Yahoo Finance TotalEnergies (TTE) Expands Its Renewable Operation in the U.S.
TotalEnergies TTE announced that it has started to construct a solar generating and storage system at John F. Kennedy (JFK) International Airport in partnership with Port Authority of New York and New Jersey and New York Power Authority.
This solar project will be erected in one of JFK International Airport’s long-term parking lots and will produce 12 megawatts (MW) of clean energy, and has an additional 7.5 MW of battery storage to help reduce airport energy use during peak periods. Nearly 50% of the clean energy will be utilized to power the AirTrain rail link that connects JFK International Airport to the greater New York City area, while the remainder will be used by historically disadvantaged households.
TotalEnergies’ Clean Energy Presence Rising in the U.S.
TTE, an integrated multi-energy company, is among the largest renewable energy generators in the United States. TotalEnergies in expanding its footprints in the United States through a portfolio of large-scale solar, battery storage, onsite B2B solar distributed generation, onshore and offshore wind projects. These different renewable energy projects are expected to generate up to 10 gigawatts (GW) of renewable power by 2025 and more than 25 GW by 2030.
Per U.S. Energy Information Administration release, contribution from renewable sources in the U.S. electricity generation will continue to increase and touch 24% in 2024. It is expected to rise further for touching 25% in 2025 from 21% in 2023.
TTE, with its expertise and focus to generate more energy from the clean energy sources, stands to benefit from the rising usage of renewable sources in the United States.
TotalEnergies Long-Term Plans
TotalEnergies goal is to reach net-zero emission by 2050 and has been expanding its global renewable energy portfolio through solar, wind and power storage. It will continue to expand this renewable energy generation business to reach 35 GW in 2025 and more than 100 TWh of net electricity production by 2030.
The company is gradually building a portfolio of low-carbon businesses that could account for 15-20% of sales by 2040. TotalEnergies is committed to integration across the entire electricity value chain and has been investing on a regular basis to further expand its portfolio. It will integrate renewable energy and flexible power generation from natural gas and energy storage to meet its objective.
Renewable Usage on the Rise Globally
Per International Energy Agency (IEA), globally, in the next five years, 3,700 GW of new renewable capacity will come online, driven by supportive policies in more than 130 countries. Per EIA, in 2028, renewable energy sources will account for over 42% of global electricity generation.
These projections from IEA indicates a huge growth prospect for companies operating in the clean energy space. Supportive government policies, concern against emission, ongoing research and development leading to usage of new technology, development of utility scale cost efficient renewable projects will all contribute to achieve the target.
Undoubtedly, significant growth prospects will attract operators from the energy space. Thus, along with TTE, other oil and gas companies like BP plc BP and ExxonMobil Corporation XOM are also focused on renewable energy and adopting measures to reduce emissions from operations.
BP has set an aggressive energy transition plan to capitalize on the mounting demand for clean energy. By 2030, it plans to reduce emissions from operations by 30-35%. BP has set an ambitious goal of developing 50 GW of net renewable energy generating capacity in a decade.
ExxonMobil has been working to reduce emissions by developing more efficient fuels. The company intends to make large investments in emission-reduction projects over the next few years. XOM has developed an ambitious roadmap to achieve net-zero Scope 1 and net-zero Scope 2 GHG emissions by 2030 for unconventionally operated assets. By 2050, it intends to achieve net-zero ambition by electrifying operations, using lower-carbon power and upgrading equipment.
Price Performance
In the past six months, shares of TotalEnergies have risen 11.9% compared with the industry’s 11.3% growth.
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Zacks Rank & Stock to Consider
TotalEnergies currently has a Zacks Rank #3 (Hold). A better-ranked stock in the same space is Valero Energy Corporation VLO, currently having a Zacks #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
VLO’s long-term (three-to-five years) earnings growth is currently pinned at 6%. The Zacks Consensus Estimate for 2024 earnings reflects an increase of 27.6% in the past 60 days.
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