In an effort to roll with the ever-changing punches that come with working with renewable energy sources and the likes, the French oil and gas global company, Total, has announced a new division that will focus on gas, renewables, and power.
From the 1st of September the new division will open with a president that will sit on the company's executive committee, Reuters confirmed.
"Gas, Renewable, and Power will spearhead Total's ambitions in the electricity value chain by expanding in gas midstream and downstream, renewable energies and energy efficiency," the company said.
The company wants to make it known they are throwing their weight behind ensuring that the global energy demand does not continue to produce fossil fuels and will focus on getting energy from cleaner, more renewable sources.
According to SeekingAlpha, Total plans to spend $500 million a year on renewable energies.
The move to prioritise renewable energy comes after fossil fuel prices hit all-time lows in the last year. A report by the United Nations Environment Program showed that in 2015, there was more investment in renewable energy than into fossil fuels.
It also comes after 2015 was confirmed to be the hottest year on record. The revelations of how climate change is escalating was a topic at the COP21 conference held in Paris in December 2015. Governments and global actors agreed that the world must be kept under the 5 degrees centigrade estimation that was made - granted the world doesn't do something about it. Investing money into renewable energy is a duty that global actors like Total must do.
Christopher Knittel, an energy economist at the MIT Sloan School of Management also spoke out against the use of fossil fuels this week. He said: "If we don't adopt new policies, we're not going to be leaving fossil fuels in the ground. We need both a policy like a carbon tax and to put more R&D money into renewables."
Knittel would be pleased to hear the news that Total is pumping a lot of money into renewables. Total's spokeswoman, quoted by Reuters, said: "The idea behind it [investing money into gas, renewables & power] that we will remain an oil and gas major with competitive oil assets that we can exploit with a low break-even point." They also confirmed the move would not jeopardize anyone's job in the company.