love this unit. So maybe we'll have to take that on board. But more seriously, what we show you that is that this company has the ambition to grow from around 3 million barrels of oil equivalent per day today to 4 million by 2030. And the growth will come from half from gas, in fact, from LNG, let me be clear, and the other half will be from electrons and green electrons. The 120 terawatt, which appear there are equivalent to 500,000 barrel equivalent per day. The oil will remain in our portfolio but will be stable. Maybe it could decline by horizon as 2030, but the decline will be replaced by biofuels, by productions of another liquid, because again, we'll need some customers. We'll need a liquid form of energy in the future. So that's for the growth. And at the same time, we want to reduce emissions. And today, we are taking new commitments on the Scope 3 emissions of our customers, I should say, of the energy products used by our customers. Because, in fact, it's not really true. It's not the Scope 3 emissions. The Scope 3 emissions of our customer are our Scope 1 in fact. But let's say it like that. In absolute value, that's the most important word. Until now, and we are the first major oil and gas company to take a commitment in absolute value on the decrease of the Scope 3 emission of our customers. Why do we take that? Because first, and I come back to the commitment we took on being carbon-neutral in Europe by 2050. I read the comments about the fact that we are concentrating only on Europe. But again, you will see the positive impact it has as a world company. Europe again represents 60% of our emissions in 2015. It was the same, by the way, in 2019. The absolute figure did not diminish between '15 and '19, 410 million Scope 3 emissions are reported by Total. But in Europe, there is clearly an acceleration of the evolution of the demand. And so we commit to reduce our Scope 3 -- the Scope 3 emissions of our European customers by 30% by 2030, which would be a first step to go to 100% by 2050. So this will come back on that. And these results, I mean this commitment in Europe, of course, contributes to the fact that we can take a second commitment today, which is that on a worldwide basis, our Scope 3 emission in 2030 will be lower than the one in 2015. And again, we are the first to take that commitment. Stakeholders ask us a question after we make our commitments in May. And tell us, "But okay, 2050 is assigned. But what do you do in 2030?" You have the answer today. So you will ask me, but what do you do? You grow on one side your production. You reduce your emissions. What is the magic tool that you have find? In fact, again, it's just about demand. And what is driving the -- most of the emissions are not the one we emit when we produce . When we produce, Total emits 50 million tons of CO2. But the products we sell and our customers, which are using these products, they emit 400 million tons. So the focus will also be there. And in fact, we are able to reduce our emissions on the Scope 3 parts -- to reduce the Scope 3 emissions because we will adapt our sales pattern to the demand patterns. What does that mean? That means that in 2019, we sold 55% of oil products, 40% of natural gas and 5% of electrons. By 2030, by adapting again our system and our sales to the demand, we will reduce the sales of our oil products by almost 30%, which will be, again, on the -- as the liquids -- and liquids be replaced by 5% of biofuel. So the liquid sales will represent together 35%. Natural gas sales will increase to 50% linked to our growth in LNG. And the electrons, in particular, this green electrons, will represent 15% of our sales. So that's with the 3 slides who have the framework of the strategy of the company and why we say we are somewhere transforming Total. Of course, to do that, we'll need to align investments to become that broad energy company we aspire to be. That means that along the years, the next 10 years, the next decade, progressively, because it's a matter to have access to more and more projects, we will increase the capital we spent in renewable electricity. We'll maintain the capital we spent in LNG, more or less 15% to 20% of our CapEx. And oil and gas will continue to reserve -- to receive the major part of it because -- and that's fundamental to this transformation. We need to continue to deliver cash flows coming from oil and gas in order to be able to finance the growth that we want to deliver in renewables and electricity. And so you have said some indication about this increasing capital spend in renewables and electricity. It was $1.5 billion the last 5 years, 10%. It will be more than EUR 2 billion and more than 15% of our capital investments for the next 5 years. And it will progressively grow to more than EUR 3 billion and more than 20% on the next 5 years. Of -- this strategy aims, of course, not only to grow. It's not a matter of volume. It's a matter of value for all of you. We know very well the message. And so at the same time, we will be able to, of course, increase cash flows and deliver a double digit profitability, more than 10% of return on equity at $50 per barrel. I will come back on this slide at the end of my presentation, but just have a look. What do you see? You see that if you take -- we took by chance the last 12 months at an average of $51 per barrel so as we propose to look in 2025 to an environment at $50 with a sensitivity of $60, you can see that renewable electricity in 5 years become very clear. Very clear with EUR 1.5 billion. You can see that there is an increase of around 30% of the LNG cash flows. I will come back on that. And you can also see, but of course, oil and gas and LNG are offering us upside. Its price is higher than the $50 base -- case base. And that's, again, the enzyme. In fact, to be clear, the oil and gas is the enzyme of transformation because they will give us a blood to be able to accelerate investing in renewables and electricity. Again, you will tell me, and I affirm the question, why Total? What is -- why you do think you can become this broad energy company? We took the question seriously, and we put there the 8 elements, I would say, which we consider our competitive advantage and which we can build to grow in renewable and electricity. And not to remain only an oil and gas company. You should read them from bottom to the top. They go 2 by 2. That is well-organized, you know engineers in Total. So the first one, of course, I just mentioned it, we have the oil and gas cash flow. We have the financial capacities. The second one, which is important, we are thinking on the worldwide basis. We have a worldwide footprint. Where we think about the strategy of renewables and electricity, I will come back on it. We can think of the world, looking for the best opportunities. And from this perspective, we are offering something different than many utilities, which, in fact, are more national, Continental or Atlantic. The second element of competitive advantages are linked to technical -- the technical capacities and competencies of the company. Project management and offshore expertise is clear. And when we look to offshore wind, project management, we speak about 3, 4 projects, in which we invested in Scotland for $4 billion of CapEx. And when we want to be pioneer in floating of shore wind, obviously, we have there some in-house expertise that we can use and leverage to be pioneer of this technology. The first elements are linked, in fact, to our strong position in gas. And in fact, we don't discover power today. Our teams under the leadership of Philippe and our trading teams have for long look to gas to power some power projects, by the way, gas-fired power plant. So the integration gas to power is well-known. And we know we have the expertise of all these markets, oil, gas and electricity for our trading teams, which we know we have put all together in Geneva since last year to have a better -- to leverage better all the knowledge we have of all these markets. And last but not least, when we go to downstream to the customers within the DNA of Total, there is a customer proximity through all the activity we get in Marketing & Services. And we have another asset, which is our global brand, our global reach. Just small information, but we recently acquired a portfolio of customers for gas and power customers in Spain. We made some polls among the population to try to get -- to do to ask a question, which brand should we use. And 45% of the Spanish who answered to the poll knew Total, having a good image of Total, despite the fact that we leave, unfortunately, Spain 10 years ago, when we sold all our shares in CEPSA. So this brand as an asset and the global reach it represents, and we should build on it. So these are, I will say, why we are confident. And not only to speak about the advantage, but to put them into action, in particular, on the technical competencies. Today, we have launched a project. It's still at a project, so it's not yet, of course, in, I would say, in action, which we call the One Tech Project. The idea is to concentrate all the group's technical expertise, which are spread today between E&P, Refining and Chemical, Marketing & Services and Gas, Renewables & Power in one large technical center. This will represent the central organization, more than 3,300 engineers. Why do we do that? Not at all to make synergies. No. We will add contrary. We want to leverage the existing expertise, which are high because Total -- the success of Total today are largely due to our technical competencies of our engineers and technicians around the world, but we want to really leverage that in order to give to our renewable and electricity business that will grow now at a large scale the, I would say, manufacturing and technical background that it requires if we want seriously to build this broad energy company, and this is our purpose. If we want to foster innovation, we need to have -- to be able to allocate these competencies to these new businesses. And I will tell you, it's not only the company we want, it's our employees. Our employees today, really, they are all like in the society. They want to contribute to the climate challenge. They are in an energy company where you have the competencies, and I've seen when we propose them to tackle their emissions, they raise 500 IDs, different projects. So they are willing to contribute. Of course, they hear what is happening around us. This is a pressure on Total as an oil and gas company. But I don't want to be in the [indiscernible] apart. They want to be together with -- in this transformation. And I think what we offer them will be unique opportunity to contribute directly to the transformation of the company. So it's why I'm using transformation today for the first time in my speech. It's not only a matter of strategy, financial, capital allocation. It's a whole company that we want to embark in that projects globally, and in particular, again, our technical people, which are at the core of what is an industrial company like Total. So you have the menu, I could stop my presentation there, but we have more slides in order to give you some details. And it's quite a little long, but I hope you will like the dishes one by one. So the first one, and I will -- the first part, I will go through the gas, through the electrons and the liquids. So today, the presentation is an upstream downstream. It's a little different. We do it through segments of demand. So gas is first. Of course, they are -- it's clear. And LNG, again, you understood, is at the core of our ambition. Why? Because this market experienced a growth of more than 10% per year in the last 5 years. The first semester, despite the pandemic, it was plus 7%. And I heard yesterday that in August, the Chinese demand has grown by 12% in August. So this is a market which, clearly -- because, in fact, in the energy transition, there is a strong case for gas replacing coal. And when I heard this last week, President Xi from China announcing carbon neutrality by 2060, I'm sure it's one of the good news for promoting LNG. Of course, renewable will be there as well and hydrogen and EVs in China, but gas will be -- clearly, have a share -- a lion's share in that mix. And so we are very well-positioned. On the top of it, there is not only the demand, but on the supply side, it's true that we face since last year a form of oversupply, which has been accentuated by the pandemic somewhere. But because of the pandemic, there is a lot of projects which are delayed in terms of sanctions. This year, no new projects. Last year, all the commentators were afraid to see too many projects by 2025. The reality is that when you delay by 1 year and maybe 2, because I'm not very optimistic about next year and the oil price considering the inventories, if we did it by 2 years, there is no way to accelerate LNG projects. It takes 4 to 5 years to build. And so that means that there will be a tightened supply by '24, '25, as you can see in this chart, maybe even in '23 even at only 5% growth. And that will benefit from Total -- to Total. Why? Because we sanctioned projects last year. And so we are in a very good position to benefit from this evolution of the market in LNG. I will not be long on this one. You know that slide. We have established we are the #2 worldwide player in an integrated value chain. We are producing in 11 different plants. We have regas terminals. We have long-term customers. So world system is a matter of size integration to capture value. For the next 5 years, we will increase our LNG sales to 50 million tonne per year from 35 million. So still an increase. And why? Because primarily, all production will grow by 10 million tonnes from '20; more or less to '30s, 18 million to 20 million. So that's a program. And again, I will not be long. I will answer the questions that you have. But we have 3 flagship LNG projects, Arctic 2, Nigeria Train 7, Mozambique LNG. They all progressed well despite the pandemic, 38% progress for Arctic, Mozambique LNG engineering is progressing very well. It's project financing and in place and all the early works are done to welcome the construction. Just a note, if you add the 3 figures which are at the bottom of this slide, it represents $1.5 billion of cash, which will be generated at the project level in group share. So you will understand why, after that, I will speak to you about growing cash flow from LNG. And it's not only because we give you today a view not only to '25, but to 2030. What is an important message? In fact, with all the work which has been done in the last years, we have already in our portfolio enough resources to feed the future growth beyond '25 until 2030 by an additional 10 million tonnes. In fact, we have generated many options in, of course, the Russia giant Arctic resource with our partner, NovaTek, which is targeting 70 million tonnes of LNG by 2030. In Mozambique, we're beyond the first phase. There is more to come, much more resources, which could be developed in synergies with other operators. We have in the U.S. projects which are expansions of existing plants, which are generally quite profitable like an expansion of Cameron and other new project we want to develop in Baja, California. And Papua LNG has been delayed because of the pandemic, but it's there and will be developed I'm convinced because of its geographic position. So it's another option, and there could be more to come. So that means that Total will not spend a lot in M&A to acquire LNG resources in the come -- in the next 10 years. We have what we need in our hand. Again, I mentioned these figures already. We approached this -- all the integration that the LNG marketing and trading teams are taking -- are creating value from scale and arbitrage. The strategy of Total -- let's just 1 minute on the right-hand side of this chart. As you can see, there is more and more integration. In fact, we want to dedicate -- when we take some market risk, when we market LNG by ourselves, we took it on our balance sheet. We want to do it in an integrated way. We think that being a pure merchant player is clearly is exposing to volatility of the markets, like it is the case today, where you are -- you have some commitments to offtake some LNG, but there is no real market to absorb it or at a very low price. And it's much better to come back to the integrated approach, which is that we will market the energy we produce. Of course, as you know, in the past, we have taken some offtake commitments from the U.S. LNG. But in the meantime, we are developing positions. And so you can see that this white part at the top of the column is diminishing, and that will be the trend clearly to exit from a pure merchant risk, but to take the risk if we have on the -- also the profits coming from the production and the infrastructure, I would say, the LNG plant. I would say that we have a good -- and again, you've seen this chart, this slide last year, but it's useful to us to express what it means, integration. It means that when we are developing a customer portfolio in Europe, either through gas-fired power plant or through customers, B2C and B2B customers, we are having a short, I would say, of LNG. It represent 11 million tonnes of short. And these 11 million tonnes, we have the infrastructure to fill back. It's owned by us, the regas capacities. We have 20 so we can manage them, and we have also the portfolio in Europe will represent around 20%, 25% of our sales. And Europe is key because it's a very liquid market. It's very accessible. And so -- and you've seen that it's a sort of market with last results. We observed it last year when the price of LNG are low. Everybody is coming to Europe. It's better to be able to control your infrastructure. And by the way, we are quite happy to see our regas capacity building full and making money in this type. So it was, again, the advantage of integration. So that's in terms of cash flows that you can expect from our integrated LNG business. We put there the 2019 figure at EUR 64 billion. So you can compare to what we'll be able to deliver in 2025. Again, the production will increase by 40% LNG production from 500 something to 800 on this period with the projects which have been all launched. And you can observe that, in fact, we'll be able to deliver same cash flow at $40 per barrel, but last year at $64. You have 70% more or less of the LNG portfolio, which is linked to the oil price. It's why you have clearly an upside. And at $60, it represents between $1.5 billion to $2 billion extra cash flows. You had the same assumptions of NBP and GKM to be able to compare and to have the sensitivity to the Brent price. So I've been long on gas, but I cannot stop there on gas without speaking about methane. Because, again, if you want to be consistent, we have to be consistent with the climate ambition. And the methane, when we speak about gas is, in fact, lowering our Scope 1 and 2. And there, there are 2 information. The first one is on the right. In fact, when we look to our operated gas assets, I can say today but that we are almost near 0 emissions because methane intensity of our operating gas asset is lower than 0.1%. I don't know if we can measure it lower than it. But it means that, honestly, we are at the top of the class. We have nothing to -- we continue to drive it. And it's surely not to get him coming back higher, but we are very -- we are there in a strong position. The methane emission of Total as a rule are coming more, in fact, from the oil business and from gas business. Globally speaking, if we take oil and gas, by the way, the average intensity is around 0.2%, and we'll look to drive down because as you see on the left, we have a program, and we are investing to continuously reduce our methane emissions. We've done 45% of reductions in the last 10 years. And we'll continue to drive down, in particular, by stopping flaring, by limiting the flaring or eliminating some coal vents on some mature oil fields. So there is a program, methane emissions, and really there, I think we are participants to many initiatives, and to be transparent on that. It's very important when we want to be a leader of natural gas. The other way to, of course, to be consistent with our climate ambition is not only to invest in natural gas, but also in biomethanes and clean hydrogen, because these are the ways to decarbonize natural gas. On these 2 business, it's quite new to Total. 2020 is an important year because we have established 2 business units, recruiting people outside of the company to bring expertise, 1 for biogas and the other 1 for clean hydrogen. I mean for hydrogen, but in fact, for clean. Clean means that we are color blind in Total. Even if I will tell you, that green hydrogen when you are investing a lot in renewables is, of course, quite attractive. On biomethane, at this stage, we set the first target. Probably we will increase it in the coming years when we'll have a better understanding of all businesses. But we set a target, about 10% of the gas we supply to our CCGTs in Europe should come -- should be bioethane. It's a way to decarbonize our Scope 1 emissions in fact. And so this would represent around 5 terawatt hour per year. On the green hydrogen side, of course, there are many interests in the company for hydrogen. It's, of course, for the marketing, it's a way to decarbonize, I would say, the road transportation, the trucks, buses, trains, private fleets. So we are looking to that business, where we are today, some small positions. I will come back. But we are also looking to produce with hydrogen, and we will have a sort of porch showcase in La Méde biorefinery, where we want to establish an industrial project with 100-megawatt solar plants, feeding a 30-megawatt electrolyzer. But now we are working on it, and we'll come back on it when we'll have clear IDs. But it's clearly, in fact, in the next 5 years, our plan is to have 1 green hydrogen projects in our hands to better understand it. But the rear one with intermittencies, the storage issues and with real customers, and a blue 1, which means decarbonizing by capturing the CO2 from SMR and ascending the CO2 in depleted fields. This one, we are looking in the Netherlands. So that's for gas. Now my second dish is electrons. This is a new one. You did not hear -- so you will hear a lot of electrons much more than you will ever hear within Total. But you have seen the news coming months after month since the beginning of the year. We have been quite active, and this is because -- by the way, all these activity of our teams, and in fact, it's just that we receive the fruits of what we grow for the last 2, 3, 4 years, in 2020. And because of that, we have a better visibility, better understanding. I would say we have figures. We have models, which we can add and tell you today what we can deliver, not only in terms of capacity, production, but also in terms of results and cash flow like for the other business. And I think as soon as we told you we will spend more in that business, of course, we need to be clear about the value creation. So we can do it today. We'll do it. And you notice what I already said. Our development in the electricity will be along the full value chain from production to trading through trading and storage, to customers. This is why we developed customers as well. You have here some figures, and I will make one comment. You see that by 2025, we expect to have 9 million customers in France -- today, in France, Belgium and Spain, we have around 6 million customers. So we want to grow between today and -- in these businesses. I will produce, if you add the production, the net production coming from our gas-fired power plant and from renewables, around 50 terawatt net. The difference between being supplied in France by some power coming from the nuclear system at which we are eligible when you are a new competitor in the system in France. But I will add another comment. And just to educate you the way we'll speak about electricity. You will hear us speaking about growth capacity and about net production. Why this choice? It's not to grow the figures like I read in the newspaper, not at all. It's just growth capacity. It's a way to -- it's a good metrics for understanding the development phase and the financial -- the CapEx that we need to finance if we want to build these plants, because we are ready to build and develop the plants at a 100% basis in Total. So that means a lot when you look to the development phase. Having said that, growth capacity is not at all an either capacity, either growth or net. By the way, it's not the right metrics to speak about profit and loss, to speak about revenues, to think about cash flows. Why? Because like in E&P, when I am announcing that we sanction Mero, we expect Mero 3. We speak about the project of 180,000 barrels per day, I think. It's 100% growth capacity. And then we have our own production. It will be 30,000 barrel per day net. So there, again, we make the difference, and we speak about net production, which is the basis of all the P&L, cash flows and revenues and which is another phase of the project. One, it has been invested and derisked. It is true and in our business model, and I will come back on the business model. We intend to sell 50% of what we have invested to cash in part of the value immediately, to de-risk also the project, and then we'll have in our net production 50% of what we have developed. So we will continue to speak about growth capacity and net production. Last word. In electricity, capacity doesn't mean a lot of things. In E&P, in my example, when we speak about 180,000, there is a good chance, but E&P will produce 95%, I would say, of the capacity. In electricity, when you speak about capacity, it's been staffing, because your solar plant will be around 20%. Your wind -- wind onshore at 30%, your wind offshore at 50%, and your gas-fired power plant, you don't know. It could be to 20% to 60%, depending on the weather or the other -- because it's not a base load. So that means, again, I'm advocating that this growth capacity is the right metrics in order to better evaluate the investment phase and net production for the P&L. So yes, I've been long, but I want to clarify that today. So the business project I just mentioned, and I have often the question that all that is not profitable. I mean, it's not profitable. It's profitable. It maybe not delivering the same upside when we invest in the oil business because, of course, as I've seen in the previous slides, when you are in the oil business, you have the upside when the price is going up. You have also the downside when the price is going down, which is your business model is less stable, but it delivers profitability at the end. And this is why we say we have a capital-light model. And the way we envisage our development in that business I reiterate to you is a typical project IRR will be around 5%. But we'll get first -- there is a lot of attractiveness from the financial world. And why is there a lot of attractiveness from the financial world to finance these projects? Because this is the other part of the slide. These projects are offering predictable cash flows with long-term upside. And the predictability of the cash flow because of the PPA either granted by state or corporate PPAs are attractive enough to financial institutions to be able to bring money. And so we can leverage easily without being ourselves, I would say, a green company. But it's easy for Total to leverage all corporate balance sheets to finance this project with the same competitiveness, even better sometimes than our competitors. So we put typically 70-30, but yesterday, we approved the project in Japan. It was 85-15. That's why at the end, we can say that it's -- in terms of equity, we have to inject. In capital-light, it's quite -- we can leverage it. It's -- I would say -- and this is consistent with the CapEx we have announced. And then we will farm down 50%. Why do we consider that farm-down is important? It's not only a matter of accounting is more fundamental to that. You are signing PPAs with third party, state or corporations for 10, 15 years. You never know what quite can happen. I'm afraid some state, even European state, could sometimes envisage to revisit their contracts. So farming down is a way to cash in immediately part of future revenues while derisking 50% of the project. I think, honestly, this is the same type of business models that we applied in our oil and gas business. We are never 100%. We share the risks because of the magnitude of it. But when you look to offshore wind projects, frankly, to be 100%, it would be quite brave. So there is risk at the end. The target permanently to us is to have more than 10% return. Projects in Japan, we looked yesterday was far above 10%, more in the 20% plus, to be honest. But it's true that I can confirm to you that all the projects which have been announced by Total since the beginning of the year have reached that threshold of -- at minimum 10% and some of them are above, thanks to that mechanics. So the other advantage is why we see some value to invest in renewables, is that it's strengthening our group business model, because it's balancing the cash flow risk profile by giving predictable cash flows. And it has some long-term upside. Because beyond this first period of PPA, there are some upsides. Solar panels are there for 30, it's not for 15. And even if you have to change something, most of the investment has been done, including access to the land. And in the wind farm, you can change the turbines for higher -- for more powerful turbines and get more energy from your same location. So there is a life beyond the PPA. And this is a value -- of course, we are entering into merchant markets with volatility, and the renewables will increase renewal volatility in this electricity market, that's clear, but it's offering to our successors in 15 years new cash flows with investments being largely done. The second upside will be to be able to produce green hydrogen from these renewable plants because you can have easy access to marginal 0 cost electricity and then store your energy. So it's a way to enhance the production capacity from your renewable investment. And last but not least, trading, aggregation. The more you have decentralized source of energy, there is clearly added value to be able to aggregate all that and to deliver it to the grid. And that's a competence on which we are building in the company, and we will develop on that value. So I was long there, but I think it's important to explain you why we consider that these investments in renewables and power is not only a matter of being responsible in terms of climate, it's also fundamentally to create value for the long-term for our shareholders. So I did not mention it just for fun. I think you read it on the first slide that the capacity we are targeting by 2025 is no more 25 gigawatts, but 35 gigawatt. I know that people were asking them. Why do -- where is it coming from, the 25 gigawatt for 2025? The reality is that the activity of our teams has been great since, I would say, last 2 years. And today, when we look to what we have in our portfolio, we have already this 24, 25 gigawatt, 24 rather than 25, but let's say, we have them. We have 5 gigawatts, maybe 6, by the way, in operations. We have 4 or 5 gigawatts in construction, and we have built a pipeline, 5 gigawatts being announced in solar in Spain, in France and in other countries. So the question to ask ourselves, okay, we are there. We know that in the renewable business for this type of solar and offshore wind -- onshore wind, sorry, not offshore, onshore wind. The time -- the duration of the project is 2 years, 2.5 years. So we can still increase our ambition by 2025, but we will continue to work in '21. And this project, '21 to mid '22 will feed renewable capacity by 2025, which is why we have raised the bar on 35 gigawatts to 45 gigawatts, building again on the 2020 dynamic where I would say that we have not only able to capture opportunities but at a low entry cost, and that's a tribute to the teams. So I speak about production, because at the end, as I will show you figures of P&L, what is important is production, so 50 terawatt hours by 2025 of productions, 40% from gas-fired power plant, 60% from renewables. And 2040, clearly, priority will be given to the growth in renewables more than gas-fired power plants, because in Europe, we see a limitation to that. And the target is to reach the equivalent of 500,000 barrel per day, so 120 terawatt hour per year. At this level, clearly, we will be among the top leaders in renewables. But the ambition of Total, we are among the top 5 in oil and gas, is to reach the same level in renewables. And that means that we'll have to have the enzyme to continue to feed our future growth by adding 10 gigawatts per year of new projects, of course, capacity. This is an important slide, just to show you that what we are building today is quite a unique renewable portfolio because we look -- we'll have at the end for various vehicles a full worldwide footprint, representing again this 35 gigawatts. And you see that, of course, Europe will have a share lion -- lion's share, sorry. But we'll have the -- also quite strong, quite big in India, around 6 gigawatt. And China and the U.S. are also areas where we intend to develop. And South America, by the way, this -- when you look to this map, it's not exactly the same map that we have in oil and gas. So this business is rebalancing somewhere the group geopolitic profile. But again, I said to you, we have 1 competitive advantage, it's to think on a worldwide basis and to look to various opportunities. This is what you can see. Strangely, Africa is not well-represented. It will be our next challenge. But I think it's because today, our renewable teams are going where it's more easy to have access to capacities. But I think with the One Tech story, I'm convinced that all the people who know very well Africa and the company will be able to accelerate that development in that continent. I will not be long there because Philippe will come back in a zoom on offshore wind. Just to tell you, I mentioned it, that, yes, we have decided to be pioneer in floating offshore wind. We have no late. On fixed bottom offshore, we are late compared to some competitors, even if we acquired some interest in very large projects. But we think that there is a huge potential for offshore wind, but this technology will still benefit from strong policy support in coming years, and we want really to be at the forefront of this technology. So these are the figures that I promised to you, not only figures, a little more than that. You have even [indiscernible] the ones we want to try to measure what is behind. And so the important figures that will deliver this net production of 50 terawatt per hour by 20 terawatt hour per year. In 2025, we'll deliver a result of $1 billion, cash flow of more than $1.5 billion and capital employed of $15 billion. People will make the math, we say it's a ROCE of 7%. But the clear part of that, in employed capital -- producing capital employed because we are in a growing mode. So we'll continue to feed capital, which are not all producing during this period of building this business. So let's come to the third dish, which is a liquid, not to drink, to be sure, the water is fine. But there, the motto is value over volume. Clearly, again, remember what Helle explained you about the trends in the market. And a word about the market having said that. And you have seen that all the presentation is done at $50 and $60 per barrel. And that when we announced recently our price deck for making our impairment test, we said we give a price deck, which in the coming years will -- is low, 35% today, but will grow gradually. Why? Because I'm not -- I will not speak about OPEC, demand, et cetera. Today, I'm speaking about investments. We are -- I mean oil companies have lower investment. $300 billion will be invested in 2020 in upstream. I suspect that 2021 will not be much higher because everybody will be cautious about it. Only 250,000 barrel per day have been sanctioned, almost nothing. One of the project by way is in the Total portfolio with Mero 2 and maybe a second one with Uganda will be there. So we continue to work. And on the top of it, not only lack of investment, but also shallow dynamic we observed in the U.S. in the last 3 years, which, of course, has somewhere overcome the lack -- the deficit of investments. There is less enthusiasm. Clearly, the financial investors, not only this year, but with last year, are asking themselves questions. So we think that the dynamic there, even for U.S. friends, are always surprising. It's much more uncertain than it was last year. And the lessons drawn by the fact that U.S. [ shale ] oil has been among the production which we are curtailed, among the first to be curtailed voluntary, I think, a strong signal. So our vision is that there will be reduced supply, not enough investments to compensate the natural decline, which is supportive for oil price medium-term rebound. I cannot tell you now, but by 2025, we we'll be very surprised if we don't see $50, even $60 per barrel. But remember, by the way, but today, we are sad that we were at 72% in 2018. And also in this world and in the -- we are all well-paid to know that volatility means really something in the downside and the upside in the oil market. So for Total, as I said, value over volume. It's a matter of fundamentally adapting our value chain in the oil business to the demand, and in particular, in Europe. We said we are integrated between production liquids because we have oil in condensate in that figure, of course, which are liquids, refining capacity and all product sales. What you can see in 2019, because we have, in the last 10 years, begin to diminish -- to adapt our refining capacity to the demand in Europe, whereas a disconnect between ourselves and our refining capacity. But it's not only a matter of integration, and we will continue to drive down this refining capacity. By the way, we have done the work in the last 3 months for 2025 because we have announced the divestment of the Lindsey refinery and the transformation of the Grandpuis platform and the 0 oil platform with a unit of biofuels to produce more biofuels. So that's a trend, I think. And on the demand on the sales, we'll increase biofuels and we will have again to adapt ourselves to the demand, in particular, in Europe where we are a very large retailer. So that's the business trends. On the production side, let's say that we have built our position. And we are the leader in terms of low-cost producer among the majors. It's $5 per barrel, and we confirm that we'll maintain that label. I'm sure Arnaud and his team will do better, but $5 is already quite low. And so that's something which is embedded on strategy for 5 years to look for low -- oil low-cost oil. And this has helped a lot, of course, to diminish the group cash breakeven with the [ alpha ] as well of our downstream businesses in refining and marketing and everybody. But we are a low-cost oil producer, and we intend, of course, to build on that advantage. Why are in such situation? I would just insist today a few minutes on the fact that we have a strong asset in our portfolio. It's our strong presence in the Middle East and North Africa. Because when you say my strategy is to focus on low-cost oil, where do you find it? To be honest, you find it in Middle East and North Africa. And recently, we have continued to build that portfolio, accessing to the Abu Dhabi concession, accessing to Al Shaheen, accessing to Berkine Basin in Nigeria. So consistently, we have built this portfolio, which represented 40% of group resource. So when we say that strategy, it means that we have that already also. We are -- it's a history in Total. This represents 650,000 barrel per day of production, oil and gas, but the oil 450,000, which is 1/3 of the oil production of Total. And look, the average cost of production is $3.50 per barrel. So this oil will be produced for long, for sure. And the profitability is good. Okay. I know that people say that in the Middle East, fiscal terms are tough. It's clear. But the $35 per barrel, this year, we are quite happy to have these productions, which giving us -- because there is less sensitivity, ROCE of 10% or $35 per barrel. I'm not sure there are many oil and gas assets which can deliver such a profitability this year. And so this is a position, which we intend to continue to build. And if we have opportunities to grow in that region, Total will look carefully, and it's a priority. Another region, which is -- just to fight the idea that deepwater is permanently high-cost business. When you look to the giant fields we are developing in Brazil, this can be qualified, because they are giant of low-cost opportunities. And we have built a material position in the last 5 years there, with the Mero development, which will produce almost 700,000 barrels per day with the Iara development, which has the potential to increase with operator Lapa. We have in our hand, it seems, according to my explorers, a unique high-profile exploration license that we intend to drill soon. And Brazil, by the way, is not only a matter of low-cost oil offshore. It's onshore, a growing market for Marketing & Services division for biofuel. So the attractiveness of Brazil for Total is -- it's an important country, large population, large markets, on which we intend to continue to grow. By the way, it's also a land of opportunity for renewables and power and for LNG. So Brazil is one of this country, which is -- will be the focus of the strategy for the next 10 years. I was speaking about exploration. People are asking us where do we go. You go with exploration and your climate ambition? How do you make all that consistent? I think it's clear that exploration will have also a challenge of transformation. Not to stop exploring, now please understand me, but to explore things, objects, prospects, which are in line with what we expressed, which is low-cost oil in terms of development, not in terms of drilling. And that's something on which I know that Kevin McLachlan is working hard with his teams. Of course, today, our portfolio is not clearly with this trend. It was built. It's long to build a portfolio trend, but I can tell you that the new licenses that we will acquire, the executive committee will be very clear about the fact that we want to dedicate up to $1 billion. We kept the budget, but with $1 billion, you can find all on these targets, which fit with our strategy. And I would -- I'm happy to say that today, we have a clear positive dynamic in exploration, and I pay tribute to the team, so explorers, in particular, with the Block 58 in Suriname where we entered last year, the 3 first wells have been 3 successes. They will have -- a fourth one is coming, and there is more to come in 2021. We have a number of prospects. We will have to appraise all that. It's [ lighter ] for the time being with gas. But honestly, the challenge we have in -- given to us as we become operator very soon of Suriname is to do as we have done in Angola. In Angola, we discovered in 20 -- 1996, it was into production in 20 -- 2002 [indiscernible] And it's possible that this is a Total block. Block 58 could be a golden book as Angola. And so the challenge will be to put into production Suriname by 2025, even if it's a short and quick development. So that's somewhere in which we work and which will fill the future growth. Again, if it's giant, it will fit with the strategy. Just to finalize on all because, again, it's a core activity for Total. Don't misunderstand my message today. We have a portfolio of projects, which have been sanctioned in '19, which we'll have sanctioned today this year, and which will come tomorrow, Brazil, Gulf of Mexico, Nigeria, Angola, and one of them being Uganda. As you noticed, we have been quite active to act countercyclically. We made a deal with Tullow, which was this year better than the one we stopped last year. So we were right to stop and to relaunch. We have benefited from, I would say, a good hearing from the Uganda and Tanzania authorities, maybe because also the condition -- economic conditions are lower. So we are working on this one. The tenders are expecting this month. And we hope we'll be able to -- our target is to sanction the project before year-end. All these projects, of course, when we sanctioned them, we review systematically the CO2 production and the way to -- if the teams are really -- designed the project to minimize the emissions. And because part of the climate ambition is to ensure that our investment in all projects are consistent with our climate ambition. And in particular, we look carefully to the carbon intensity of the project, but also of the returns. You can see that the portfolio of projects we have, all the projects have a return of more than 15% at $50. And the average technical cost, OpEx plus amortization, is around $16. So again, in line with the strategy. Just when we speak about production or we must speak about Scope 1 and 2, because it's like on gas, I spoke about methane. We need to diminish our emissions. We set a target last -- beginning of last year, of the beginning of 2019, yes, of lowering our emissions down under 40 million tonnes despite the fact that there is an increase of activity, I would say, by 2025. We are working on not only on that, and I confirm that we'll reach this 2025 figures. And we will maybe revise it, but we need to work. What we have done this year is to mobilize all the teams. And recently, we took the opportunity of the 5-year business plan to ask them to come with projects to reduce. They proposed too many initiatives. I would say, 500 emission-reduction initiatives. Some of them were at $1 per tonne of CO2, some were at $200 or $300 per tonne. There was a whole spectrum, but we took everything. We didn't took everything, to be honest. That's not true. We put in our 5-year business plan all the initiatives that were under $40 per tonne, because it's a metrics we have selected. The others are not forgotten. We will have to work for them to continue to relentlessly lower our CO2 emissions. But what I think is that I was very pleased, to be honest, with the results, is that we have asked, again, all our engineer and technicians to engage themselves. They have many ideas. We can cross-fertilize because some ideas which came around from one subsidiary could be used in another one. So there is a good -- great potential to lower the Scope 1 and 2 emission. And I'm confident we'll reach the Net Zero by 2050 or sooner even. The other activity we have is around carbon sinks where our teams -- we have established 2 teams, 1 working on natural-based solution, the other ones on carbon capture and storage. You've noticed that we entered the Northern Light project. We'll not spend time today, but in February, I promise you that we'll come back on this Scope 1 and 2 emissions, the way to reduce them, the way to offset them by carbon sinks. And our colleagues will have the opportunity to make you some presentation, but we took the choice today not to be too long because of this virtual exercise. And last but not least, it's like in gas, we speak about methane emission and when we speak about biogas, hydrogen. On all, we speak about Scope 1 and 2 of the reduce emission. And we speak about the biofuels because it's a way to decarbonize oil. And Bernard will make you an extensive Zoom on our ambition in renewable diesel. I will not be long there. Just to tell you that first, we had a very -- a first good experience in La Méde. It's profitable, $350 per ton on -- in the La Méde of cash flow from operations. And so it's a profitable business, first. Second, that the refiners have one advantage that can easily convert refineries, existing plants into biorefineries, so it lowered the CapEx. So we have there clearly a role to play, and Bernard will explain to you that the ambition is to be among the top renewable diesel producer, reaching a minimum 2 million tonnes by 2025, if not 3 million and 5 million by 2030. So it's finished for the part of the menu, which we are increasing energy in gas, electrons and liquids. Now I'm going on reducing part, which is reducing emissions, and in fact, more importantly, adapting the energy sales to the market evolution, which is what I will focus now with a few slides in order to give you more details. So first, that means that fundamentally, it's not at least -- when we said that we are willing to be carbon-neutral together with society, people say, "Oh, it's a way not to do it." No, it's not at all the case. What we intend to do is to actively shape the demand by working with our customers, by pushing them to shift their sales to gas, their sales to gas and electricity or biofuels in power generation, in mobility and heating. In power generation, we took the decision not to sell any more fuel oil to power generators from 2025. It's a way -- of course, we don't want to lose the customer, so we'll have to work with them, to adapt the system and to convince them that they can produce electricity with better tools. And in economic ways, we can develop storage solutions. There is evolution of mobility on which I will come back and heating as well. There is where some business to be done with our customers. So it's a real engagement of the companies and the people, the teams in face of customers. Because, by the way, all customers themselves, most of them have the same ambition to go to carbon neutrality. So we meet together. We are in the same boat, I would say, to work in the same direction, bringing our expertise in, I would say, energy sources and their own expertise of their businesses. So this is a few things. I will focus on, I would say, mobility and evolution of mobility going from oil and gasoline and diesel to other ways to run cars, planes, boats, biofuels. It's not only a matter of producing. And Alexis will come back on it. We want also to grow our sales of biofuels in Europe, of course, where we are already the largest biofuel retailer, but also in the rest of the world. I mentioned Brazil. And biofuel should represent 10% to 15% of our fuel sales by 2030. Gases for mobility is another axis of development. LNG for bunker fuel, we have been active. We are not only active. We have contracts. Now we have some bunkering barge in the North Sea, which had been launched last -- this month, I think. We have also natural gas for transportation. We have a position in the U.S. for clean energy, where we are a shareholder, but also we developed positions, in particular in Europe. In Europe, we think by LGV and NGV, natural gas vehicles should be mixed to biomethane. We think that's a market that will evolve quickly to bio NGV rather than just NGV. But we also, when we think to develop in our position in India, where we are developing with Adani in the city gas, there is where -- there is a good opportunity to develop, and there is a policy by the government, a policy to develop CNG. In fact, in India, we intend -- the network we intend to build will be around an CNG stations. And hydrogen, last but not least, few positions, in particular, in Germany. We are part of the H2 mobility ventures. There, we need to accelerate, and it's part of this new economy of hydrogen, but Europe wants to establish. Total will be one of the player of this hydrogen economy. And last shot, but I will not be long because there, again, you will have a Zoom on electric mobility by Alexis and Philippe. The idea is fundamentally to take advantage of this emergence of this new business, huge growth by 2 ways, either to produce to manufacture batteries together with PSI. We had expertise of staff. And on the other way is to establish ourself as a leader on EV charging segments. You have probably noticed that we have some successes by -- in large European cities, Amsterdam, Brussels, London, now where we have acquired half of the existing charging points in the city of London. Again, I'll let Alexis delve in that chart later. So all these evolutions on the demand will translate into the ambition of Scope 1 and 2 and 3. This is the one announced in May about lowering our carbon intensity of the energy products. I would just like to remind a comment on it, just to be clear again, and it's because a small chart on the right you all know that it's better to repeat. When you -- when Total sells jet fuel to an airline company, the airline company is using the jet fuel to make a flight on 1,000 kilometer journey. It will emit 22 tons of CO2. This 22 tons of CO2 are Scope 1 of the airline company. They are also reported in the Scope 3 of Total and the Scope 3 also of the plane manufacturer, in the Scope 3 of the engine manufacturer. And so I know that for many people, oil and gas companies are so responsible for all Scope 3 emissions in the world. It's not the reality. And one more importantly is that the chart for business symbol. But if we want to tackle the aviation, energy demand and challenge, it will have to be done together. We have to make coalitions. And each company, which is on this chart, will have to bring his expertise to find solutions, and of course, the leaders will be -- each of them or each of us -- each of these companies in those segments. So today, on the top of the May commitment, we have added what I have announced at the beginning of the presentation, the fact that the evolution of the sales pattern I just described by adapting or refining all product fuels. More natural gas, more electricity will be translated into commitments, 1 for Europe, minus 30% by 2030 on our way to Net Zero by 2050 and worldwide 2030 lower than 2050. So I have finished all the dishes. Now I go to the desert, which is the last part, to speak about, okay, this is our strategy, broad energy company. We have some insights. Let's see what it gives at the end of the day in terms of results. With 2 words, which are, for me, and for the Board -- it was a conclusion of our last Board, by the way, by one of the Board members. He said -- at the end, finally, it's a matter of resilience and a matter of growth and to be able to combine both resilience and growth in developing Total and convincing investors. So of course, you know the fundamentals, the resilience is based on these 4 pillars. HSE delivery, cost and cash that we repeat, it's well into action in the company. The cash breakeven is under $25 per barrel in 2020. We intend to remain at that level. So that's the basics when you are in a commodity business. We have to keep the discipline, it's clear, in particular, on capital investments. This strategy, with the strategy we have announced, we spent a lot of time to review, of course, our 5-year business plans to know what can we make. On one side, we need to give the space and enough capital expenditures to grow this renewable and electricity business. On the other side, as I said, we want to grow the LNG business and to maintain our core activity, which will give the future cash flows. We came to the conclusion that we can do it with '22, '25. I will explain you why I make an exception on '21 at $13 billion, $16 billion, depending on the oil price, $50, $60. There is some flexibility, I think, one of the lessons of last year. This year, it's dangerous to give a very precise figures. We have to be flexible and to keep some flexibility in the way we monitor our CapEx like Arnaud and his teams are doing on the short-cycle projects. We need to keep that in mind and not overcommit ourselves. We have introduced a floor of $2 billion, as I said, for renewables and electricity. So we said, we will spend the $2 billion per year minimum from 2021. In fact, it's exactly the amount we'll spend in 2020. I'm not sure, for maybe a little more. We'll see, but we are in that range. And so with $13, $16, we can develop the program I have presented to you. 2021 is a different approach. We don't want to launch a budget at $14 billion and then asking our teams in March to diminish it. I know it's quite a burden for all our teams, what we have done this year to resize all the budgets around the world. So we prefer to start, I would say, at a level which is cautious, I'm clear. It's coming from the top. Let's spend EUR 12 billion. It's mainly organic cash flows, because we also know that in these times, selling assets -- it's not a very good time to sell assets. We don't want to lose value. So we'll start and build our budget on around EUR 12 billion. We'll see after the end of this exercise. We'll come back to you in February. But of course, if there was a quicker recovery, we'll be able to activate some of the short-cycle projects which are in the end Arnaud and his teams, which we put for the time being on the back burner. When we think about CapEx and OpEx, cost reduction, but clear that this year, we have accelerated, I would say, our saving programs. We announced in February EUR 300 million. In April, we told you -- April, $1 billion, we increased it. But I can confirm to you that we are on the track to deliver the $1 billion of savings in 2020. So mobilization is very strong in the company. And we have decided to raise the bar there also and to raise it by another EUR 1 billion for -- by 2023. Of course, it's more and more complex because the company is, I would say, well-managed. To be honest with you, if you would ask me if I can lay off 5,000 people, I don't know where I would find them. There is no way in Total. It's, by the way, I'm still convinced that the best way to mobilize -- and if our teams today are delivering the $1 billion, in fact, we told them, okay, we don't frighten them by speaking about lay off. It's a review concentrate on delivering from your assets and delivering the cost savings. And the company will be there. It's a matter of mutual support, but let's mobilize ourselves. And we have the way to weather the storm. I think this is a strong message in the company. And again, yes, there might be room to streamline headquarters, 10% maybe somewhere but not more. And today, priority is more, again, to continue to optimize operationally in digital. We have launched, last year, and we presented to you back in February, some digital initiatives. We didn't cut anything there. We continue full speed to deliver this $1.5 billion value, which was proposed by -- promised by the teams. We have taken some immediate decision to freeze oil treatment, which is a way to save some cash. Of course, it cannot be long term. But again, my message there is that we will deliver the $1 billion and the extra $1 billion by 2023. So coming to the end of the presentation, just to wrap up what we said about the production, which is [ feeding ], again, the Upstream production is key because it's, I would say, most of the cash flow is coming from this production. So on the 2019, 2025, we propose you a figure, which is a little wrong. And on average, it will grow by 2% per year. In fact, like we told you last year, there is a sort of plateau between 2019 and 2022, and the start of the ramp-up will go from 2023. In fact, '23, '24, '25. So this 2% per year, which make more or less 10% to 12%, it should be spread more about 3 years than on the 5 or 6 years, which is there. But it's just to give you -- of course, it's lower than last year, to be clear. Because last year, we were thinking to acquire Algeria and Ghana assets from Anadarko. We took the decision not to do it because it was part of the, I would say, savings we had to do. So we have lowering our ambition by 2025. But we have also, as we described, a portfolio of opportunities, which will allow us to grow our cash flows. The quota impact has to be noticed as well. This is why I'm prudent on the coming years. This year probably, we'll end up by around 2.9 million barrel of oil per day because that is good news. The OPEC countries and non-OPEC countries are really implementing the quota. So it's good because it's supporting the price. Of course, the growth will mainly come from products from LNG, as I told you already, and the growth is also helped by the fact that we have quite a low decline in our portfolio because of long -- about 50% of production in long plateau, which results in growing cash flows, which is the blood of the company. So this chart, you can see that last year, by the way, we told you we'll have $1 billion per year of extra cash flow. This year, we're somewhere about $5 billion because there, again, it's difficult to speak of per year because next year, we propose you at $40, so it's not linear. But when we took the last 12 months, the average is $51. And the year 2025 of $50, and we compare the cash flow generated, the growth will be $5 billion at $50. This is the amount of cash -- additional cash flows. But it will be different, it's not the same $5 billion than last year because we have less production on the Upstream part, as I just said, but we have more electrons, and the electrons and the electricity business will deliver $1.5 billion. So in fact, it's not that we are back to the $5 billion, but not in the same way. We demonstrate, by the way, but decided to drive the strategy to accelerate the strategy to become a broad energy company is delivering same type of results in terms of additional cash flows. You can see the sensitivity. Another comment on this chart, $40 per barrel. Why did we mention it there? That should give you an indication to -- on which basis we say that the Board confirmed that we support the dividend at $40 per barrel. And you can see that, by the way, if we are able to weather the storm at $40 per barrel, we will also benefit in the future years of the growth we are expecting from our businesses. This leads to this chart that you know very well. The cash flow allocation for Total did not change in order of priority. The first priority is capital investments. We have adapted it to, I would say, the strategy. It's -- we just said $13 billion, $16 billion, '22, '25, more than $2 billion of renewables and power. The second priority is supporting the dividend of $40 per barrel. And I confirm you that after having done the 5-year business plan, the Board spent some time to look to various scenarios, confirmed the support. And then, of course, in this, I would say, difficult times, it's not easy to speak on the medium and long term. It would be premature to speak about growth. But the next priority will be on the balance sheet. And we also have always said, today, our gearing is growing up, of course. It was under 20%. We'd be probably around 23% by the end of the year, I think, which is acceptable. But if we have additional cash flows, we will dedicate them after capital investments to deleveraging the company and going back under 20%. This will be the next priority. And if we have more, we'll have time to discuss, we'll be flexible, share buyback, dividend increase, but let me be clear, priority is today supporting the dividend, investing in the company according to the strategy, supporting the dividend at $40 and gearing under 20%. It's not -- I know that for shareholders today, it's not only a matter of dividends and returns, cash returns. It's also a matter of ESG, and the -- a lot of you investors attach importance to this ESG commitment. A corporation like Total has to be a responsible company in all its dimensions and to bring to society, not only benefits and profits, but more than that. I would first notice that Total has been, this week, announced -- designated by the UN Global Compact as a lead company. In fact, we are a lead company for the last 3 years, which is a good recognition of the efforts we do in that field. Of course, my whole presentation isn't -- was about climate change environment. So the E of the ESG, I would say, I covered it extensively during 1 hour, Net Zero. We are publishing today our new climate report, the annual climate report. At the same time, we have published yesterday our new and updated biodiversity policy because this is the other big challenge for the planet. And so I would say we are covering as much as we can the E of the ESG part. So social is as much as important. I mentioned to you that we will go through this crisis with no big layoff. Solidarity, mature support is the real value of the company. And I think it's a demonstration of our social engagement. Safety was explained to you, presented to you by Arnaud. And I would say a word about diversity. Gender equality in Total is a reality in terms of salary and pay, for sure. In terms of responsibility, we can progress. We have progress, but we can progress more for international managers for women as well. So that's a focus of -- on the -- of the group on which we have set some objectives as a management. And the G, the governance. I would first, I remind you that last year, maybe it was -- it's not an [indiscernible] the fact that the Board has submitted the general assembly of shareholder. It was voted, new bylaws which gives new duty to the Board. It's in return. It was well done already to oversee social and environmental stakes. It's part of -- on each project. So we take care to -- and the Board is very interested to understand the condition in which all this social and environmental stakes are taken into account in the project we submit for approval. In terms of governance, I am Chairman and CEO like traditionally in the French companies, but we have a lead independent director, which is quite engaged. It was Patricia Barbizet, now it's Marie-Christine Roquette. And she's directly engaged with shareholders and she will have some roadshows herself, independently as the Chairman and CEO, and she will report to the Board and she's very lively. And last, but not least about governance, my compensation is linked, not only to climate, also to ESG indicators. So I think this ESG approach is well embedded in the model and the governance of the company. So about the last slide, coming to the end. Again, summarizing, I would say, the compelling investment case, that is Total. What we offer to you today is on one side, to transform Total into a broad energy company, which will really taking onboard the commitments on the carbon -- getting to carbon neutrality with a strong commitment on Scope 3 absolute targets. We will grow, but at the same time, we will have -- we'll be able to tackle the dual challenge. Growing on one side, profitably, of course, while decreasing emissions, more energy and less carbon. And you have noticed that we still come from LNG and renewables. And of course, at the same time, we are offering that strategy to this concept of a broad energy company, profitable board energy company, and we offer to investors a high-yield dividend, I can say. And we intend to support it as much as we can. And so this, I think, and the Board is convinced, but what we call Total energies with a big S is a real compelling investment case, which should support stock creating. Thank you for your attention, and I propose that we'll go to the Q&A.

Thank you. Ladies and gentlemen, the first question comes from the line of Jon Rigby from UBS.

So a couple of questions. The first is on the -- getting some sort of assurance around the investment that's now going into the renewable space. I can see the strategic rationale. It's clear. And you do talk about it being lower risk. But I think there's clear examples in the past. You are one of them with SunPower, for instance, where it's clear that the company entering a new area of operation doesn't fully understand all the risks that they are dealing with, and that's not an accusation to yourself. I think others have found the same issues. And so what I wanted to ask was -- is to what degree and what assurance can you give us that you are comfortable that the risks you're taking, you have been able to sort of incorporate into your planning? And I'm sort of very struck by what looks like increasing sort of conventional wisdom that 5% or 6% return on assets can be grossed up to a 10%-plus return on equity in an increasingly competitive environment. So I just wonder if you could just talk about that in the round. The second is, if you're correct, however, I'm struck by the capital structure you described at the end. So driving gearing back down below 20%, reiterating the dividend. Does the capital structure in the way that you do with capital going forward change as the business mix changes through the 2020s?

Jon, I think that first, on renewables, again, Philippe will come back extensively. And I think that we are engaged in this business not from today. We made some mistakes. The first investment in SunPower was not the best idea, but since 2016, we have built teams. We have invested in Total Eren in a minority position to learn, to better understand, to evaluate, to see because Total Eren is driven by experts in renewables. So the CEO was the previous CEO of EDF Energy, new energies, which one of the success leader of the bill. So we have made that investment. We have made some direct investments and recruited people. And I can tell you that at the executive committee of Total, which is meeting every 2 weeks, and where we approve all investments above EUR 20 million, I think in that [ fair ]. We have, I think, every week now, a renewable project. So we learn and so it's accelerating and advancing, but of course, we are asking more and more comfortable. And if today, I am able, for the first time, in front of you, to tell you, yes, we embark in this board, it's a new strategy, and we are able -- I use the word transform, and we will push -- we have ambitions that we put into -- in terms of net production of the equivalent of 500,000 barrels per day in 205 years, [ barrels ] and byproduct, is because as the CEO and with the executive committee, we have the feeling we have. But we analyze the risk of those projects. It doesn't mean that -- by the way, it's true that we have to anticipate, what does it mean a world, an electricity market in Spain, for example, where you will have so many solar plants, intermittents, going to the grid, and all producing when the sun is at the top and less when -- I mean, there is -- in the night, there will be, of course, an intraday volatility, which could be huge, which, by the way, means that it's why the word storage appears in the presentation, and we have, remember, acquired staff with the idea that it will be helpful to develop energy storage capacities in the coming -- in the future to develop the renewable business. But it's clear that the electricity world, not only for Total, for everybody, will offer new patterns, which could -- with new risk. It's why, by the way, we need to be very strong as well, developing our trading teams to be able to interconnect the market and to deliver the value out and to manage that risk. So my -- if today, we are able to shape that strategy and to show you some figures and to give you some objective, 5 years is not far from there, or it's tomorrow. It's because we consider that we have a good understanding. I would not have done that presentation even 1 year ago. But we have, again, accelerated, and our teams are delivering to us more and more projects. So that's the first question. And honestly, on the return target, I don't lie to you, Jon. I can tell you, the model works. Of course, let's be clear, it works because there is, today, very low interest rates in the market. That's clear. But I will tell you is interest rates are coming up again. If the project will not be developed at 5%, then we need more, not only for Total, but for the competitors. So that's clear. But today, you are in a specific situation where you can leverage this very low interest rates. And at the end, all the equity we engage and the 10 gigawatts projects we have announced this year, have a return of 10. It's a minimum because in India, it was 13, Japan 20, I mentioned. So you have more. So it's -- there is no miracle. It's just the situation of having access, I would say, to capital with a very -- I mean, to finance with very low interest rates. I don't know if I -- this capital surcharge has changed as business change.

sort of the balance sheet and sort of pay out.

The question, honestly, I'm not sure if I captured it. Sorry?

Is the -- it was -- the sort of follow-up was that the capital structure that the idea of where you want gearing to go, where you see the dividend is sort of couch still in very much in sort of oil and gas major terms. Meaning is that going to still be the case? Or would you look at different capital structure models as you go forward because the business model changes?

Yes, but no. I think to be clear, Jon, I think we cannot shift from 1 day to the other. I'm convinced that we are, today, our challenge is to convince the investors that the model we propose, which is to create this multi-energy company, this broad energy company, having some -- on one side, oil and gas and electricity and renewable is viable and that we can develop. We need time to do that again. And to the time, I think what we think is the best position for this transformation for us as an oil and gas major, but we still are, and we intend to remain. We don't enter into a decrease of our oil and gas business. Even if we stabilize in 2013, the oil production could be a little lower. This is not what we offer. We need -- I think we are offering to investors 2 things: on one side, a dividend high-yield because it's a way to tell us give us time to do that, and we will continue, and trust us and give us the time. And at the same time, let us, allow us to reinvest part of the cash flows in growing this renewable and power business. So it's premature today to say what you propose to change the payout, et cetera. I think this is -- and again, we do it because we consider, but we can do it in the financial balance of the group, of the company. And this was the whole exercise we have done since in the last 6 months. We understand at which pace should we invest in order to grow at the -- according to our ambitions. And so with the structure of capital and spending, we said, we can, at the same time, offer this, I would say, maybe unique model, but we want to offer to the market and to investors a high dividend. And at the same time, giving us the time and the money to change the pattern of the company.

The next question comes from the line of Martijn Rats from Morgan Stanley.

I had 2, if I may. The first one is about expressing your total energy production in that figure of petajoule per day, which I really appreciate, and I think is hugely interesting. We, ourselves, have done some analysis on expressing the financials of a broad range of energy companies per unit of energy, per joule. And one of the things that struck me in this analysis is that if you look at companies that are more in the renewable space or the utility space that their capital employed or their CapEx budgets per unit of energy, per joule, are hugely higher. They're about sort of 4, 5x higher than oil and gas, which is already a capital-intensive industry. So now sort of going through these numbers, I tend to delve, frankly, since the capital intensity is so much higher, maybe we should just expect that over time, the total energy output of companies like Total and your peers, that they will actually just shrink, i.e., there's only so much CapEx that goes around. Just if you move into a more capital-intensive area, maybe just keeping up total energy output might just be simply too challenging. But today, you're presenting a sort of kind of sort of contrary sort of view to this in the sense that, not only are you talking about total energy production going up, but then seemingly also moving into these very capital-intensive areas. Now we often have discussions about what are the returns that lie on the other side of all these investments. But the transition itself is also quite interesting in the sense that it sort of suggests sort of quite a large CapEx hump, a period of very rapidly rising capital intensity. And I recognize that this is quite a long-winded way for asking, in principle, a relatively simple question. But are you sure that $13 billion to $16 billion in capital expenditure is really enough to make this -- the changes to the business mix that you propose, rising total energy output in more capital-intensive areas? Is this $13 billion to $16 billion really enough for that in the long run?

Again, for the next 5 years, the way we have done it, I can tell you, it's a clear approach where we looked to what is the amount of equity we need to inject in all our renewable projects in order to grow. So we have made it. And we know because we have, again, between -- we have various models between the Indian projects, the Spanish projects, French ones. So today, we have various models. So we are able to have a mix and to have a good evaluation of what will be required. And as I said, to grow at this pace that we propose to reach the 35 gigawatts by 2025, we need $2 billion plus, I would say. We put that as a floor. And we look also to the rest of the company to look to what can be arbitrated or not without impairing, of course, the cash flow of the company. And that's -- the results that we gave you are a clear, I would say, bottom-up approach of the organic CapEx that we need. Then there are assumptions about acquisition and divestments, which are giving you the capital -- the global capital investments. But yes, I'm confident with this figure. And again, it's clear that -- and that's the advantage of being a -- not a utility, but maybe an oil and gas company is that we have the average of the oil price. And so is the price going up again? It will go up [ again ]. We'll have extra cash that we can allocate in order to monitor this Capex, why we give you a range. But yes, Martijn, I'm confident that we can stick within the $13 billion, $16 billion range. It's also true that doing that, we have made some arbitration in some segments in line with the old strategy, I would say. So we revised the old assets that we have, not only in Upstream and in Downstream as well to say, "Okay, what do we want to do in this segment? How much do we allocate of capital?" And because the demand will change, so why should we invest in many retail networks if we think very well demand will lower? So that's question mark. So there are some arbitration behind it in line with the strategy, but no, I'm confident on it. I think on the first point, again, I -- the many -- I tried to spend a lot of time myself, I can tell you together, to read the reports of all our competitors and the utilities competitors, their financials, to better understand their metrics and to be -- because we wanted to make a presentation where we could find the metrics, which could be consistent. To be honest, where -- the notion of CapEx is not maybe not exactly the same, but us there, I have the impression, if they take the full CapEx, I would say, the gross CapEx, we take the net CapEx. When we give you a CapEx figure, this is the equity part we take into our CapEx figure. Of course, the off-balance sheet is not in the CapEx figure. Of course, that means that the off-balance sheet, I'll be clear, of Total will grow. But from this perspective, our -- we have a robust balance sheet, I would say. And at a certain point of time, it will not go indefinitely because you will recircle your leverage because once your projects have been delivered, you can after 6, 7, 8 years, you are recirculating the same amount of balance sheet commitment. So I would say that's the way we look at it. So I'm -- but I'm pleased that you support the petajoule-per-day approach. I hope that all your peers, which are participating in the call, will do the same. Yes. To be honest, I have difficulties here, too, to transfer all that. Okay. Next question.

Your next question comes from the line of Lydia Rainforth from Barclays.

And then I will get used to petajoules as well. Two questions, if I could. The first one, on the tech center that you're establishing, can you just walk me through, how is that different to the digitalization factory that we were talking about back in February? Does this build on that? Or are they 2 completely separate areas? And then the second one is -- and it's linked a little bit back to Jon's question earlier, there is a lot of change within Total. You are accelerating that change. How do you prepare the organization to perhaps move more quickly than it has in the past? So for example, you talked about Africa and wanted to build up the renewables capacity there. How do you do that quickly enough now? And effectively, does that decision-making process need to change from what it has been historically?

Okay. The first one, no, it's different, Lydia. Maybe I have not been clear. The Digital Factory is purely dedicated to digital. Of course, it's working for all the divisions and the Upstream, refining and chemical, marketing and service. It's established. It's a new tool, 200 engineers going to 300. We don't want to disturb them. It's brand new. So we'll let them work. They might be, later in the future, we'll see, but we don't want to disturb that. They have to deliver. We have some, I would say, a road map of many business cases, which are, by the way, given to them by the assets, not by the technical centers and technical divisions. So of course, you can think we can merge everything. This one we tend to protect because we want -- we have a clear objective for delivering value by '23, '25, and we want to build it to raise it. Maybe later, we'll see if we need to bring them. The technical center, we want to take, the 1-take concept is really to take all the divisions which are supportive of operations and projects in E&P, in refining and chemicals, in marketing, they are more -- not so many. And in gas renewables and power, they are quite minimum, but there are quite a lot. There are some hidden competencies somewhere in the direct subsidiaries. And to bring all together in order to be able, again, to use existing the competencies to build this industrial bases for our gas, renewables and power. And also for, I would say, training, helping them to -- in terms of evolution of competencies, so that's a different approach. But again, the idea is to have a core center and I would say to use the existing competence to build our renewables board and power business. To Philippe, you take the second one? Renewables in Africa. What do we need to do? I will tell you what we need to do is to change the regulators of electricity in Africa. But...

Yes. Clearly, it was stated, there is a real potential of developing renewable in Africa because mainly with solar, we can compensate for the lack of development of the grid, and there is a lot of sun. Having said that, with our costly project, yes, they are capital-intensive. And so we need to have a stable scheme in order to invest on a profitable and safe basis. And therefore, yes, the negotiation are taking place with the various governments in this continent. And there are some small projects that are now being developed. We have some plans already in South Africa. There are some under development in other countries. But yes, this still takes time because, yes, we want to develop this business on a profitable basis.

But your question is good, Lydia, just to add something. I think until now, we have developed a renewable business, I would say, as separate teams. Many teams and trying to answer, as I answered to Jon, to better understand the business, to Africa, for example, has been it's Total Eren, which is in charge of Africa, which has its own objective. And it's clear that in Africa, honestly, I was joking, but we face, in fact, where we were trying to make gas to power plants I remember in Nigeria, I think Arnaud has worked hard on this type of project like myself. We face the fact that, unfortunately, financing a power business in Africa is quite challenging. And in fact, we could hope that with renewables, which are smaller projects, it could face, which could solve the issues, but it takes some time because people are not prepared, in fact. So that's a challenge. But I think also that is signal because today is a very important day. As I said, we have announced to attempt the concept of 1-take. And I think a lot of my employees, I think, around the world are listening to what we say. And I'm convinced that there is a signal there that these renewables and power are absolutely part of the business model of Total. And so when we'll go tomorrow, I've been in Angola. So I can say because there, our MD is already taking care of our solar projects. But when we go in all these countries, it will be obvious for management locally but they have the right even if they are in charge of E&P to look to renewable projects, and we're a driving force, and then maybe we'll go quicker. So I think some [ of which ] phase would be enthusiastic. You know what we've done in Qatar as well has been on the same source of philosophy. So my view is that the signal is launched today that, yes, we are embarking in this strategy on a worldwide basis. And I'm sure more and more ideas will come and people will embark into because they are all willing to contribute to this climate change challenge.

Our next question comes from the line of Oswald Clint from Sanford C. Bernstein.

I wanted to ask a first question on integration across the electricity value chain as well. But more specifically, on the final side of the customer side. Now I want to get your thoughts whether you think you need to have more big customer and partnerships to really maximize the value in this chain. You -- I mean you talk about retail customers in Europe, but I wanted to see if -- do you think that's enough? Or you should be focusing as well on some of these big global corporates, like, for example, some of these tech companies and just offering them global power contracts that utilities can't. I mean, I know you have 60% of your customers in Europe, and that's your base, but there's a lot of competitors that are also trying to sell them clean power. That's the first question. And secondly, it's good to see the current conviction around the gas and the LNG. But I wanted to zoom in on India. I mean, a lot of LNG import growth in LNG expected in India. You have a position there with Adani, but a little bit tricky for us to see just how profitable that value chain, LNG value chain is in India. The Indians' clearly very good at getting low LNG prices. So I wonder if you could perhaps share a little bit of color around that LNG supply chain as it relates to India, please.

We'll leave Philippe answering to the India question. On the first one, I'll be clear, with Philippe as well, we are working with the same big companies. These big tech companies are very good to make competition. And so today, they want to sell the cloud to Total. And so they access the cloud to my colleagues and selling sections of the cloud. They all want to. They are ready to take 50 megawatts of solar plants, which is not enough. Now but we have this type of discussion, obviously. You have noticed probably that we have done something last week. Philippe will come back on it. This -- in his presentation, something quite original. We have assigned to ourself, it's ourself the largest corporate PPA between solar plants in Spain and all our European plants in the company. That means that we have designed a model where -- and the intent is to offer it to big corporations that we have done it for ourselves. So we know if we can manage the risks of such a contract. And so the idea today, of course, is that you'll to need to do it with Total, but we have done it for us and to go, and we have some discussions, to be clear, corporate levels at high corporate levels, sometimes CEOs are involved themselves in other. Because all -- there's a lot of companies, not only the tech ones, who are willing to green their electricity. Everybody is committing today to carbon neutrality. And so this is a business, which will lead to what we call corporate PPAs, which will probably the next wave of 1. So on these ones, yes, we are willing to develop partnerships. At the end partnership, they are big words, but at the end, it's what do you sell to me and what do you buy to me? Let's very be clear. I'm like for ownership, but it's more immaterial because none of them wants to be really, I think, in the end, on only 1 supplier. The -- none of them, even if they like to establish monopoly, they don't want to be in the end of an employee in front of them. So that's -- but again, that's clear. It's part of the -- and that, by the way, it's back to something on which -- but I don't know, maybe Philippe will come back on it. It's all what we call the Solar Distributed Generation business, which is not big solar farms, but I think Philippe will come back on it in his presentation. So I will leave him to. India LNG value chain?

India, clearly, we see high growth in even 2020, we see a very high growth in India, which is becoming one of the largest LNG markets. So development is already a reality in India. You have to be aware that we have been in India since now 15 years when we were partnering with Shell in Hazira and so we know exactly the behavior of the Indian customers. We have never been selling under the market price, I can tell you in India. What is clear is that when the prices are low, we are selling more LNG when the prices are high. But across the years, we've managed to fill -- to fill a 0 and to make profit during the years. And with the partnership that we have, we've had any with the fact that now, yes, we will be players inside India, and we see room for optimization and for profitable growth. We are confident that, yes, we can combine growth and profitability in India.

Our next question comes from the line of Thomas Adolff from Crédit Suisse.

Two questions from me as well. Just going back to your beautiful charts on renewable generation and how you're showing your target IRRs of more than 10%. I believe this time last year, you presented it as at least 15%, including farm outs. Looks like a bit of a downgrade here. Or are we talking about a wider range across the different geographies you've entered since? And the second question is relating to your credit rating. And correct me if I'm wrong, single A is probably the minimum acceptable to operate your business effectively. And if my numbers are correct, your credit metrics were consistent with the single-A rating in 2019, around 44% funds from operations to adjusted net debt. But you are below the 30% threshold in 2020 and probably less than 25% at least on my numbers using Brent at $40 and assuming cash flow after interest of $15 billion, $16 billion. So if we assume you pay your dividend 100% cash and no script and that $8 billion of CapEx is $13 billion, oil stays at $40 and refining margins don't recover as you assume. How do you drive it back to 30% in the next few years if asset sales are also difficult?

I will leave to Jean-Pierre. He can answer the second question. Jean-Pierre?

Yes. So credit rating. So as you know, Moody's and S&P dramatically changed their price deck. It was in March or April after the drop in oil prices. So at this time, we are able to maintain our rating. The change was their [ perspective ]. So we were before stable. Now we are -- we have a negative outlook. I just see -- I think it was mid-September that S&P maintained its outlook for 2021 and 2022 at $50 per barrel for price deck. And $40, by the way, for 2020. So at this level, I do not see any reason given the resilience that Patrick mentioned to you to be downgraded. So having the discipline regarding our gearing, having these targets maintained again, along 20%, I think will protect our credit rating. And I think that it will be well received by the agencies.

But if we stay at $40...

Okay. And if at that time, that means you are right, it was September 2019 when last year, I was looking to the presentation because I had always in mind my 10%. So that means that we'll come back to the question of Jon. We have learned in the year, and we realized that if we wanted to be successful, to get some projects, we have to accept to -- the target to have 10%, but at 10%, we are successful. I can tell you. This is what I mentioned during my speech. But at 10%, we have been able to get the projects and to put them in our portfolio. So that means that this is the right metrics that we need to consider if we want to develop the business. But the ambition last year maybe it was because we had more Japanese projects in our heads than some Spanish projects, I would say, other areas. But -- so the metrics that I gave you today, I can tell you, but at this level, we are competitive. In fact, let me be clear, it's always the case. If you go to be competitive in a stupor Middle East tender, where you have everybody is coming, I can tell you, at 10%, you are not winning. By the way, and what have you, we lost, but we win in Qatar. So that's different. But the idea is like always in the business, is to try to have direct negotiation. And what we've done in Spain, having access to 3 pipelines of 1 plus 1 plus 3 gigawatts, direct negotiations, and that means that you have to have the smart teams on the ground. You don't operate that from Paris. That means that, in fact, that's -- I would say, what could limit our -- the ambition is that what I observe is that in renewable electricity, you all know that it's a national approach that you need to have, national regulators. And to identify the good opportunities, you don't do that with bankers in Paris, which always come to you with the big M&As. But if you want to be smart, you have to have teams. So we have a good team. I can pay tribute to them in Spain. That's clear. And I think the more -- if we want to continue to grow, we'll have to put the teams in the various countries where we will think there is a development to be done. Clearly, we will establish something in the U.S. coming because there is, of course, big companies, but you have plenty of opportunities in the U.S. as well. So that's something. And last comment for you Thomas, is that that's true, that the returns are lower than -- for oil and gas, yes, but the risks are not the same as well. You know when you sign a PPA, which we are not going to use, so usually 15 years, in oil and gas, I have nobody which is giving me a predictable revenue. So that's chicken and egg, but again -- so I don't -- I will not come back to you with lowering my 10% next year.

Our next question comes from the line of Irene Himona from Societe General.

Patrick, I'm looking at priorities 2 and 4 of the cash allocation, dividend and buyback. You used to communicate in terms of the proportion of cash flow that was right in the previous strategy to return to investors. Today, you told us the dividend is supported at $40 gearing to come down. During this transformation period, and given your view that lack of investment may very well push prices towards $50 or $60, but of course, you need to continue to invest in low carbon. So in this new -- in this transformation period, what is the right proportion of cash flow that assuming you delever the balance sheet would be correct to return to investors?

I'm not sure I even expressed in this presentation a percentage of returns of cash flows. Having said that, honestly. This was a difficult part is where I made an introductory comment of coming to you today. You can understand that in these times where we are today, already Total and the Board of Total is quite bold by confirming, repeating that we support the dividend of $40. When at the same time, all our competitors in Eastern Europe have just given up on their dividend. So I think it's already a strong signal to investors that we are ready to maintain a high-yield dividend. Even if, as I said, the Board is expecting some stock rerating thanks to that policy. Going beyond, and at the same time, we do it, but it's true, but we are using the balance sheet as we are increasing the gearing. And so that means that the Board is, because as seen in the figures, the resilience of the company is ready to support. But at the same time, is thinking that the priority will be, and nobody knows how long it will be, I would say, to come back to a normal environment and getting out of this pandemia and this world crisis. So going beyond what we said, you need quite a short term and long-term view. I think what we told you today is already a strong message. The other strong message we gave you is that we will increase at 5 -- by $5 billion of cash flows in the same $50 environment between 20 -- this year and 2025. So obviously, the matter will be to allocate this capital again, first, and you can make the math. At $50, we need to -- we need additional cash flow to deleverage the company, and we'll be under 20% by 2025, more or less. That means that at $60, the question will be sensible. This is why we put on the same chart, but we can be flexible at higher prices. But that's not so easy to commit on the long-term of such metrics. I prefer -- I know that some of the peers have done it. But they have first cut their dividend. So for the time being, we are concentrated on maintaining the dividend. And I think it's the best message we can deliver to our shareholders.

Your next question comes from the line of Michele Della Vigna from Goldman Sachs.

Thank you, Patrick, for the clear vision on decarbonization growth and improved profitability. I have 2 questions, if I may. The first one is, if I can come back to cash return to shareholders. Clearly, Total stands out for having maintained the dividend through the crisis. But when I look forward at the numbers, the dividend yield effectively is costing you right now about 9%, and the cost of debt post tax is less than 2%. Now I perfectly understand the importance of a strong balance sheet. But given this complete difference between the cost of capital, effectively that your investors are charging you versus the cost of debt, wouldn't it make more sense perhaps to focus on buybacks rather than financial degearing at this juncture? And then a second question, perhaps a little bit niche. But when I think about your refining and chemical business, you are moving away from mega project, mega plants of refining and petrochemicals towards smaller ones focused on biofuels and biochemicals, which are more local. And where the economics really are driven by the local logistics of collecting and delivering waste in an effective way. I was wondering, do you think you have the right capabilities in-house for it? And do you think you need to change the way that business is run for this future reality with a bigger share of biofuels and biochemicals?

Okay. I take your point, buyback rather than gearing. I think, again, what we experienced to manage an oil and gas company with volatility, I think, honestly, we are sure, but I'm convinced that we'll see higher cycles. But after the higher cycles, with lower cycles. And so if we want to have a steady return policy to our shareholders, it's much better to -- I would say, to have the capacity to weather the storms like we are trying to do it today, like we are doing it today, by the way. It's a matter of trust. I understand the math that you mentioned and the Board has discussion about it, to be honest, and that's true, but today, it will be nonsense to go for looking for equity from our shareholders. And I prefer Jean-Pierre to go on the bond markets and maybe even the green bond markets that you need to tackle. This is the next challenge. But with all what we have announced, I think it will not be so complex to convince bankers to issue green bond market today with the total or sustainable bond markets will -- next step for us. But that's true, but it's -- but again, my message to you is that with all what we have announced, what the Board is expecting is a rerating of the stock, and so the yield should diminish. That's a good answer. And then buybacks might be an option. And the big debate is a debate, and it's why it's returned like that, will be, if you have additional cash buyback, it's probably better than increasing largely the dividend that was envisaged in the future. The second one, I would say, no. I mean, let me be clear, don't make a mistake. First, it's not because we have focused the presentation today on biofuels, but Bernard has abandoned the large Amiral project with Saudi Aramco in Saudi Arabia, which is progressing very well. We have all the allocation from the ministry. So it's not eminent. But having said that, it's true, but Michele, you understand, but Total will not build a new refinery elsewhere in the world. I mean, it's clear. It's out of earth. So we still have some petrochemical projects in Saudi Arabia. In Korea, the Korean platform, that's the core of it. And then the biorefinery. So a question for Bernard is, do you need more new -- different competencies to -- for biorefining? I would say that on bioplastics, in Italy, my -- our polymer business, people are very accustomed to the size of plants. We have done our first plant in Thailand. But Bernard, about competence and capabilities on these niche markets, what do you think?

One of the answer is the fact that we are going to slightly change the organization by creating a biofuels business unit with dedicated resources. That will be a team, which will be focused entirely on biorefinery and growing the business in Europe and outside of Europe, which, of course, requires certainly a different set of skills when conducting larger petrochemical projects. So we can lead the 2 strategies, I would say, both growing large platforms in petchems, and at the same time, yes, growing high value-added niches like biorefineries.

No. But Michele is giving you a good idea, which is to go and recruit some people in one of the good competitor in biofuels.

You are welcome.

To strengthen your new business unit. Okay. But again, I think, Michele, the size of the projects that we have in these biofuels and bioproducts are on the size of the polymer plant. So I mean, we have in the company, our chemical guys, our petrochems, our Belgians part of the company is able to build this type of small plants, not the French one. We love -- they love the large projects.

Your next question comes from the line of Lucas Herrmann from Exane.

Two questions if I might, Patrick, regarding the renewables business. Yes, maybe one of them is a little unfair at this stage. But the first was just on PPAs. Can you give us an idea as to all the projects you're developing, what proportion of the output typically is PPA covered? And the second is when you talk about 120-terawatt hours of electricity or electrons into the future, can you give us any idea as to how you'd expect that the end markets for those electrons to split? So how much do you think will go to EV? How much go -- might go to hydrogen? How much retail? How much corporate? I'm sure you looked at the different value chains and opportunities. But just to -- for us to get some sense of, yes, what are the markets that are going to be according value to the different streams?

So the first question is easy. The second one is for Philippe. I love the questions of Lucas. Now the first one is clear because according to what I just described to you, the instruction given to our teams is we want to cover with a 100% PPA. Having said that, it's clear that we have done one first exception with our entrants into the Seagreen offshore wind projects in Scotland, where, by the way, it was a long discussion, I can tell you with SSE. They wanted to sell us 40% PPA, 60% project. And we said, no. We want at least 70% and 30%, knowing that we agreed together. But the last tranche of production could be we will submit it to the next round for CFD in the U.K. So that's clear that this -- we had yesterday, again, a new -- another discussion with our teams, which jumped into a 70-30 business model and we told them at the executive committee level, "Don't go too straight because, again, what we like in renewables is not only the volume, but it's the predictability of the revenue." So this is what we'll explain tomorrow to our investors. So if you begin to go to quickly in merchant, it's -- I think it will be -- it might be okay. I -- so I think our objective is, honestly, is to maximize the level of PPAs. We can accept some, time-to-times, maybe 30%, but not more, as we had done it once, that sort of metrics. The second question, I'll leave it to Philippe because I know he knows everything about the math.

Lucas, on this question, I'm not sure if I have the right answer. But what you should bear in mind is that even if, of course, we spend a lot of time developing new markets such as EV and green hydrogen for the time being, which will remain a very limited part of the worldwide market or for electricity worldwide production. So if I had to give you a guesstimate, I would say that it will be some, let's say, 2%, 3% for hydrogen and maybe a bit more for EV. But clearly, the most -- the bulk of our production will, still in 2030, will go to, I would say, the overall power market.

So it's -- yes, I fully support the answer despite it's a complex one. It's probably a 45% retail, 45% corporates and then EV and hydrogen. Honestly, EVs, Alexis will speak about it. But when we look at the end to what does it represent to a 15,000 or 20,000 charging points in cities? It does not consume a lot, to be honest. So if you want to make money, it's not only through electrons. You have to source the service part of it, but Alexis will come back on that.

Just coming back on the PPA question. Can I just follow-up on the PPA? You mentioned earlier, you spent a lot of time looking at your utility brethren and what they -- how they report, et cetera, et cetera. They also have a tendency to give a fair indication of what the PPA levels and terms are. Might we expect that you will give better indication to the future of what the PPA terms are, so we have a better idea of what revenues are?

We might consider give you all the data sheets of Total, but we are -- or maybe not, we'll see. I will take the point, Lucas, and I will ask my colleagues to make a benchmark on the utility company's disclosure. And we'll look at it. What I propose Ladislas is that we take a last question or 2 before we'll stop to go to the Zoom because we have another session of Q&A, and I'm afraid, otherwise, we will extend until midnight. So I propose to stop at 4:30 like it was planned. So maybe let's take 2 questions before to stop, and then we'll move on to on the Zoom by Philippe, and then we have another session of Q&A.

Your next question comes from the line of Bertrand Hodee from Kepler Cheuvreux.

Yes. In fact, the question I had was exactly the same as Lucas in terms of PPA and American exposure. But maybe I'll try to find another one, which is in fact, when I look at your 2025 guidance for a low-carbon contribution, should I understand that, in fact, there is no implicit electricity price or American price built into that assumption and as you are, in a way, fully secured by the PPA? Is that a correct statement?

Exactly that. It's exactly that because, by the way, the Seagreen project, which is the only merchant for 30% will not produce in 2025. So it's exactly that. You're right. You have find the solution. Next question, but Bertrand, don't worry, we'll take all the questions from everybody. It's just a matter of time. Next question?

Your next question comes from the line of Christopher Kuplent from Bank of America. This will be our last question for now.

Could I squeeze in 2 questions, please? The first one, hopefully quick, Patrick, you were referring to countercyclical M&A. And I wondered in that $13 billion to $16 billion, how big a role net acquisitions play. You already mentioned that the $12 billion or below $12 billion next year is largely organic. But just wondered whether you could break down your view of organic spend versus inorganic. And my second question is a bit more philosophical, which is if you look at the renewable space, you've obviously got your own listed subsidiary in some power. You witness that free cash flow yields are pretty meaningless in terms of valuation metrics and the EBITDA multiples or price-to-cash-flow multiples trade at a multiple higher compared to where the Total group listing gets you today. So I wonder how you think around communicating better with different metrics that speak to the renewables growth, which, according to your own presentation today, will remain free-cash-flow negative for the foreseeable future. So I wonder how you're thinking around that project -- problem and whether indeed you think allowing the equity markets to have a clearer view in the way that you have an independent listing for SunPower is the way forward.

So I think on the first question, if I remember the balance between acquisition divestment is around $1 billion, I think, maximum. So that means that there is much of the CapEx we are organic, and there is plus and minus, which is $1 billion extra. Of course, it's linked to the possibility to divest, but this is the metrics we have put in this business plan. And if we want to acquire more, we'll have to divest more. It's clear. I would say, so that's the first point. On the second one, but we try to communicate on it, maybe not enough. I know that maybe it's not good to show that it's cash flow negative, but all of these renewable companies are cash flow negative, by the way, it doesn't matter. So the question is, of course, to, I think, clearly, what we try, what we have begun to do today, and we'll have to do more, of course is if we want to embed in the valuation of Total the valuation of the size of this renewable company, which compare, when we speak about 35 gigawatts compared to a lot of these independent renewables company, which are much smaller, have huge valuation, we need to give clarity on what we are doing. That's clear to attract these multiples also on this part of Total. So that's a challenge. Should -- so yes, we intend, I will say, to go to give step-by-step clarity on what we do, and I think it was the first step. And you have a slide where we have figures. But should we go to IPO? All that is very premature. It's not at all what we -- I explained to you. I just explained to you during one now that what we intend to do is to build a broad energy company and again, being able to have in the same company, on one side, the oil and gas business. On the other side, the renewables and power business. And we want to convince that this model because at least again, we are the renewables and power business is benefiting from the cash flows coming from the oil and gas business. So we have a good engine to make that transition. We want to really take time to convince the market that this is the right model. If we don't succeed, we'll see. But by the way, as you said, when we are building such a portfolio of renewable business, it will not be difficult if we think it's the best options to introduce -- to go in another way. But it's not what we intend to do for the next 5 years. So that is last for the viewers. And again, to all the ones who have questions, don't worry, we'll take all the questions, but after the 3, next Zoom.

All right. So thank you for this first set of questions. And now we are entering the second part of the afternoon with the focus presentations. And so we'll start with Philippe with a presentation on renewables.

Okay. So good afternoon to all. So my challenge is to convince you that we are not -- we are ambitious, but we are not dreamers. But let's start by the dream and by reminding you of the market and the growth that we see on this global solar and wind market. This year, we have seen, even with the COVID, a 15% growth. And this growth is clearly geared to continue with the greening of the planet and the carbon-neutrality mission that have been announced. The lion's share of this growth will be for solar. We see solar as being the cheapest technology in many countries around the world. But doing that, of course, we are over technology of interest. And wind offshore, in particular, for which we feel that we have a unique competitive advantages, should represent in 2030 around 200 gigawatt. So 5% of the overall market. What also is important to be noticed is the fact that around 80% of the growth is concentrated in 4 different areas: China for sure, which will represent more or less 40% of the growth; Europe being #2 with, of course, the Green deal gearing up via the market to high growth; and then in India and U.S. at approximately same level, 10% of all the growth. So no surprise if we are focusing our development; not forgetting, of course, other continents, South Africa, where we are also unique advantage still to be developed. But clearly, those 4 areas are the one in which we will have a greatest share of our business. One reminder about also our history in those businesses. Yes, it was reminded that we invested in [ San Patent 11 ] but was not maybe the greatest investment that we made. But we learned from this investment, and we started our renewed -- our new ambition and mission to become the responsible energy major. And we created Gas, Renewable & Power branch in 2016. We are very clear that we are more or less starting with a blank sheet. And so we needed to have, first, competencies, talents, assets. And there was no hesitation for us, but we needed to make some strategic acquisition. And this is what we made, and you all remember this acquisition of Saft, of Direct Energie, of Quadrant, just to mention the most important. But what we see today and what you see on this chart in '20 is that the growth and the number of deals is clearly accelerating. And it is accelerating just because, as Patrick mentioned, we have now teams that are competent and competent enough to fuel our growth with ideas, with what I would call, semi-organic growth. And this is giving us a lot of opportunities that are -- that we can exceed on a very low cost of entry. And what is also very clear that most of this deal in terms of number now is focused around renewables. And among the 12 deals of 2020, 10 are around renewables. And where do we stand today after those 4 years? We could say, and I'm saying it, I think that our renewable business is starting, just starting, but it's starting to reach a critical size when we compare to the leaders. And what I mean the leaders, clearly, the utilities because our -- all competitors are far from being at this level today. So we are starting now to have significant asset, significant yield. We are positioned on all our growth markets, because we are a large company, we have a large ambition, and we can afford to be on several of these markets. So the solar farm, which bring size and low cost of producing electricity. What we call a solar distributed generation, and we'll come back on that because it is not, of course, most well-known part of our business, but it delivers high growth and higher profit because of higher barrier of entry. We're not sure, of course, which is a needed complement because there are countries where there are a lot of wind but not so much sun. And wind offshore, which is, of course, the area where we are willing to grow on the basis of our core competencies, but as utilities clearly do not have for all of them at least. And batteries, we made the acquisition of Saft, one of the world leader of this technology. And we are among the few participants of this service segment. And 2020 -- end of 2020, we will have already 7 gigawatt of asset in operation. So it start to be meaningful. Of course, it is small at the scale of Total. But in the world of renewable, I can tell you, that it is very significant already. And the dynamic that we have now is not only limited, of course, to those asset in operation because we have also project under construction. And I will show in a minute some of the most significant. We have also identified late-stage development project and that we are confident that can be developed among the next year and, clearly, before 2025. And this is why Patrick was mentioning that our former objective of last year of 25 gigawatt in 2025, even if it was easy to memorize, is clearly something that is -- it is too easy for the team to achieve. And so we had to set a new target, and this is why we decided to have this 35 gigawatt. So it means that we have more or less 10 gigawatt to identify. And we -- based on what is our track record today, we have a little hesitation that we can do it, limiting ourselves, of course, to only profitable opportunities. So some example of where we are. The first country, of course, today is our own country, France, and where we acquired Quadrant, and Quadrant was and is still now one of the main renewable developer in France. It was crazy in 2013. So there's already in this company with more than 300 professional. We have already 7 years of experience that we can capitalize in order to fuel our growth. This professional are competent as well in wind and in solar. You can see on this map of France the different dots for wind and different dot of solar. And you see that, yes, we are today balanced between wind and solar, which is understandable for a country such as France. We have 1 gigawatt of operation right now, and we have already secured the pipeline to have 4 gigawatt by 2025. One example of what I call semi-organic growth was the acquisition this year of Global Wind and Power -- Global Wind Power. It's an onshore wind developer. But I can tell you that without the competencies of Guanghui, Total Guanghui, now as it is named, we would have had a lot of difficulty to make this acquisition profitable because we need all the team in order to expedite the development of the project that we have been acquiring. And what we can say today is that if Total in France is clearly the largest energy company, we are already now among the 3 big players integrated in electricity and in France. And this, of course, is giving a lot of stability and a lot of confidence going forward on our ability to remain profitable and to continue growing. After France and Belgium, Spain is to become our third market where we are again one of the leading integrated electricity company. So we will be 1 of the 4 once the deal with EDP will be closed, so hopefully very soon. And on this market, it is also a market where we can grow solar generation, because it's a market where there are a lot of sun, more than 2,000 hours of -- generating hours for solar project in Spain, where we have only 1,000, so 50% less in France or in Germany. So it's really a market, which is very favorable for low-cost solar. And on this market, as we mentioned, we have managed to secure a 5-gigawatt pipeline of solar project, which is noticeable. It represent more or less the third of the total mission for 2025 of the country. And we have managed to secure those 5 gigawatt through, I would say, a low-risk acquisition agreement. We have made agreement with 3 developers and we -- it is a scheme when -- where the developers are pursuing themselves, the development of the project. And we are buying the project with payment condition on them reaching precise milestones that you can see on the chart. So it's a very efficient way and very secure way for us to develop this pipeline of projects. And as I was saying, Spain is a country where we can produce low-cost solar electricity. And Patrick, as I reminded you about our strong objective to reduce our carbon footprint in Scope 1 and Scope 2. So we took advantage of the pipeline of solar farm that we are in the process of developing in Spain in order to walk the talk and mobilizing both farm to produce enough green electricity to supply 100% of the 6 terawatt-hour electricity needs of all our industrial site in Europe. And so we do that on the basis of our own solar asset. We are doing that also thanks to our trading ability to balance the risk between the country's electricity price spreads because, of course, we deliver this electricity to our German colleagues on the basis of the German price of electricity. Of course, we have to balance the production of the solar farm and the consumption of our site, which is more or less 24 hours a day when, of course, a lot of them are only producing a day. But we have the ability -- trading ability of doing so. And we have signed what we call corporate in our PPA, which is the largest corporate PPA that we have identified today worldwide. So when we say Total is walking the talk, yes, it is a reality. One example, of course, of high interest of what we are doing on large project, large solar project, such as the one that we have won in Qatar, one of the interests of that was, of course, that it is a large project. But it was also a test of the competencies and the competitiveness of our team. Because, yes, it was -- we got that through a tender. And through this tender, we manage without compromising, I can tell you, on our profitability objective. We managed to win the tender with the record levelized cost of electricity at $14.5 per megawatt hours. The category, we are very happy with us. And we were solely because, yes, we got the project on a profitable basis. And it was a test for us to make sure that, yes, we are able to have the best design. We are able to have the most competitive supply chain with attractive prices for the panel but, of course, we are buying in China because we are the most competitive producer in the world. And therefore, it was a good test, and it will start in '21. And as we said, of course, our ambition, especially in the country where the group has been present for nearly 100 years, what we are willing, of course, to develop is on a negotiated basis, other project that should deliver higher return. Another country of interest, we have mentioned it, India. So yes, we are targeting India as being one of the main market of today and tomorrow for renewable. Yes. You see on the chart, we have quite an impressive objective of 175 gigawatt of renewable by 2022. India is clearly key for our LNG gas strategy with high potential for them to reduce CO2 by coal-to-gas switching, and this was the main reason to partner with one of the largest private Indian company, Adani. But going forward, we realized that Adani was very active in renewable. We have created Adani Green, which is a listed company, very successful. They were recently ranked by consultants as the world leader in solar development. So they are very attractive and very dynamic company. And so we managed to sign with them the agreement to create a 50-50 joint venture on the basis of more than 2 gigawatt of solar farm with a very nice rate of return, considering that these projects are completely derisked because we are already in operation and benefiting for 100% of their production of a 25-year PPA. Total RM. So another example of what we did in order to attract the competencies that we didn't have internally at the time when we started in 2016, we identified that there was a very competent team, which created Eren in 2012. So [ Paris Boratto ] give his day. But knowing that, yes, Paris was and has been active in [ Weblinc ] in 2000 when he created a company, which later on become Total -- sorry, EDF Energies Nouvelles, which was the listed company before EDF decided to buy 100% in 2011. And then Paris decided to re-create a new company, and it partnered with us in 2017. We have 30% of Total Eren today. They are developing in areas where it is complementary to what our own Total team are doing. And their mission, and they are in the right track to achieve this ambition is to have 5 gigawatt by 2022, the year where Total has the option to acquire 100% of the share if we decide to do so. Solar DG. So Solar DG, yes, it's different market. It's peculiar to set up with no distributed generation for wind, of course. But having the possibility at acceptable cost to develop a solar policing asset on the roof of different industrial companies is something that is attracting a lot of interest today in many areas of the world where it bring already lower cost of electricity rather than buying electricity from the grid. And you see that the growth is there, 15% per year. It is a market that has been taught to us by SunPower because, yes, we learned from the mistake of SunPower, but we learned also of the success of SunPower. And SunPower is one of the leader, if not the leader, of this business in the U.S. So we understand what is needed in order to make money in those business. And yes, we have started, as it was mentioned, to propose to multinational companies that are willing as Total to reduce their global carbon footprint to have kind of solarization project. We have one inside Total, and some companies are considering it. And we are amongst the few companies that can offer them this possibility. And it is also a sector where we have managed to attract the interest of Envision, a Chinese company. I don't know if you know this company, but it's a rather well-known technical company, which are involved in digital and in the renewable. We are on the verge of becoming one of the leader of manufacturing of wind turbine. They have also a footprint in battery. So very dynamic company. And we have a joint venture with them, 50-50, in China, which is developing today at accelerated space. Even if we have to be reasonable in terms of gigawatt, this will never be as important as a solar farm or the wind project that we are developing. One word of SunPower because, yes, there was recent news for SunPower. Yes, it was mentioned that SunPower was maybe not the best investment that Total has made, but we learned from our mistake. We identified very quickly -- at least 2016 when we were counting our strength, we identified that SunPower had a high-performance product, maybe the highest performance worldwide. But clearly, we are not the lowest cost and mainly for a question of scale. And the scale in manufacturing businesses, such as solar sales and solar panel, is coming from large market, such as China and a very well -- a good know-how of low-cost manufacturing such as the Chinese are able to develop. So we identified that the future of SunPower and on the manufacturing side decided to go through a partnership with Chinese company. And this is what was achieved and was announced recently this month. Spin-off of Maxeon Solar Technology, which is a manufacturing arm with a partnership with TZS, which was one of the partners well known to SunPower and one of the leading wafer manufacturing for solar wafers. So TZS has taken 29% shareholding, injecting $300 million inside Maxeon. And new SunPower, the remaining SunPower, will focus only on distributed generation and storage markets, having the freedom to source best panels, the cheapest panel if it is of its interest. And of course, we think that it is a good promise for future successes for both companies. And we saw that the stock market has recognized that we realized a significant value creation through the spin-off. Wind offshore. So wind offshore, as you might have seen us, we were a bit shy on this technology that we knew. But we are considering for years that it was too costly technology. And you have to remember that no later than 2018, there were still some PPAs that we are negotiated with a public authority on the basis of prices much higher than EUR 100 per megawatt hour. And then through the contract that we had with the contractors that are the same but the one that we use in oil and gas, we started to understand that there was a cost reduction -- a significant reduction, which was happening. And we decided to partner first with Ofsted, the world leader. And we did partner with them in order to bid on the tender, [ Darier ] in France, that we lost, but we learned a lot from having our teams discussing and working shoulder to shoulder with Ofsted. When you want to learn, you better partner with the best one in the industry. That's what we did. Yes, we lost the tender because we are unwilling to compromise on the profitability. But we realized that we were able to make a profitable bid for us at less than EUR 50 per megawatt hour. So we are definitely convinced that, yes, this technology has a future. And we looked since then at different opportunities. And the first one that we can announce as real first big step is the Seagreen project, where we have acquired majority stake, 51%. We have a nice partner, SSE, which is also one of the leading developer of wind offshore project in the North Sea. And this project is already under construction. This is a project where we have the exception, only 70% is covered by PPA. But we have some ideas, and there will be some auction next year that could allow us to secure a bit more and allow us to derisk even more of the project. But on this basis, we are already satisfied with the economics as we see them. And there is opportunity to develop 400 megawatt beyond that could be also at a nice level of profitability. But as Patrick mentioned, the new frontier in wind offshore is in floating offshore because the fixed bed project are limited, more or less, to a 60-meter water depth. And in the North Sea, yes, there is a lot of area to develop those project. But outside of the North Sea, most of the time, we are very limited in term of surface. If we can only use project that need less than 60-meter water depth. So the floating is the new concept that is being developed. It can unlock fantastic development for the technology. Of course, today, it's more expensive than the fixed bed and -- but there are a strong willingness of many countries to offer PPA in order to meet the profitability requirement that we have and allows to secure the development of first project on the profitable basis. And we have already 2 significant projects. There will be another one that we'll announce later in October. But we have already 400 megawatt of project in the U.K., and we have announced also partnerships with Macrae with a portfolio of -- to be a lot of projects in South Korea. Of course, the challenge being to reduce the cost we intend every day to leverage the competencies that we have inside developed in oil and gas, because this will be more or less the same technologies. And we need, of course, to work in order to industrialize the best technology and to lower the cost, and we have started already. We have a team that is working on this subject with a budget of $20 million per year of budget. And last slide that Patrick already showed you. So this is the result of our ambition, the 35 gigawatt that we ambition to have in operation because we have, of course, a pipeline to go beyond but 35 gigawatt in operation in 2025. Double-digit return, for sure. Very low risk, nearly 100%, as we mentioned, secured by PPA with first -- for first-line companies or with public authorities. And with this ambition, I think, yes, we will be among the 5 global leaders of this industry. Stop there. Ladislas, please.

All right. Well, thank you very much, Philippe. So if you have questions for Philippe, keep them for now. There will be the Q&A session at the end. But now we have the last Zoom focused on the mobility revolution. It will be made of 2 parts, but to introduce this Zoom, I hand over to Helle.

Thank you, Ladislas, and good afternoon, everyone. Just as a way of a quick introduction on the revolution that is taking place in the mobility sector, I have one chart from our energy outlook that we presented yesterday. And so here it is. What you can see here is the actual fuel mix of the worldwide transport sector expressed in million barrels equivalent per day in 2018 to the left; and then moving over to the right, the evolution in 2030 and 2050 in our 2 scenarios: Momentum and Rupture. The colors on the bar chart to the further right, so Rupture, in 2050 tells the whole story. It shows how the fuel mix diversifies and how effectively we cannot achieve net 0 for the transport sector without this massive change in the use of fuels. To the far right, therefore, you have the different fuels. You see that there is still some are left, and that would be especially in emerging markets. But there is a strong penetration of biofuels and e-fuels or sustainable liquid fuels. Synthetic fuels is another name. Penetration also of natural gas, hydrogen and, of course, electrification, especially of passenger cars, but not only. In the shorter term, which is the data you didn't have yesterday, so between now and 2030, the takeaway is that electrification, biofuels and gases will be the best way to decarbonize transport. And this is effectively what you're going to hear about. Now from first, Bernard, I believe, and then lit. Thank you.

Thank you, Helle. Good afternoon. So let's now turn to biofuels. What I intend to do in the next 20 minutes with Alexi together is to share with you our ambition on the biofuels market from the producer as well as from the marketer standpoint. So let's first turn to the market, the world biofuel market. You see it on this chart. What is, of course, obvious is that's a growing market. 2 million barrels a day today, 4% of global transportation fuels market. But we expect this part to double by 2030. And of course, as I explained, depending on the scenario, this part could even further double by 2050. So why is it growing? It's pretty obvious. It's because biofuels reduce CO2 emissions by more than 50% compared to their fossil counterparts. And the states have, of course, understood that this is a readily available solution to decarbonize transportation. So states put in place CO2 reduction targets supported by tax incentives. Practically, it means that given percentage of biofuels has to be incorporated into fossil fuels. And of course, these targets are meant to increase over time. And when you look at the 10 years ahead of us, in most of the countries, you see this target increasing. And on top of it, you even see more states coming and joining, I would say, the trend by putting in place such mechanism, the latest one being, for example, Canada, which intend to reduce their carbon intensity by 12% by 2030; or states in the U.S. like Oregon, New York or Washington. So in a nutshell, an attractive market from a growth standpoint. So how do we intend to catch this growth? What is our strategy? Our strategy has been designed along 2 pillars. From a producer standpoint, which is the perspective of Refining & Chemical, our strategy is going to grow in renewable diesel, the most attractive part of the biofuels market. I will come back on this one. And as a marketer, of course, which is the perspective of Marketing & Services, the strategy is to grow the share of biofuels distributed through our retail network. And I leave the floor now to Alexis. Alexis will elaborate on this one.

Thank you, Bernard. Indeed, our ambition in biofuels is to grow our sales very significantly, as you can see. We are looking at growth, both in Europe and in the rest of the world. In Europe, we are currently the largest biofuel retailer. Indeed, the great deal that was just announced will translate higher incorporation mandates. And also HBO will come into the equation, especially with the trucking segment. HBO has a great interest for the whole company who want to decrease their Scope 1 and Scope 2 emissions without having to change their trucks. So the combination of both will allow us to continue developing our biofuel mix in this continent. But we go beyond that. As an example, we are actively promoting e85. That means 85% of ethanol in gasoline in our retail network in France. We doubled the number of stations offering e85 between 2018 and 2019, and we continue expanding our network as the demand is clearly there. Beyond Europe, we have identified a few markets where we want to grow. One of this is Brazil, which is the large -- the second largest biofuel market in the world, with 1/3 of the sales there biofuels already. In 2019, we acquired a network of 300 station. This was the first step as our target is to have more than 1,000 station in Brazil by 2025. We are also anticipating developments in the aviation business, but Bernard will elaborate on that in a few moments. So you see biofuel will represent between 10% and 15% of our sales in 2030. This is what it takes to meet the 2 key objectives of the group of reducing the carbon intensity of our sales and decreasing the absolute Scope 3 emissions by 2030. Over to you, Bernard.

Thank you, Alexis. Now let's turn to renewable diesel. I just said that this is what we want to focus on as a producer in Refining & Chemical, and let's try to see why. When you look at the biofuels market, typically, you have to split this market into 3 segments, which each have very different characteristic. The very first one at the bottom is a pretty well-known segment, the biogasoline. It's the largest one. There you incorporate bioethanol made out of sugar. The second segment is the biodiesel segment, where you incorporate biocomponent made out of vegetable oil, typically hapseed oil, corn, soybean. This biocomponent are called ester fame, but they have a drawback. They contain oxygen, and that limits, from a technical standpoint, their incorporation rate into the engine. There is what you call a blending cap or blending wall above a certain volume, typically 7%. You incur you risk to damage the engine. So of course, you understand that, that puts a cap on the growth potential. These 2 first segments have many points in common. They have low-entry barriers. They are not very capital-intensive. The technology is pretty well known. As a consequence, they are largely oversupplied. And as a consequence, margins are poor. So this is, of course, not the kind of market you like to compete in when you are a producer. The third segment at the top is the renewable diesel segment. It's also a biocomponent for the diesel market. It's also produced from vegetable oil, but this time, with a different technology called hydrogenation. And the beauty of this process is that you can rid of the oxygen into your biocomponent. And all of a sudden, you understand that there is no incorporation limit anymore. This is what we call a drop-in solution. And in theory, you can even replace/substitute 100% of your fossil fuels by this renewable diesel. This is a high-quality grade, but entry barrier are higher than for the 2 other segments. It's more capital-intensive. It's growing from that standpoint. It's an attractive market, a high-margin market and typically the kind of market you want to play in. The last comment, as Alexis mentioned, renewable diesel can be used for airlines. That's not the case of the 2 other segments. And as you know, air transportation today faces a huge challenge in terms of CO2 emission reduction, which means that there is an additional growth potential for renewable diesel. And this is what I would like to show you now in more detail. So air transport. The equation is very simple. You see there, this industry emitted last year around 1 billion ton of CO2. Airlines have made the commitment to reduce their CO2 emissions by 50% by 2050. But at the same time, they know that the passenger traffic will double during this period of time. So it looks like a tricky equation to solve. So how do we address this challenge? First, of course, airlines try to reduce the weight of their airplanes by putting more lightweight material. They also try to optimize their flight plans to reduce the fuel consumption. But the first lever, the main lever is, of course, around the fuel itself. Today, liquid fuels are hard to substitute for long-haul flights. We know it. And thanks to this premium quality, spring grade, the renewable diesel is the only available solution offered today to airlines to reduce their CO2 emissions. So you understand this is a brand-new market, and the states have understood, of course, it. And you see now countries like Norway, France, The Netherlands, Sweden, tomorrow, Europe and probably the U.S., putting in place incorporation targets, exactly as they did for the road transportation. So we have in front of us a brand-new nascent market, which will also fuel the growth of biofuels and notably renewable diesel. So we have looked at the demand side. It's pretty attractive. Let's now have a look at the supply side. You have here the balance between supply and demand for renewable diesel. What is clear on the chart is that there is a clear need for additional capacities to meet the demand. And today, the market is short of capacities, and we think it will stay that way for the years to come. Why is that? It's very simple. When you think about where the new capacities might come from, of course, you think about retrofitting existing refineries, exactly what we did with La Mede or what we're about to do with group fleet close to Paris. But the typical lead time is 3 to 4 years between the moment where you make the announcement and the moment where you have your first production. On top of it, we don't see many new greenfield projects. Last comment, there are also not so many projects in Europe. And it's hard to some extent because we consider that Europe is at the forefront in terms of energy transition and carbon neutrality. So there is an opportunity, clearly, for European refiners and, of course, for Total. So in a nutshell, if I had to summarize, the market will stay tight. And of course, that will support margins for the years to come. So what is our strategy in this field to catch this potential, this opportunity? So we have designed a strategy build along 3 pillars. I'm going to detail each of them. The first one, of course, is to convert existing assets. That's particularly true for Europe, where we need to adapt our refining system. We have done it with La Mede. You know it. It has been our first step. We are not doing it with Grandpuits. I will come back to it in more details in a few minutes. So that's the first pillar we execute. The second one, of course, is to increase the share of coal processing in our existing refinering system. So we take the existing assets with some marginal CapEx, mainly some logistic CapEx, to segregate vegetable oils from crude. We produce renewable diesel. It's done at a marginal cost because typically, OpEx are very low. And you see there that we have plans to grow this part by 300,000 tons in Europe in the next 2 to 3 years. And we're also looking at opportunities in the U.S. And the last pillar, of course, is to develop new units, additional production units on existing platforms where we can leverage existing synergies, typically, logistics synergies; or if you have an excess of hydrogen, typically, you can also leverage this excess hydrogen to produce renewable diesel. And that's typically the project we're evaluating today in Korea. It's 0.5 million ton of capacity project on our platform in Dasan. So what you see clearly is that by leveraging our existing refinery setup, we are able to benefit from very low CapEx in the range of $500 to $750 per ton as you see. And this has to be compared with greenfield projects, which range more in the area of $1,000-plus per ton. So it's very attractive from the CapEx intensity standpoint. And also, and I will come back on this because it's also critical, we design our investments in a way to be able to process all type of feedstock as flexibility is key in this market. So as Patrick explained, we are targeting more than 2 million tons of renewable diesel by 2025 and moving this volume -- doubling against this volume and coming close to 5 million tons by 2030 with a cash flow generation in the current environment of $350 per ton. So I was mentioning feedstocks, which is a critical point, and I would like to tell you why. On this chart, you have the market split of the main feedstocks used for renewable diesel. On the left-hand side, the largest pool, very well known, it's all -- these are all types of vegetable oils. It's a resource, which is largely available and which will remain largely available for the future even after the pan ban. In the middle, you have a growing category called waste and residues, so typically animal fat or used cooking oil. This is a -- there is a great demand for this category with some tax incentives because this category contribute to the secular economy, and it's supported by the government and the states. The challenge there, of course, is to increase the collection rate to meet the demand -- the increasing demand, 25 million tons today, which is already significant, and we expect this category to grow in the decade to come. The last category on the right-hand side called advanced. It's the next generation, but not really available today. We see it more playing a role by 2030. So as you see, there are plenty of different feedstocks to play with. And of course, it depends on the price because the prices are pretty volatile, depending on the -- once again on the feedstocks. You have to play with the legislation. As I just said, for example, palm oil is banned in France. Animal fat is banned in Germany. So depending on the legislation, you have a different mix to play with. And of course, you have to play with the tax mechanism. I was mentioning waste and residues, which in some cases benefit from tax incentives. So you understand why it's so critical to be able to play with all the state, all the panel, all these feedstocks. And that's why it's so critical to be able to -- it's so critical to design your units to be able to process all type of feedstock. And this is exactly what we have done. You see it in La Mede and two more in Grandpuits. In La Mede, so far, we have been able to process successfully 8 different types of feedstocks. We have designed our units to be able to pretreat these feedstocks, to also be able to segregate between the different types of oil and feedstocks or finished goods. And of course, we leverage the expertise of trading to be able, once again, to get access to the best sources of certified feedstocks. Particularly, what have we done and what do we intend to do? The very first move we made, you know it was with La Mede. It started up last year, mid of 2019. This has been our first move. We have applied there our business model, which is, once again, to retrofit existing assets to benefit from low CapEx. And you see here that La Mede -- the CapEx intensity of La Mede was around 600 ton -- $600 per ton, sorry to be compared once again with the metrics of the greenfield project, which is more in the region of 1,000 tons plus per ton. It has been designed, I've already said it, to be able to process all type of feedstocks. And today, we are in the ramp-up phase. 300,000 tons of production, this is what we expect to do by 2020 -- by the end of the year, delivering a positive cash flow from operations above $350 per ton. So I would say first step, a successful one. And of course, we are now leveraging this experience to move to our next project, which is Grandpuits, close to Paris. That will be our very first 0 crude or 0 oil platform entirely dedicated to bio-based fuels and polymers as well as to plastic recycling. This represent an investment of more than $500 million of CapEx. A good internal rate of return, you see there, more than 15%. And we have there, if I just described briefly, the different projects, the biorefinery, which will process 400,000 tons of feedstocks, 70% being waste and residue, with half of it being secured. This unit will be completely -- largely dedicated to the production of biojet. Sustainable airline fuels, that will be the main outlet of this biorefinery and with some renewable diesel, of course, starting up in 2024. We have also a brand-new bioplastic units, producing PLA. PLA is a biopolymer made out of sugar. We have, as you know, a very successful partnership with Corbion. We invested 2 years ago in a plant in Thailand, 100,000 tons. This plant has been ramping up very well, and we have taken the decision to double the capacity of this joint venture and to locate this new unit in Grandpuits with again a start-up phase by 2024. The third project is a plastic recycling unit. It's a chemical recycling unit. It's a first in France. It's going to be a joint venture as well with a company called Plastic Energy, and we are targeting a start-up in 2023. And we have, last but not least, a solar farm, 15 megawatt of capacity, which will contribute, as Philippe explained, to the generation of green electricity for the European asset of the group. So as a conclusion, you will remember that our strategy is built along 2 pillars: a leading producer, a leading marketer. Producer, we want to grow our production in renewable diesel, becoming a leader in this field. And in the field of biofuels, as Alexis explained, we want to grow our share of biofuels within our liquid fuels by 2030 to a level which will represent 10% to 15% of our sales and that will -- and, of course, which will also contribute to reducing the carbon intensity of our sales. Thank you. I give the floor to Alexis now.

Thank you, Bernard. For the next 20 minutes, together with Philippe, I will present our third and last focus on how Total is embracing the electric mobility revolution. I will start by stating the obvious: mobility is about to change drastically. It has already started, albeit slowly, but the change will be major in the coming decades due to the exponential penetration of the electric vehicle. In the Total Energy outlook that was presented to you yesterday, in the Momentum one, the share of electric vehicles will reach close to 60% of the fleet by 2050. In the Rupture scenario, the increase is even faster as the percentage will be close to 75% of the world fleet in 2015. In Western Europe, and we are presenting here on the right the 5 markets where Total has a strong footprint, the number of vehicles on the road will be more or less stable at around 100 million vehicles. But the switch to electric mobility will be faster than the worldwide average. You can see that the share of electric vehicles will still be modest in 5 years in 2025 at less than 5% but will grow significantly to reach almost 20% in 2030 and close to 95% by 2050, thanks to the impact given by the Green deal. This acceleration is no science fiction and is being fueled by 3 main drivers. First and foremost, regulations. Regulations are the main market driver, and they take place at various levels in economic zones, in countries and in cities. There are many examples beyond the long-term political objectives of carbon neutrality announced by Europe and China recently. This -- there are -- there is, for example, the emission target of 95 grams of CO2 per kilometer that has been set on vehicles sold in the Europe since this year. There is the banning of the internal combustion engine by many countries in the next 1 or 2 decades. There is the introduction of zero ultra-low-emission zone in city centers as London and Amsterdam have already done. Car manufacturers have reacted to these regulations and have started to invest massively in EV. They have clearly chosen electricity as the next technology, and this is the second major market driver. Finally, performance of battery -- of batteries is rapidly increasing, while costs are decreasing. This is the third market driver as it allow us to foresee, one, cheaper cars; the cost of the battery currently represents still 40% of the cost of the car; and two, extended autonomy. These are the 2 pain points preventing customers from switching massively to EV right now. The mobility world is changing. As Total, we have integrated that in our strategy. In mobility and EV charging, and I will come back to that in a few moments, our strategy will be to address the most mature and attractive markets in terms of size and to leverage our position. We are quite excited as we really do believe this represent a fantastic business opportunities for Total. I just mentioned how batteries are a key driver to this market and a key element of the value chain. And Philippe will now explain how total is addressing this marketing opportunity by developing key position in battery manufacturing. Over to you, Philippe.

Thank you, Alexis. So first slide, you have to remember that when we invested in Saft, the strategy was, in fact, to develop what we call Energy Stationary Services. So battery need to compensate for renewable production interment, peak shifting or frequency regulation. But to be profitable, and we learned once again from our mistake and SunPower experience, we were willing to get low-cost manufacturing basis. And of course, this was implying to go to China and also to take interest in mobility because the lithium-ion battery needed for ESS are more or less the same chemical family as the one for mobility. And so after having discussed with different partners in China, we decided to partner with Tianneng headquartered near Shanghai. They are the #1 worldwide of the lead battery for vehicle. This business is not part of the venture, but they were eager to develop lithium ion. And so we have already built a Giga factory, a large factory, but which was not completely filled. And we decided to partner with them. We created the joint venture, 60-40, in 2019. Saft is contributing clearly mainly to its lithium-ion chemistry and know-how, and Tianneng is contributing with, first, its Giga factory, an existing one. And it's also contributing with its sales channels in China because on this basis, we can develop, produce cheaply products for our ESS business outside of China. And we can also develop business for mobility in China where we are leveraging also their sales network. And today, we are already the leader in China with close to 30% market share of the e-bike segment, which is one of the highest growth segment in e-mobility. And when I say e-bike, it's not only bicycles, it's also the motorcycles. So this is our investment in China. And second slide. Thank you. We are not limiting our mission to China. We had also an opportunity when Europe decided really to adopt a very clear policy to promote, to impose development electric cars. We had the opportunity to discuss the possibility of building manufacturing capability for battery for electric vehicles in Europe. The risk for Europe was, of course, to import batteries from China one day and in the future to import the vehicles. And so we had a discussion with the authorities with a very strong partner, PSA, one of the leading manufacturers in Europe, maybe the most profitable now, and we decided to partner with PSA 50-50 today to develop this automotive sales company. We created the company early August. The objective around the treaty is to get up to 1 -- equivalent of 1 million EV, so that means more or less 10% of the European market. We'll go step by step. Clearly, the first step is an R&D step, which has already started since August. And the -- for Total reinvestment is limited to EUR 500 million equity injection, knowing that we have significant subsidies that will -- but have already been granted by France and Germany on this project. Alexis?