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Published on February 26th, 2016 | by Joshua S Hill

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ENGIE Launches Three-Year Transformation Plan To Lead World Energy Transition

February 26th, 2016 by  

French energy giant Engie has launched a three-year strategic transformation plan to become a world leader in the global energy transition.

ENGIE-logoThe announcement is part of the company’s intentional plan to speed up the implementation of a strategy previously decided upon two years ago. Specifically, Engie will attempt “to adapt its portfolio of activities to its long term vision and to grasp new development opportunities.” Engie will focus its new developments on the following three areas:

  • low CO2 activities which will represent more than 90% of Group’s Ebitda by 2018
  • activities not exposed to commodity prices, such that the share of contracted/regulated activities in Group’s Ebitda will be >85% by 2018
  • integrated customer solutions, which Ebitda will grow by more than 50% over the period

The acceleration in the form of its three-year transformation plan has four separate objectives:

  • redesign the Group’s portfolio of activities, by leveraging on its historical positions and strong financial structure
  • improve the Group’s efficiency
  • pave the way for the future, notably by investing in innovation and new technologies
  • adapt the Group to make it agile and open to the external world, based on a simplified organization, closer to territories

“In a deteriorated market context, ENGIE launches today an ambitious 3-year transformation plan to become leader of the world energy transition,” said Gérard Mestrallet, Chairman and Chief Executive Officer of ENGIE. “This plan aims at redesigning the portfolio of activities of the Group, thanks to a EUR 22 billion Capex program and a EUR 15 billion portfolio rotation program, and at improving its risk profile by reducing its exposure to commodity prices. We want to focus on low carbon activities and on integrated customer solutions, while improving the efficiency of the Group.”

OpterraAs the first major stepping stone on its transformation path, Engie revealed that it had acquired OpTerra Energy Services and its affiliated companies; sold 13 GW worth of power generation assets — of which 10 GW was exposed to commodity prices in the US; and included two coal-fired power plants worth 3 GW in India and Indonesia.

“These transactions perfectly illustrate the implementation of our transformation plan, to reduce ENGIE’s carbon footprint and its exposure to commodity prices, and to focus on two of our priorities: developing a low CO2 energy mix and innovative and integrated solutions for our clients,” added Gérard Mestrallet.

“Through the acquisition of OpTerra, ENGIE thus becomes the third US leader in energy services. With the disposals in the USA, India, and Indonesia, we already realize over one third of our three-year €15 billion portfolio rotation program, while reducing by 20% our coal-fired generation installed capacity.”

“ENGIE is an ideal home for OpTerra to deliver meaningful energy efficiency and sustainable solutions to a vast array of customers in the United States,” said John Mahoney, CEO of OpTerra Energy Services. “This acquisition is in line with our long-term growth strategy, and the entire OpTerra team is ready to leverage ENGIE’s presence here to broaden our suite of offerings to our current and future customer base.”

It’s a striking move by a company which has often been criticized for its dirty power generation — most notably of late, Australia’s dirtiest coal power plant, the Hazelwood power station in the southern state of Victoria.

 
 
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About the Author

I'm a Christian, a nerd, a geek, and I believe that we're pretty quickly directing planet-Earth into hell in a handbasket! I also write for Fantasy Book Review (.co.uk), and can be found writing articles for a variety of other sites. Check me out at about.me for more.



  • Matt

    It isn’t so much I mind web “reports” trying to be first to repost a release. Since I’m sure that somehow your “web worth” is based at least in part on the post number. But blinding posting release with no back story or fact checking does not make you a reporter. Sad to say that blind posting is becoming the norm for many of cleantechnica’s stable. Zac could you at least create a PR channel.

  • Mike Dill

    Josh, thanks for reprinting this public relations piece without looking further into the company. Engie owns the dirtiest coal plants in Australia at Hazelwood. The greenwashing is world-wide. Let me know when they have a plan to shut them down.

  • JamesWimberley

    Engie used to be Suez. The rebranding from a famous name to “who are they?” is strikingly incompetent, though not quite as bad as the short lived if expensive renaming of the UK’s Royal Mail as Consignia.

    The posturing by a latecomer about “leading the global energy transition” is arrogant and offensive.

    • Mike Dill

      The rebranding allows them to forget that they have a dirty past.

      • Eric Lukac-Kuruc

        Not only past but still current unfortunately.

  • heinbloed

    Engie owns Europe’s most dangerous atom bangers in Belgium.

    No greenwashing here please, Engie extended the lifetime of these bangers by corruption.

    • Mike Dill

      The also own the dirtiest coal plants in Australia at Hazelwood. The greenwashing is world-wide. Let me know when they have a plan to shut them down.

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