The Shareholders' Newsletter SN#65

 

Total’s ambition is to operate over 150,000 charge points in Europe by 2025.”

Pierre Clasquin
Vice President EV Charge, Marketing & Services

What is Total’s strategy in the electric charge market?

Pierre Clasquin: Total’s strategy is to capitalize on this new market opportunity, based on our know-how in the mobility sector. To do so, we want to control the entire value chain in this new role as a service provider of charging services: from supplying renewable electricity to customer relations, the installation of facilities and technical and commercial operations for the charging service. Since buying out G2mobility in 2018, one of the French leaders in electric vehicle charging solutions where I was a cofounder, the Group is developing and marketing end-to-end charging solutions in line with new practices: connected charge points, operated by a platform that controls the access, usage, energy consumption and invoices charging services. Our ambition is to ramp-up our presence by a factor of 10 in 5 years, consistent with electric vehicle growth forecasts. We are focusing on the European market as it is highly favorable to the rapid development of electric mobility, and we are already a major mobility player through the service station network and fuel cards activity. The Group provides solutions for both professional (B2B) and the public sector (B2G) to accompany them with the installation of pertinent charging solutions in line with their respective environments. Our aim is to achieve around 10% market shares in Western Europe in the B2B and B2G markets.

How does the development of charging points operated by Total in Europe stand?

P.C: Total already operates over 21,000 charging points in Europe. We are positioned through long-term concessions in several large towns and cities in Europe: Amsterdam, Brussels, London and Paris. In 2020, we won the largest public charging contract for electric vehicles in Europe, for the Metropolitan Region Amsterdam, which will see the Group install and operate up to 20,000 new public charge points in the Netherlands. Also in 2020, we won the city of Paris concession tender for the installation and operation of charging services in the city, i.e. Almost 2,300 charging points. In order to provide a service coverage as comprehensive as possible, particularly for professionals, we have begun to develop fast, high-power charge points at service stations, with a deployment plan including 200 stations in major towns and cities in France, Belgium, Germany and the Netherlands by 2023. Outside cities, we intend to open high-power charge points at 300 service stations along Western Europe’s main motorways – that’s one every 150 kilometers. 

ELECTRIC-VEHICLE ADOPTION IN WESTERN EUROPE*

Bar graph, from 0 to 100, illustrating the weight of electric vehicles in the Western European fleet (France, Germany, Belgium, Netherlands and Luxembourg) in millions of vehicles.

2020: Non-electric vehicles are in the majority, exceeding the 90 mark.

Electric and hybrid electric vehicles do not exceed 10

2025: The trend remains the same

2030: The number of electric and hybrid electric vehicles increases and reaches the 20 mark

2050: Momentum Green Deal: Electric and hybrid electric vehicles are in the majority, reaching the 80 mark

_{Source: Total Energy Outlook 2020 - Momentum Scenario}

What are the challenges for Total?

 P.C: The main challenge, in a new market, is to offer solutions in order to meet the needs of our various customers, businesses or individuals, whose practices are going to be modified by the transition to electric vehicles. The latter offers several charging options relative to combustion-powered cars, that can fill up only in service stations. Motorists will recharge their vehicles based on the possibilities available to them over a given journey and how long they will be parked in the same place. We estimate that 40% of recharging will be done at home, 40% at work, 15% on public roads, and 5% at service stations. We therefore need to offer solutions that are in line with these new practices, in order to meet the needs of our various customers, businesses or individuals. We are positioning ourselves on all these sectors depending on our access to these market segments in different countries.

THE CHALLENGE OF ELECTRIC VEHICLES: MARKET SHIFT TOWARD A MULTI-CHANNEL DISTRIBUTION MODEL

Fuels: (service stations: 100%)

Electromobility in Europe:
(Home: ~w40%, Workplace: ~40%, Public road: ~15%, Gas stations: ~5%)