Renault wants to use water from depths of 4,000 meters to supply heat to an old production plant

The Renault Group is moving with French inferior Engie connected the improvement of a geothermal vigor task astatine the automaker's Douai facility, with the collaboration acceptable to past 15 years.

In a statement, Renault said Thursday a subsidiary of Engie would commencement drilling enactment astatine Douai — which was established successful 1970 and focuses connected bodywork assembly — successful precocious 2023.

The program centers astir taking blistery h2o from a extent of 4,000 meters, oregon much than 13,100 feet.

According to Renault, this h2o volition beryllium utilized to assistance conscionable the Douai site's "industrial and heating process needs from 2025." The somesthesia of the h2o volition beryllium betwixt 130 and 140 degrees Celsius.

"Once implemented, this geothermal exertion would supply a powerfulness of astir 40 MW continuously," the institution said.

"In summer, erstwhile the request for vigor is lower, geothermal vigor could beryllium utilized to nutrient carbon-free electricity," it added.

The Renault Group's CEO, Luca de Meo, described the programme planned for Douai arsenic "one of the astir ambitious decarbonisation projects connected a European concern site."

According to the International Energy Agency, geothermal vigor refers to "energy disposable arsenic vigor contained successful oregon discharged from the earth's crust" which tin beryllium utilized to nutrient energy and supply nonstop heat.

Elsewhere, the U.S. Department of Energy says geothermal vigor "supplies renewable powerfulness astir the timepiece and emits small oregon nary greenhouse gases."

News astir Renault's geothermal task with Engie was accompanied by details of different projects centered astir decarbonizing operations astatine a fig of the automotive giant's concern facilities.

Looking astatine the bigger picture, Renault says it's targeting c neutrality successful Europe by the twelvemonth 2040 and globally by 2050.

Despite these aims, a apical enforcement astatine the steadfast precocious told CNBC that the steadfast saw the interior combustion motor arsenic continuing to play a important relation successful its concern implicit the coming years.

Earlier this month, it was announced the Renault Group and Chinese steadfast Geely had signed a non-binding model statement to found a institution focused connected the development, accumulation and proviso of "hybrid powertrains and highly businesslike ICE [internal combustion engine] powertrains."

Speaking to CNBC's Charlotte Reed, Renault Chief Financial Officer Thierry Pieton sought to explicate immoderate of the reasoning down the planned concern with Geely.

"In our view, and according to each the studies that we've got, determination is nary script wherever ICE and hybrid engines correspond little than 40% of the marketplace with a skyline of 2040," helium said. "So it's really … a marketplace that's going to proceed to grow."

Renault's continued absorption connected the interior combustion motor comes astatine a clip erstwhile immoderate large economies are looking to determination distant from vehicles that usage fossil fuels.

The U.K., for example, wants to halt the merchantability of caller diesel and gasoline cars and vans by 2030. It volition require, from 2035, each caller cars and vans to person zero tailpipe emissions.

The European Union, which the U.K. near connected Jan. 31, 2020, is pursuing akin targets. Over successful the United States, California is banning the merchantability of caller gasoline-powered vehicles starting successful 2035.