ENGIE, DLVA and Air Liquide are entering into an ambitious partnership to produce green hydrogen on an industrial scale.

ENGIE, the Durance, Luberon, Verdon urban area (DLVA) and Air Liquide are signing a cooperation agreement to develop the “HyGreen Provence” project. which aims at producing , storing and distributing green hydrogen.

Initiated in 2017, “HyGreen Provence” will make it possible to develop and validate the technico-economic conditions for the production of 1,300 GWh of solar electricity, equivalent to the annual residential consumption of about 450,000 people, together with the production of renewable hydrogen on an industrial scale through water electrolysis.

The project will be developed in several phases with the first deliverables envisaged by the end of 2021 and a possible final phase in 2027. Eventually, several tens of thousands of metric tons of renewable hydrogen could be produced in this way every year to meet a very broad spectrum of uses.

The DLVA urban area region, which comprises 25 municipalities and 65,000 inhabitants, has considerable advantageous resources for this project, including one of France’s most favourable levels of sunshine (an average of 1,450 hours per year), substantial land availability and the presence of a salt cavity storage site able to accommodate the large-scale centralised production of renewable hydrogen.

ENGIE and Air Liquide, partners committed to the development of hydrogen solutions, have decided to join forces in the project, alongside the DLVA urban area region, by combining their strengths:

  • ENGIE’s expertise in the implementation of zero-carbon solutions for its industrial customers and the regions, solutions that are based on fully renewable energy sources including hydrogen and incorporate the entire value chain (production, storage, distribution)
  • Air Liquide’s expertise in the field of hydrogen, spanning across the entire value chain, from production until final usage, and which includes in particularly in low-carbon production technologies including electrolysis
  • And the commitment of the DLVA region urban area to supporting the development of a project of a scale and nature unprecedented in France

This hydrogen will serve various uses in the areas of mobility, energy and industry, both locally and regionally. As far as mobility is concerned, hydrogen can power all types of vehicle from light motor cars to buses, utility vehicles and trucks. On the energy front, the project plans to provide heat and cooling for an urban eco-district. Lastly, hydrogen can be used in industrial processes that will benefit the entire region.

The signature of this innovative public-private partnership has been made possible by the involvement of many stakeholders committed to the zero-carbon transition. It is fully aligned with the regional initiative being undertaken by DLVA and will contribute most substantially to the development of the hydrogen sector in France.

Gwenaëlle Avice-Huet, ENGIE’s Executive Vice President in charge of Renewables, says, “Entering into the partnership heralds a ground-breaking alliance between large industrial groups in France, and a local with the support of the public authorityies, that will accelerate the emergence of massive renewable hydrogen production projects in France. ENGIE is convinced of the importance of renewable hydrogen in providing “zero carbon as a service” solutions to industrial customers and the regions.

Bernard Jeanmet-Péralta, the President of DLVA, says “First and foremost, HyGreen Provence is an ambitious and innovative regional project. It will embrace all those desiring consultation and dialogue, particularly the National Parks in Verdon and Luberon. We are involved in the dynamic that is the “Vallée des Énergies” together with partners such as the Iter project, the Cadarache CEA, Géomethane and hydroelectricity in Durance. We are thereby contributing to the energy transition in France along with leading industrialists which, through their respective expertise, bring credibility and viability to the requirement for zero carbon emissions.

Guy Salzgeber, Executive Vice President and member of the Air Liquide Group Executive Committee supervising Industrial Merchant, Hydrogen and Innovation, said: “We are pleased to contribute to this flagship project, which will demonstrate, in France, on an industrial scale, the key role that hydrogen will play in the energy transition. For more than 40 years, the Group has developed a unique know-how in the field of hydrogen. With expertise in all production technologies—including electrolysis—the Group is now a leading player in the world with regards to low-carbon hydrogen energy production. This project is in line with the Group’s climate strategy, the most ambitious in its sector

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ENGIE financial information as of September 30, 2019 Sustained growth in Q3 and for 9M 2019 – 2019 full year guidance confirmed

  • Financial results as of September 30, 2019 with earnings acceleration, in line with expectations: current operating income (COI1) of EUR 3.8bn, up 9%, and 14% on an organic2 basis, and EBITDA of EUR 7.1bn, up 5%, and 7% on an organic2 basis.
  • Sustained Q3 performance, notably with the expected improvement in Nuclear availability as well as good momentum in Renewables.
  • Solid 9M organic2 COI1 growth, up 14% yoy (+ 12% excluding the 2019 positive one-off from Suez linked to the Argentina court case), driven by Nuclear, Thermal, and Others (notably Energy Management), partially offset by Networks.
  • Clients Solutions driven by sustained revenues growth (+10%) and good COI1 performance of decentralized activities.
  • ENGIE confirms its 2019 guidance3 for net recurring income Group share (in a range of EUR 2.5 billion to EUR 2.7 billion) and for the net financial debt / EBITDA ratio (equal to or below 2.5x excluding the TAG acquisition).

Key financial figures

Presenting the financial information as of September 30, 2019 Isabelle Kocher, ENGIE’s CEO, said: “Our 9M results confirm ENGIE’s ability to grow following the profound transformation undergone over the last three years. This quarter, our increased wind and solar capacity and the Microsoft PPA demonstrate the accelerated development of our Renewables portfolio. The acquisition of Conti in the United States and the launch of ENGIE Impact are two other milestones in the Group’s drive to boost the zero-carbon transition of our clients. ENGIE’s underlying organic performance in Thermal is also solid, across several regions and across both contracted and merchant operations, while we continue to optimize our Networks businesses and integrate the exciting acquisition of TAG in Brazil. Lastly, we confirm our guidance for 2019.”

  • Nuclear was driven by higher availability of Belgian production units and achieved price improvement;
  • Networks were impacted by several factors in France that were expected and are mostly temporary, particularly in gas transmission with tariff linearization and in gas storage with customer penalties due to temporary technical issues. Networks also benefited from the first contribution of TAG in Brazil, acquired earlier this year;
  • In Others, Energy management results were strong, mainly driven by gas contract renegotiations and international activities;
  • Supply activities continued to be impacted by a difficult market context, mainly from margin contractions in French retail;
  • Client Solutions results benefited from an increased level of activity, notably driven by the performance of decentralized activities. SUEZ one-offs additionally contributed positively;
  • Thermal benefited from liquidated damages (LDs) and positive Power Purchase Agreement (PPA) effects in Latin America, as well as from positive contribution from gas power plants in Australia. Nevertheless, these activities were affected mainly by the disposal of Glow;
  • Renewables benefited from the steep acceleration in asset commissioning and development of wind & and solar capacities with 1.8 GW installed over the first nine months and now 8.8 GW secured out of the target of 9 GW to be installed by 2021. On hydro power production, lower volumes in France had a significant negative impact year on year.

Analysis of financial data as of September 30, 2019

Revenues of EUR 46.8 billion

Revenues were EUR 46.8 billion, up 8.8% on a gross basis and 7.9% on an organic2 basis.

Reported revenue growth includes a slightly positive foreign exchange effect, mainly due to the appreciation of the US dollar, partly offset by the depreciation of the Argentinian peso and the Brazilian real against the euro, and to an aggregate positive scope effect. Changes in the scope of consolidation included various acquisitions in Client Solutions (primarily in the United States, in Latin America and in France) and in business Supply in the US, partly offset by the disposals of the stake of Glow in Thailand in March 2019 and of the business Supply activities in Germany at the end of 2018.

Organic2 revenue growth was primarily driven by effective energy management services and favorable market conditions for Global Energy Management (GEM) activities, by Thermal in Europe with higher volumes sold, by growth in Client Solutions in France and Europe, by a wide ranging momentum in Latin America (tariff increases in Mexican and Argentinian gas distribution activities, PPA portfolio growth in Chile and dynamic energy allocation as well as commissioning of new wind farms in Brazil), and by Supply activities (benefitting from a favorable market context for business customers in France, higher power sales in France both to business and retail customers and positive price effects in Belgium, Romania and in the United States). This growth was partly offset by lower revenues from gas storage activities with less purchase/sale operations in France and in the United Kingdom.

Clients Solutions revenues were up 10% on a gross basis and 3% on an organic2 basis.

EBITDA of EUR 7.1 billion

EBITDA was EUR 7.1 billion, up 4.9% on a gross basis and 7.1% on an organic2 basis. These gross and organic2 variations are globally in line with current operating income1 growth, except for the positive one-offs in SUEZ (mainly linked to the settlement of the Argentina court case in 2019) which are not booked at EBITDA level.

Current operating income1 of EUR 3.8 billion

Current operating income including share of net income of entities accounted for using the equity method (COI) amounted to EUR 3.8 billion, up 9.0% on a reported basis and 13.6% on an organic2 basis.

Reported COI1 increase includes a positive foreign exchange effect, mainly due to the appreciation of the US dollar, partly offset by the depreciation of the Argentinian peso and the Brazilian real against the euro, and to an aggregate negative scope effect. This negative scope effect stems mainly from the sale of Glow, partly offset by various acquisitions predominantly in Networks (TAG), Client Solutions and Renewables.

Based on the reporting segments, the organic2 COI1 growth was mainly driven by Latin America (notably due to the favorable impact of LDs received for Thermal activities in 2019, better performance of hydroelectric power generation and commissioning of new wind and solar assets in Brazil as well as PPA portfolio growth in Chile), by the Rest of Europe (mainly driven by the very strong performance of Nuclear activities with better availability and higher prices, partly offset by decreasing Supply activities in Benelux and Romania), by the Others segment (mainly due to GEM’s good performance in market activities, positive one-offs in SUEZ, higher power margins for business Supply in France; partly offset by some headwinds at Tractebel), and by Middle East, Africa & Asia (mainly driven by higher achieved margins and generated volumes in Thermal generation in Australia; partly offset by a negative temperature effect for Australian Supply).

These positive impacts are partly offset by an organic2 COI1 decrease in France (for France excluding Infrastructures, mainly due to the impact of lower hydroelectric power generation and to margin pressure in Supply activities, partly offset by increasing wind and solar contributions and improved performance on decentralized energy; for France Infrastructures, mainly due to the transmission activity and, to a lesser extent, to the storage profits) and in USA & Canada (mainly driven by Client Solutions, notably due to negative one-offs booked in 2019, by the lower contribution from Thermal activities due to higher costs for LNG sourcing in Puerto Rico, and by the temporary margin pressure on business Supply activities; partly offset by DBSO sell down contribution in Renewable activities).

Organic2 COI1 performance varied also across the Group’s business lines with growth for all business lines except for Networks and Supply:

COI performance

  • Client Solutions reported a 6% organic2 COI1 increase, benefitting from a good commercial performance, an increased contribution of decentralized energy activities and positive one-off from SUEZ linked to the Argentina court case. In addition, restructuring actions are underway in some entities, particularly in Canada.
  • Networks reported a 9% organic2 COI1 decrease. This decrease is mainly due to transmission activities in France from the effects of the merger of the zones (end of subscriptions on North-South transit), mainly caused by the tariff linearization mechanism and higher than expected congestion costs. To a lesser extent, storage profits were impacted by customer penalties due to technical issues in France and negative price effects in Germany. Lastly, a positive one-off was recorded in 2018 in Latin America. Tariff increases in Mexican and Argentinian gas distribution activities only partly offset these negative effects.
  • Renewables reported a 3% organic2 COI1 increase. This was primarily driven by the 1.8 GW commissioning of new wind farms and solar plants since January 1st, 2019, notably in Brazil (0.5 GW) and the US (0.5 GW), and by a better performance of hydroelectric power generation in Brazil. These positive effects were partly offset by the lower hydroelectric power generation in France.
  • Thermal showed a significant 25% organic2 COI1 increase. This increase is mainly attributable to the favorable impact of LDs received in Latin America in 2019, the PPA portfolio growth in Chile and the higher margin achieved and volumes generated in Thermal activities in Australia. These positive effects were partly offset by the suspension of capacity market revenues in the United Kingdom, and the lower contribution in the United States due to higher costs for LNG sourcing in Puerto Rico as well as lower spreads in the US North East in the first half of 2019.
  • Nuclear delivered a very significant 56% organic2 COI1 growth, benefitting from higher availability rates in Belgium following 2018 unplanned outages (+ 2,220bps and + 25% volumes produced) and better achieved prices (+ 2€/MWh).
  • Supply COI1 reduced significantly by 27% on an organic2 basis, primarily driven by margin pressures for retail sales in France on market offers in gas and power, by a negative temperature effect in Australia as well as lower results in business sales in Benelux and in the United States. These effects were partly offset by higher power margins for business supply activities in France.
  • The Others segment delivered a very significant 65% organic2 COI1 growth, mainly reflecting GEM’s good performance on market activities notably with strong positive impact from gas contract renegotiations and significant positive timing effects, as well as lower Corporate costs.

Net financial debt at EUR 26.7 billion

At the end of September 2019, net financial debt stood at EUR 26.7 billion, up EUR 3.4 billion compared with December 31, 20185. This variation was mainly due to (i) capital expenditures over the period (EUR 7.0 billion8 , including notably the EUR 1.5 billion expenditures for the TAG transaction in Brazil), (ii) dividends paid to ENGIE SA shareholders (EUR 1.8 billion) and to non-controlling interests (EUR 0.7 billion) and (iii) other elements (EUR 0.5 billion) mainly related to foreign exchange rates, new right-of-use assets accounted for over the period and mark-to-market variation. These items were partly offset by (i) cash flow from operations7 (EUR 4.0 billion) and (ii) the impacts of the portfolio rotation program (EUR 2.6 billion, mainly related to the completion of the disposal of the stake in Glow). In particular, ENGIE paid a higher than usual dividend in the first three quarters of 2019 (EUR0.75 per share paid in May but no more interim dividend paid in October).

Cash flow from operations7 amounted to EUR 4.0 billion, down EUR 1.0 billion. The decrease stemmed chiefly from temporary working capital requirement variations (EUR 1.6 billion negative impact) caused by margin calls on derivatives and mark-to-market variation of financial derivatives, partly offset by the increase of operating cash flow (EUR 0.4 billion) and lower tax and interests paid (EUR 0.1 billion).

At the end of September 2019, net financial debt to EBITDA ratio amounted to 2.7x. Excluding the TAG acquisition which does not yet materially contribute to the EBITDA, this ratio amounted to 2.5x, slightly increasing compared with the end of 20185 and on the target of less than or equal to 2.5x. The average cost of gross debt was 2.73%, slightly up compared with the end of 2018, notably due to new borrowings in Brazil. At the end of September 2019, net economic debt9 to EBITDA ratio stood at 4.0x. Excluding the TAG acquisition, this ratio stood at 3.8x, slightly increasing compared with the end of 20185.

The Group’s robust financial structure has been reaffirmed by S&P, which confirmed its A- rating in April, and by Fitch, which confirmed its A rating in June, both maintaining their stable outlook. In June, as announced, Moody’s downgraded its rating from A2 to A3 following the adoption of the Loi PACTE in France which has prompted a reappraisal of its one notch uplift for government support.

2019 financial targets3

ENGIE confirms its financial anticipations for 20193:

  • a net recurring income Group share (NRIgs) between EUR 2.5 and EUR 2.7 billion. This guidance is based on an indicative range for the EBITDA of EUR 9.9 to 10.3 billion,
  • a net financial debt / EBITDA ratio below or equal to 2.5x excluding the TAG acquisition,
  • an ‘A’ category credit rating.

Operational milestones: towards a zero-carbon transition

ENGIE continued to pursue its strategy, focused on zero-carbon transition leadership in the first three quarters of 2019.

In Client Solutions, ENGIE and its partners were awarded a 35-year energy efficiency contract in Ottawa to deliver and modernize heating and cooling systems for Government of Canada buildings. In addition, ENGIE acquired Conti, a North American provider of services to the building, design, engineering and construction sectors. Lastly, GE Renewable Energy has chosen ENGIE Impact, our recently launched consulting entity, to help meet its aggressive zero-carbon goal by 2020.

In Networks, ENGIE announced on June 13, 2019 that the consortium in which it holds a majority stake completed the acquisition of a 90% shareholding in TAG, owner of the largest Brazilian gas transmission network. TAG’s portfolio of long-term contracts provides an attractive earnings stream and rebalances ENGIE’s geographic exposure in Networks activities.

In Renewables, 1.8 GW of wind and solar capacity was commissioned in the first three quarters, confirming a marked acceleration after the commissioning of 1.1 GW for the full year 2018, and 8.8 GW are now installed, under construction or secured to reach the 9 GW target of commissioning over 2019-21. The new joint-venture in Mexico with Tokyo Gas and the long-term solar and wind energy PPAs announced with Microsoft and Walmart in the US demonstrate our ability to deploy our DBSO7 model and attract strong partners to accelerate the development of our portfolio both for installed capacities as well as for corporate PPAs. In offshore wind, the signing of a strategic Memorandum of Understanding with EDP aims at creating a leading global player.

In Thermal, ENGIE continued to execute its strategy of carbon footprint reduction. ENGIE closed the disposal of its 69.1% stake in Glow in Thailand (3.2 GW of generation capacity, of which 1.0 GW is coal), ending its participation in coal in Asia-Pacific. ENGIE also announced the disposal of its German and Dutch coal assets (capacity of 2.3 GW), reducing coal to c. 4% of its global power generation capacity after closing of this transaction.

The presentation of the Group’s financial information as of September 30, 2019 used during the investor conference call is available to download from ENGIE’s website.

Events

contributive revenues

Revenues for France increased by 4.3% on a gross basis and by 2.8% on an organic2 basis. For France excluding Infrastructures, revenues increased by 5.9% on a gross basis and by 5.0% on an organic2 basis. The higher gross increase than the organic2 decrease is explained by the acquisition of several companies in the Client Solutions activities. The organic2 increase is mainly due to higher sales in Client Solutions activities (installations, construction and energy efficiency) as well as in retail power supply and is partly offset by the lower hydroelectric power generation and by lower gas sales volumes (due to a reduction of the customer base in retail gas supply and a negative temperature effect).

For France Infrastructures, revenues were flat on a gross basis and decreased by 2.7% on an organic2 basis. The organic2 decrease is due to gas storage with a reduction in purchase/sale operations in France as a result of the new regulatory framework implemented in 2018 and lower gas storage revenues in the United Kingdom, partly offset by the distribution activity, which benefitted from tariff increases of July 1, 2018 (+2.0%) and July 1, 2019 (+0.5%). On a gross basis, this organic2 decrease is offset by the outsourcing of LNG activities.

Revenues for Rest of Europe were up 11.5% on a gross basis and 12.6% on an organic2 basis. Revenue growth was driven mainly by Thermal activities (benefiting from favorable volume and price effects, partially offset by the suspension of the capacity remuneration mechanism in the United Kingdom since October 1, 2018, resulting in the non-recognition of the corresponding revenues), by Client Solutions activities in Belgium (notably on installation and energy efficiency) and in Spain (mainly on installation), by Nuclear recovery both in volumes and price and by Supply activities in Benelux (fueled by positive price effects) and in Romania. On a gross basis, this organic2 increase is partially offset by the sale of the BtoB Supply activities in Germany at the end of 2018 despite contributions of several tuck-in acquisitions in Central Europe (notably OTTO in Germany).

Revenues for Latin America increased by 14.9% on a gross basis and by 11.7% on an organic2 basis. Gross growth includes the positive impact of the integration of a Client Solutions service company (CAM) acquired at the end of 2018, partially offset by a globally unfavorable exchange rate effect, driven by the depreciation of the Argentinian peso (- 53%) and the Brazilian real (- 2%), only partially compensated by the appreciation of the US dollar (+ 6%), Mexican peso (+ 5%) and Peruvian sol (+ 4%). In Brazil, organic2 growth was mainly due to dynamic hydro energy allocation and to the commercial commissioning of new wind and solar farms. In Chile, the business was positively impacted by the ramp up of long-term PPAs.

Revenues for USA & Canada were up 33.5% on a gross basis and 8.5% on an organic2 basis. They benefited from a positive exchange rate effect due to the appreciation of the US dollar and positive scope effects due to the contribution of acquisitions in Client Solutions (Donnelly, Unity, Systecon) and in power Supply activities (Plymouth Rock) in the USA. The organic2 growth was mainly due to a positive price effect in the power B2B Supply activities in the USA.

Revenues for Middle East, Africa & Asia were down 22.9% on a gross basis and 3.8% on an organic2 basis. The higher gross decrease is mainly due to the negative scope effect of the disposal of Glow (Thailand) in March 2019, partly offset by acquisitions in Client Solutions in the Middle East (Cofely BESIX) and Asia as well as by positive currency effects mainly linked to the appreciation of the US dollar. On an organic2 basis, Supply showed a lower performance (mainly in Australia) and Customer Solutions activities delivered lower revenues in Africa and Australia.

Revenues for the Others segment increased by 15.2% on a gross basis and by 11.9% on an organic2 basis. This increase is mainly due to the GEM activities fueled by growth in international activities and gas contracts renegotiation as well as to Supply activities benefitting from a favorable market context for business customers in France.

Contributive revenues by business line:

Contributive revenues by business line

organic growth

The calculation of organic2 growth aims to present comparable data both in terms of the exchange rates used to convert the financial statements of foreign companies and in terms of contributing entities (consolidation method and contribution in terms of comparable number of months). Organic2 growth in percentage terms represents the ratio between the data for the current year (N) and the previous year (N-1) restated as follows:

  • The N-1 data is corrected by removing the contributions of entities transferred during the N-1 period or pro rata temporis for the number of months after the transfer in N.
  • The N-1 data is converted at the exchange rate for the period N.
  • The N data is corrected with the N acquisition data or pro rata temporis for the number of months prior to the N-1 acquisition.

1 Including share in net income of entities accounted for using the equity method.
2 Organic variation = gross variation without scope and foreign exchanges impacts.
3 These targets and this indication assume average weather conditions in France, full pass through of supply costs in French regulated gas tariffs, no significant accounting changes except for IFRS 16, no major regulatory and macroeconomic changes, commodity price assumptions based on market conditions as of December 31, 2018 for the non- hedged part of the production, average foreign exchange rates as follows for 2019: EUR/USD: 1.16; EUR/BRL: 4.42, and without significant impacts from disposals not announced as of February 28, 2019.
4 Variations vs. 9M 2018.
5 2018 figures adjusted for IFRS 16.
6 Cash flow from operations = Free Cash Flow before maintenance Capex.
7 DBSO = Develop, Build, Share & Operate.
8 Net of DBSO partial sell-downs.
9 Net economic debt amounted to EUR 39.9 billion at the end of September 2019 (compared with EUR 35.7 billion at the end of December 2018); it includes, in particular, nuclear provisions and post-employment benefits.

Important notice

The figures presented here are those customarily used and communicated to the markets by ENGIE. This message includes forward-looking information and statements. Such statements include financial projections and estimates, the assumptions on which they are based, as well as statements about projects, objectives and expectations regarding future operations, profits, or services, or future performance. Although ENGIE management believes that these forward-looking statements are reasonable, investors and ENGIE shareholders should be aware that such forward-looking information and statements are subject to many risks and uncertainties that are generally difficult to predict and beyond the control of ENGIE, and may cause results and developments to differ significantly from those expressed, implied or predicted in the forward-looking statements or information. Such risks include those explained or identified in the public documents filed by ENGIE with the French Financial Markets Authority (AMF), including those listed in the “Risk Factors” section of the ENGIE (ex GDF SUEZ) reference document filed with the AMF on March 20, 2019 (under number D.19-0177). Investors and ENGIE shareholders should note that if some or all these risks are realized they may have a significant unfavorable impact on ENGIE.

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ENGIE to explore energy efficiency solutions for industrial buildings in Singapore

ENGIE, a global leader in energy services, and JTC, Singapore’s leading industrial developer, announce the signing of a Memorandum of Understanding (MoU) to engage in joint research and development (R&D), test-bedding and pilot deployment of advanced clean energy solutions in JTC’s industrial buildings.

ENGIE will harness its cutting-edge technologies and research expertise to potentially create and build environmental solutions for lower life cycle cost, higher productivity and optimized sustainability and resilience for Singapore’s industrial landscape.

Shankar Krishnamoorthy, ENGIE Executive Vice President in charge of Strategy & Innovation declared: “Client solutions to support the carbon neutrality of buildings are at the heart of ENGIE’s strategy towards zero-carbon transition. We look forward to collaborating with JTC to improve Singapore’s efforts in terms of energy efficiency.

With 110,000 employees worldwide working on energy efficiency, ENGIE accelerates the zero-carbon transition of its customers.

JTC oversees more than 80% of the country’s industrial buildings and close to 6 million square metres of ready-built facilities in Singapore.

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ENGIE and C3.ai Launch AI-powered Energy Management Solution for Large Institutions

ENGIE, and C3.ai, a leading enterprise Artificial Intelligence (A.I.) software provider for accelerating digital transformation, announce the launch of “Smart Institutions”, an AI-powered, holistic Energy-as-a-Service software solution for universities, municipalities, corporate campuses, and hospitals.

Designed by ENGIE Digital, the Group’s software entity, in partnership with C3.ai, “Smart Institutions” enables organizations to proactively and automatically manage their buildings and energy assets to increase sustainability, enhance energy efficiency and pave the way for their zero carbon transition. The software was first deployed at The Ohio State University as part of a plan to reduce energy use across the 485-building campus in Columbus.

When we launched our work with The Ohio State University two years ago, we looked forward to advancing new possibilities, from improving ways to heat, cool, and power the campus to collaborating on potentially transformational technologies and services that someday could be shared far beyond Columbus,” said Gwenaëlle Avice-Huet, Group Executive Vice President and CEO of ENGIE’s North America Business Unit. “Collaborating with C3.ai on the development of of “Smart Institutions” has enabled us to create our own new technology solution, leading the way to the zero carbon transition for large institutions.

C3.ai is accelerating digital transformation for leading organizations across every industry,” said Ed Abbo, President and Chief Technology Officer, C3.ai. “An Energy-as-a-Service software solution powered by the C3 AI platform, “Smart Institutions” is enabling cutting-edge organizations to set the standard for energy transformation initiatives.

Through “Smart Institutions”, ENGIE and C3.ai can use AI to help campuses and other large institutions achieve their sustainability and financial objectives through:

    • Energy optimization: The ability to predict energy consumption, and then optimize across the entire network to reduce costs, including production, distribution, and consumption.
    • Capital planning: The ability to plan long-term capital improvements using dynamic building and network modeling.
    • Campus engagement: The ability to use data and behavioral science techniques to engage students and faculty to reduce their environemental impact.

    In 2017, Ohio State Energy Partners, a consortium of ENGIE North America and Axium Infrastructure, signed a 50-year Comprehensive Energy Management Contract with The Ohio State University. Ohio State Energy Partners looks to drive energy savings and enable end-to-end optimization of the campus energy infrastructure to achieve a 25 percent improvement in energy efficiency over 10 years.

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    ENGIE and Anglo American to co-develop renewable hydrogen solution to decarbonize the mining industry

    ENGIE, leader of the zero-carbon transition and Anglo American, leading global mining industry player, announced today their agreement to co-create and fuel the first hydrogen-powered mining haul truck.

    This project is part of ENGIE’s strategy to promote renewable hydrogen to help its customers decarbonize their operations. It is aligned with Anglo American’s initiatives towards mining with zero climate impact.

    This collaboration between the two companies marks the first time a truck of this size and load capacity (300 metric tons) will be converted to run on hydrogen. ENGIE will provide the hydrogen generation solutions while Anglo American will develop the truck.

    The modifications to the existing truck include replacing the diesel tank with hydrogen tanks, and replacing the engine with hydrogen fuel cells and a battery pack. The hydrogen will be provided by the solar power generation capacity at the mining site.

    First motion of the hydrogen powered truck is expected in 2020, followed by a testing and validation program at Anglo American’s Mogalakwena Platinum Group Metals mine in South Africa, after which additional trucks are expected to be rolled out at other Anglo American operations.

    “We are delighted to join forces with Anglo American to design the first solution that aims to decarbonize heavy-duty mobility in the mining sector. This is part of ENGIE’s strategy to develop industrial-scale hydrogen-based solutions to help our energy-intensive customers in their journey to carbon neutrality”, said Michèle Azalbert, CEO of ENGIE’s Hydrogen Business Unit.

    Tony O’Neill, Technical Director of Anglo American, commented: “We are extremely pleased to be partnering with ENGIE, and we look forward to developing and implementing this step-change technology.”

    The mining sector operates in challenging conditions and represents a high portion of the global energy consumption. Jointly developing the hydrogen-powered truck is the first step to achieving both companies’ common ambition to decarbonize the mining sector, one of the key sectors in the energy transition.

    The agreement was signed onboard the ENERGY OBSERVER during its London stopover. The first fully electric vessel traveling around the world, powered exclusively by hydrogen and renewable energies, the ENERGY OBSERVER demonstrates a full decarbonization solution that ENGIE is developing on an industrial scale.

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    ENGIE and Heliox sign electric mobility service contracts across 9 European countries

    ENGIE has signed a service framework agreement with Heliox, the global market leader in fast charging electric systems for the public transport sector. ENGIE will provide installation, operation and maintenance services for Heliox’s electric bus charging infrastructure. The partnership covers 9 European countries: the Czech Republic, Germany, Greece, Italy, Portugal, Romania, Spain, the Netherlands and the United Kingdom.

    Thanks to this agreement, public transport operators will benefit from Heliox’s full range of innovative charging solutions, from fast opportunity charging to overnight charging at the depot. ENGIE will provide its electro-mobility expertise thanks to its local teams able to deliver high-voltage electrical installation, civil works, power supply, interfaces with existing equipment on customer premises, and day-to-day operation and maintenance of the infrastructure.

    “Mobility is one of the priority levers to achieve the zero-carbon transition. Thanks to our expertise in energy and complex infrastructure management, ENGIE is a key actor in sustainable mobility, including in public transport infrastructure. Our partnership with Heliox demonstrates our shared vision for electrification of transport”, said Shankar Krishnamoorthy, ENGIE’s Executive Vice-President.

    Mark Smidt, Managing Director Heliox Automotive BV, stated: “Heliox is extending its charging infrastructure network around Europe and is looking for trusted and reliable partners to further sustain the operation of electric vehicle fleets of existing bus manufacturers. Signing this service framework agreement with ENGIE is a key step to prolong and intensify future cooperation.”

    As a leader in sustainable mobility, ENGIE supports its customers in the adoption of high-performance and innovative solutions adapted to their needs and those of the region. Heliox’s ambition in creating a sustainable world for future generations has already been substantiated in the worldwide implementation of extensive turnkey projects with any possible charging infrastructure and proven interoperability with leading bus manufacturers.

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    ENGIE welcomes measures to support the competitiveness of renewable heating and cooling networks

    Élisabeth BORNE, Minister for Ecological and inclusive transition and Emmanuelle WARGON, Minister of State attached to the Minister for Ecological and inclusive transition, today announced 25 measures in favor of district networks covering the following themes:

    • Mobilization and attractiveness of the regions
    • Consumer information and protection
    • Economic competitiveness of the networks
    • Greening of the energy delivered by the networks
    • Innovation and R&D

    Launched in March at Emmanuelle WARGON’s initiative as part of the plan to “liberate renewable energy”, the “renewable heating and cooling” working group aims to promote the greening and development of the French district networks sector.

    These proposals will accelerate the need for sustainable urban development, part of the zero-carbon strategy at ENGIE, which has long been committed to developing its know-how around strong trends: greening the energy mix, digitizing energy activities, energy conservation and decentralization of production and consumption systems for greater energy efficiency.

    “We are pleased that these measures in favor of district networks were announced during the ministerial visit to the Grand Reims heating network, which we operate. It will be 90% supplied by renewable energies by 2022. Heating and cooling networks are powerful tools in the zero-carbon transition because they allow a massive reduction in energy consumption while facilitating the use of renewable sources”, said Isabelle Kocher, ENGIE’s CEO. “Today, ENGIE operates the largest heating network in France and the largest cooling network in Europe. We are world number 1 in cooling networks”, she added.

    Leader in the sector in France, ENGIE designs, funds, constructs and operates district heating and cooling networks. The preferred partner for regions that want to remain attractive and competitive, the Group supports its clients in the implementation of their low-carbon energy transition by setting up the infrastructure to enable sustainable development.

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    ENGIE strengthens its local roots in Belgium and reviews the governance of Electrabel to create more openness

    Belgium is a key country for ENGIE, which wants to make it a champion in energy efficiency. As ENGIE leads the country in green energy production, energy supply and energy efficiency for professional and institutional customers, it is in the best possible position to achieve this ambition in the service of Belgium and the Belgian people.

    To make an even better contribution to the country’s climate – and energy-related challenges and improve its efficiency, ENGIE is reviewing the governance of Electrabel to create more openness and to further develop its roots in the country.

    The governing bodies of Electrabel appointed five new directors, two of them external, on Thursday 3 October. Johnny Thijs and Etienne Denoël join the Board of Directors as external directors of Electrabel SA. Johnny Thijs becomes Chairman of the Board. Philippe van Troeye remains Managing Director of Electrabel SA.

    The presence of Johnny Thijs and Etienne Denoël in the center of Electrabel’s governing bodies will enable the company to open up and to reinforce the dialogue between the company and its stakeholders. Their personalities are complementary. They are determined to strengthen the role of Electrabel SA, a fully-owned subsidiary of ENGIE, in contributing to the country’s climate- and energy-related challenges.

    Isabelle Kocher, CEO of ENGIE says: “ENGIE’s ambition is to become a leader of the zero-carbon transition by offering its clients innovative, tailor-made and funded solutions. Belgium is a historic country but above all a country of the future for the Group, because it brings together all of our expertise. It is a crucial area where synergies have intensified in recent years and where we are convinced that the potential for energy efficiency is immense. I warmly welcome the arrival of Johnny Thijs and Etienne Denoël as external directors of Electrabel SA. Their extensive professional experience and their sensitivity to the realities of Belgian economic and social life will be of great value in making Electrabel more transparent and making its mission clearer in Belgium.”

    Johnny Thijs, Chairman of the Electrabel Board of Directors says: “I am enthusiastic about joining the Electrabel Board of Directors as Chairman. Energy efficiency is a huge challenge in Belgium. I am convinced that Electrabel can enable its Belgian customers to make a difference and that it will be a reference partner in enabling the country and its regions to achieve their climate and energy objectives. New capacity in renewable energy, mobility and tailor-made solutions for power-intensive users are some of the areas in which Electrabel is determined to move forward.”

    Etienne Denoël, Director of Electrabel: “Strengthening the local roots of ENGIE and its subsidiaries can only be achieved by improving dialogue with stakeholders. It is in this spirit of openness and dynamism that I am joining Electrabel’s Board of Directors. Today, companies are no longer just economic actors. They have the role of moving the country forward – particularly through research and innovation – in response to the challenges that arise whilst creating a close network with all social actors.”

    Biographies

    Johnny THIJS

    Johnny Thijs

    Johnny Thijs began his career in Marketing & Sales with well-known groups active in mass consumption and mass distribution such as Rothmans Int., Master Foods and Kraft Jacobs Suchard. He joined the Interbrew Group (now AB Inbev) in 1991, and was appointed CEO Europe, Africa and Asia Pacific in 1995.

    In 2002 Johnny became CEO of the Belgian postal service (now BPost). He successfully turned the business around and steered it through a partial privatisation in 2006, followed by a stock market flotation in 2013.

    He left BPost in 2014 to become a Director of a number of private and listed companies. Johnny is currently Chairman of the Board of Recticel, Corealis, Golazo and Hospital Logistics, and a Director of H. Essers. He also serves as an adviser to CVC and Lazard Benelux.

    Johnny Thijs holds a degree in Commercial Engineering from the University of Hasselt.

    Etienne DENOËL

    Etienne Denoël is Director Emeritus of consulting firm McKinsey, for which he worked from 1987 to 2018 as a consultant to private companies and public sector institutions. He has undertaken a number of assignments in Europe and North America in the energy, industry and services sectors. In 2000 he established the McKinsey Solutions, Research and Knowledge Center in Belgium (Louvain-la-Neuve).

    Etienne Denoël

    Since 2007, he has also been involved in education, supporting a range of initiatives such as the non-profit organisation Teach For Belgium, the Foundation for Education (Fondation pour l’Enseignement) and the Pact for Excellence in Teaching (Pacte pour un Enseignement d’Excellence), an initiative sponsored by the Government and organisations in the Wallonia-Brussels Federation. In September 2018, he left McKinsey to become CEO of Act for Education (Agir pour l’Enseignement), also a non-profit organisation.

    From 1984 to 1986, he worked for Philips as a research engineer in the fields of Artificial Intelligence and Expert Systems.

    Etienne holds a degree in Electrical Civil Engineering from the Université Catholique de Louvain (1978-1983) and three additional Master’s degrees:

    • Master of Science in Electrical Engineering, University of Southern California, Los Angeles (1983-1984)
    • Special Degree in Management, Université Libre de Bruxelles (1984-1986)
    • Master of Science in Engineering & Economic Systems, Stanford University, Palo Alto (1986-1987)

    He is a Fellow of the Francqui Foundation and the Belgian American Educational Foundation (BAEF).

    The Board of Directors of Electrabel SA :

    • Johnny Thijs, Chairman of the Board of Directors
    • Philippe Van Troeye, CEO
    • Paulo Almirante
    • Pierre Chareyre
    • Etienne Denoël
    • Judith Hartmann
    • Cedric Osterrieth
    • Thierry Saegeman
    • Patrick van der Beken

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    Appointment

    Claire Waysand

    Claire Waysand is appointed Executive Vice President and General Secretary of the Group, effective 1 October, and will be replacing Pierre Mongin.

    Claire Waysand is a former student of the Ecole Polytechnique and a graduate of the Ecole Nationale de la Statistique et de l’Administration Economique and of the London School of Economics where she obtained a Master’s of science in economics. She also has a PhD in economics.

    Claire Waysand began her career at INSEE, before going on to hold various positions within the French Treasury Department. As such, she served as a member of the European Economic and Financial Committee (EFC) from 2005 to 2009 and was a director of the European Investment Bank (EIB).

    Claire Waysand joined the International Monetary Fund in Washington in 2009, as assistant director of the Europe department, and then the Strategy, policy and review department.

    After having served as Deputy Director of the Treasury, Claire Waysand became Deputy chief of staff of Prime Minister Jean-Marc Ayrault in 2013, taking over as Chief of staff of the Minister of Finance and Public Accounts, becoming the first woman to head the Finance cabinet.

    Since 2016, she has been Inspector-general of finance, has been a director of Radio France and teaches at the Institut d’Etudes Politiques de Paris (Sciences Po).

    Claire Waysand takes over from Pierre Mongin who, after more than four years helping to drive the Group’s transformation, had expressed his intention to start standing down over the course of the year. He will act as Senior Advisor to the CEO until he leaves the Group at the end of 2019, after which he plans to concentrate on personal projects.

    Isabelle Kocher, ENGIE CEO, said: “I would like to thank Pierre Mongin once again for his work over the past four years and for the impact he has had on the Group’s transformation, in which he has played a key role. I am delighted that he can continue to provide us with his expertise until the end of this year. I also welcome the arrival of Claire Waysand, whose wealth of experience is a new asset for ENGIE and for the executive committee.”

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    Microsoft and ENGIE announce renewable initiatives

    Microsoft and ENGIE today announced both a long-term solar and wind energy power purchase agreement (PPA) in the United States and implementation of Darwin, an energy software developed by ENGIE using Microsoft Azure’s intelligent cloud services to optimize performance of ENGIE’s wind, solar, and hybrid (wind + solar) renewable assets worldwide.

    The renewable deal will see Microsoft purchase a total of 230 MW from two ENGIE projects in Texas, bringing Microsoft’s renewable energy portfolio to more than 1,900 MW. Microsoft will purchase the majority of the output from the new Las Lomas wind farm, to be located in Starr & Zapata Counties in south Texas and from the Anson Solar Center park, which will be built in Jones County, central Texas. Both projects will be operated by ENGIE and are expected to come on-line in January 2021.

    ENGIE’s ambition is to help companies and local governments reach carbon neutrality. We are delighted to establish a long-term partnership with a world renowned company like Microsoft. ENGIE will provide electricity produced from renewables and implement Darwin, our pioneering software solution. Our integrated approach to energy uses is commended by such an important partnership” said Isabelle Kocher, CEO of ENGIE.

    The relationship between ENGIE and Microsoft will not only add more clean energy to the grid in the United States, it also creates an example for how customers can procure it. This PPA includes an innovative volume firming agreement that will convert the intermittent renewable energy supply into a fixed 24/7 power solution aligned with Microsoft’s energy needs.

    In addition, ENGIE and Microsoft are advancing the digital transformation of the renewable energy sector. ENGIE’s Darwin software, currently deployed on more than 15,000 MW of assets globally, enables predictive maintenance, real-time meteorological data analysis, and real-time monitoring of the output of the assets, among many other benefits, using intelligent cloud technologies.

    Procuring more renewable energy helps to transform our operations, but when we pair that with Microsoft’s leading cloud and AI tools, we can transform the world,” said Carlo Purassanta, Microsoft President, France. “This agreement with ENGIE is an exciting step towards a low-carbon future, driven by capital investments and enabled by data.

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