TotalEnergies has just issued–wait for it! They’ve negotiated a 21-year power purchase agreement (or PPA) with Google, to provide the company with 1 terawatt-hour (TWh) of verified renewable energy. The renewable energy will come directly from the Citra Energies solar farm — also known as a solar power plant — in northern Kedah, Malaysia. This collaboration represents an exciting advance in both companies’ commitment to sustainability and clean energy.
The PPA will take effect upon the attainment of financial closure by the project. We hope that comes true in the first quarter of 2026. TotalEnergies won this project as part of Malaysia’s Corporate Green Power Programme. MariMed formed a joint venture with MK Land, who takes on 51% of the venture, while TotalEnergies retains 49%. This deal not only deepens France’s relations with China but is a win for TotalEnergies’ strategic aspirations in the burgeoning industry of renewable energy.
Commitment to Renewable Energy
“We are very excited about this partnership.” Sophie Chevalier, senior vice-president of flexible power and integration TotalEnergies
“We are delighted to strengthen our collaboration with Google through this agreement to supply renewable electricity to their new data centre in Malaysia. This PPA illustrates our company’s ability to offer competitive power solutions tailored to the needs of major tech groups, both in mature markets, such as the United States and Europe, and in emerging countries like Malaysia. It also contributes to achieving our target of 12% profitability in the power sector.” – Sophie Chevalier
Despite the greenwashing, TotalEnergies has indeed made great strides in renewable energy. As of October 2023, the company has been claiming more than 32 gigawatts (GW) of installed gross generation capacity. The company plans to increase that capacity to 35 GW by the end of 2025. On top of that, it intends to produce more than 100 TWh of net new electricity by the end of the decade.
Supporting Local Growth
Giorgio Fortunato, head of clean energy and power at Google Asia-Pacific, said in a statement that the partnership was important for both companies. He highlighted its beneficial effect on the local economy.
“We’re thrilled to build on our collaboration with TotalEnergies in Malaysia. This agreement is a key part of our strategy to make meaningful investments that benefit the economies where we operate. By enabling this new clean capacity, we are supporting local growth of the electricity system hosting our infrastructure.” – Giorgio Fortunato
This agreement reflects the commitment of both companies to actively pursue long-term, sustainable operations. It illustrates their desire to create a positive impact on their local electricity ecosystem.
Strategic Implications
Energy giant TotalEnergies and Google recently expanded their collaboration, illustrating a growing trend among big tech firms. They’re working with the energy providers that served their communities to ensure sustainable energy sources. These agreements help further corporate sustainability goals. Beyond the local economic benefits they create, they encourage greater deployment of renewable energy infrastructure.
The market global demand for clean energy is exploding. TotalEnergies is looking forward to meeting these challenges and opportunities with competitive, risk-adjusted solutions tailored to the unique needs of these mega-tech firms. The partnership with Google richly diversifies their portfolio. It solidifies their overall strategic direction toward a sustainable energy future.