Tüpraş aims to become carbon neutral by 2050
Tüpraş announced its "Strategic Transformation Plan” in coordination with Koç Group’s Carbon Transition Program, aiming to maintain its leadership in the future of energy. The company has committed to reduce its carbon emissions by 27% by 2030 compared to 2017, and to become carbon neutral by 2050, focusing on energy efficiency and expanding into new areas. Tüpraş plans to dedicate a large part of its investments to new energy sources such as sustainable aviation fuels (SAF), green hydrogen and zero-carbon electricity.
Tüpraş General Manager İbrahim Yelmenoğlu: “We are transforming to contribute to a more sustainable world while producing the energy of the future. Going forward, we aspire to become a key player in alternative energy generation as well, while reducing carbon emissions from refinery operations. Our ambition is to strengthen our position as Turkey's largest industrial company by producing different types of energy with an integrated and carbon-neutral business model and lead our country’s clean energy transformation.”
Pioneering the Turkish energy industry for 60 years, Tüpraş announced its Strategic Transformation Plan to produce the energy of the future, at a hybrid press conference held at the company's new Head Office in İstanbul, Mecidiyeköy.
According to the Strategic Transformation Plan, Tüpraş aims to lead the transformation of Turkey's energy industry through investments in new areas to support its sustainability while managing existing assets to achieve sustainable profitability growth. Additionally, along with a balanced and diversified clean energy portfolio, Tüpraş aims to become a carbon-neutral company by reducing its emissions.
"Energy to the Future" is the motto of the new strategic plan which strives for a sustainable world and the balance of life. Tüpraş aims to fund this transformation by improving existing operations through investments in efficiency and in production of higher value-added streams. The company initially plans to allocate majority of its new energy investments to zero-carbon power required to establish an integrated business model with green hydrogen generation, and rest of its investments on biofuels and electrolysis plants.
Tüpraş commits to reduce its Scope 1 and 2 emissions initially by 27% by 2030 and 35% by 2035, compared to 2017 base year. As of 2050, the company aims to become a carbon-neutral energy company.
Key figures
- As part of its Strategic Transformation Plan, with an annual average investment of $350 MM, Tüpraş aims to invest approximately $5 B by 2035 and $10 B by 2050.
- The investments are expected to boost annual EBITDA of Tüpraş by 30% compared to last 5 year average, reaching $1.3 B in 2030 and plans are in place to maintain this level on average until 2035 as new investment areas start to make higher contribution.
- By 2035, 30% of EBITDA is expected to come from new lines of business; namely SAF, green hydrogen and zero-carbon electricity sales.
- The company aims to pay out an average of 80% of its distributable profit as dividends as it sustains operating profit.
- Tüpraş, is to set aside $50 MM for venture capital investments until 2030 to capitalize new technologies and business models in the energy transformation.
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