TotalEnergies Inks Decade-Long Renewable Energy Agreement With French Paper Producer SWM

TotalEnergies Secures Decade-Long Renewable Power Deal with SWM

TotalEnergies has entered into a ten-year agreement to provide SWM, a leading international manufacturer of paper and fiber-based products, with 800 GWh of renewable electricity annually. This partnership will supply nearly 50% of SWM’s electricity requirements in France, commencing in January 2026.

Supplying Clean Energy to Key Industrial Sites

The renewable electricity will be delivered to three of SWM’s French facilities: Papeteries de Saint Girons, PDM Industries, and LTR Industries. TotalEnergies will utilize approximately 50 MW from its existing renewable energy assets in France to fulfill this contract. The arrangement is structured to provide SWM with a reliable, competitively priced, and low-carbon power supply, specifically designed to meet the demands of energy-intensive manufacturing operations.

Innovative “Clean Firm Power” Approach

TotalEnergies describes this initiative as part of its “clean firm power” portfolio, which blends renewable energy sources with flexible assets to ensure a steady and predictable electricity supply—an essential feature for heavy industry.

Strategic Value of Long-Term Power Agreements

This deal highlights the increasing importance of long-term power purchase agreements (PPAs) for European industrial firms striving to manage energy expenses and achieve decarbonization objectives. For sectors like pulp and paper, where electricity consumption is constant and profit margins are sensitive to price swings, securing firm renewable power is becoming a strategic necessity rather than just an environmental commitment.

Supporting SWM’s Sustainability Goals

For SWM, this contract is a cornerstone of its strategy to significantly cut Scope 1 and 2 emissions by 2033, while also enhancing cost stability across its French operations. The company serves a global market, providing engineered fiber-based materials for industries ranging from packaging and filtration to energy storage and innovative tobacco alternatives.

Expanding TotalEnergies’ Industrial Partnerships

This agreement adds to TotalEnergies’ expanding roster of tailored electricity supply contracts with prominent industrial and technology clients such as Google, Amazon, Microsoft, Air Liquide, Saint-Gobain, and STMicroelectronics. These partnerships are part of the company’s broader vision to make electricity—especially integrated renewable and flexible power—a central pillar of its growth, alongside its traditional oil and gas business.

Ambitious Renewable Energy Targets

By the end of 2025, TotalEnergies reported having over 32 GW of installed renewable electricity capacity worldwide, with a goal of surpassing 100 TWh of net electricity production by 2030. The company emphasizes that combining renewables with storage and gas-fired flexibility is crucial for delivering reliable, large-scale power to industrial customers.

France’s Role in Corporate Renewable Energy

This contract also underscores France’s significance as a leading market for corporate renewable energy agreements, supported by a growing domestic renewables sector and regulatory pressure for industrial emitters to decarbonize without sacrificing competitiveness.

By Charles Kennedy for Oilprice.com