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TotalEnergies SE (TTE - Free Report) announced that its joint venture with Macquarie’s Green Investment Group (GIG) and RIDG has secured rights in the N1 area to develop a 2-gigawatt (GW) offshore windfarm project in the ScotWind leasing round. The West of Orkney Windfarm will be located nearly 18.7 miles (30km) off the west coast of Orkney in Scotland.
The West of Orkney Windfarm is expected to start commercial production from 2030 and the total investment in the project is likely to be $5.45 billion (GBP £4 billion).
TotalEnergies’ Clean Energy Vision
TotalEnergies targets to achieve zero emissions by 2050 and is taking the necessary measures to attain the same. TTE is making systematic investments in operations to achieve clean energy transition goals. TotalEnergies maintained planned investment in the range of $1.5-$2 billion in low-carbon electricity generation. This new JV is in sync with TotalEnergies’ long-term goal to produce a substantial volume of electricity from renewable sources.
At the end of September 2021, TotalEnergies' gross renewable electricity generation capacity was 10 GW. TotalEnergies will continue to expand this business to reach 35 GW of gross production capacity from renewable sources by 2025 and 100 GW by 2030. TotalEnergies is gradually building a portfolio of low-carbon businesses that could account for 15-20% of sales by 2040.
Future of Renewable Energy
Per International Energy Agency (“IEA”) report, by 2026, global renewable electricity capacity is forecast to rise more than 60% from 2020 levels to more than 4,800 GW. The IEA report predicts that renewables are set to account for 95% of the increase in global electricity capacity through 2026. Per IEA, offshore wind will continue to prosper and global offshore wind capacity is forecast to more than triple by 2026. IEA predicts that global capacity additions of offshore wind are set to reach 21 GW by 2026, courtesy of rapid expansion in new markets beyond Europe and China.
Since there is a large possibility of expansion in the global renewable space, energy majors like BP Plc. (BP - Free Report) and Royal Dutch Shell plc , among others, are investing in the renewable energy space.
BP has adopted an aggressive energy transition strategy to capitalize on the increasing clean energy demand. In a decade, BP has set a goal of developing 50 GW of net renewable energy generating capacity, representing a massive improvement from the current capacity of 2.5 GW. BP intends to boost low-carbon spending to $5 billion per annum by 2030. The Zacks Consensus Estimate for BP’s 2022 earnings has moved up 16.9% to $4.42 per share in the past 90 days.
Shell has been on a renewable acquisition spree of late, having collaborated with IONITY, New Motion, First Utility and Silicon Ranch, as the company attempts to diversify its portfolio beyond oil and gas. Shell's transactions with battery storage supplier sonnen and solar developer Cleantech further emphasize its increasing shift toward clean energy production. The Zacks Consensus Estimate for RDS.A’s 2022 earnings has moved up 1.8% to $6.64 per share in the past 90 days.
Price Performance
In the past 12 months, TotalEnergies’ shares have outperformed the industry.
NextEra Energy Partners’ long-term (three to five) earnings growth is currently pegged at 18.5%. NEP delivered an average earnings surprise of 99.6% in the last four reported quarters. The Zacks Consensus Estimate for NEP’s 2022 earnings has moved up 16.7% to $3.21 in the past 90 days.
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TotalEnergies' (TTE) JV With GIG & RIDG Inks 2GW Windfarm Deal
TotalEnergies SE (TTE - Free Report) announced that its joint venture with Macquarie’s Green Investment Group (GIG) and RIDG has secured rights in the N1 area to develop a 2-gigawatt (GW) offshore windfarm project in the ScotWind leasing round. The West of Orkney Windfarm will be located nearly 18.7 miles (30km) off the west coast of Orkney in Scotland.
The West of Orkney Windfarm is expected to start commercial production from 2030 and the total investment in the project is likely to be $5.45 billion (GBP £4 billion).
TotalEnergies’ Clean Energy Vision
TotalEnergies targets to achieve zero emissions by 2050 and is taking the necessary measures to attain the same. TTE is making systematic investments in operations to achieve clean energy transition goals. TotalEnergies maintained planned investment in the range of $1.5-$2 billion in low-carbon electricity generation. This new JV is in sync with TotalEnergies’ long-term goal to produce a substantial volume of electricity from renewable sources.
At the end of September 2021, TotalEnergies' gross renewable electricity generation capacity was 10 GW. TotalEnergies will continue to expand this business to reach 35 GW of gross production capacity from renewable sources by 2025 and 100 GW by 2030. TotalEnergies is gradually building a portfolio of low-carbon businesses that could account for 15-20% of sales by 2040.
Future of Renewable Energy
Per International Energy Agency (“IEA”) report, by 2026, global renewable electricity capacity is forecast to rise more than 60% from 2020 levels to more than 4,800 GW. The IEA report predicts that renewables are set to account for 95% of the increase in global electricity capacity through 2026. Per IEA, offshore wind will continue to prosper and global offshore wind capacity is forecast to more than triple by 2026. IEA predicts that global capacity additions of offshore wind are set to reach 21 GW by 2026, courtesy of rapid expansion in new markets beyond Europe and China.
Since there is a large possibility of expansion in the global renewable space, energy majors like BP Plc. (BP - Free Report) and Royal Dutch Shell plc , among others, are investing in the renewable energy space.
BP has adopted an aggressive energy transition strategy to capitalize on the increasing clean energy demand. In a decade, BP has set a goal of developing 50 GW of net renewable energy generating capacity, representing a massive improvement from the current capacity of 2.5 GW. BP intends to boost low-carbon spending to $5 billion per annum by 2030. The Zacks Consensus Estimate for BP’s 2022 earnings has moved up 16.9% to $4.42 per share in the past 90 days.
Shell has been on a renewable acquisition spree of late, having collaborated with IONITY, New Motion, First Utility and Silicon Ranch, as the company attempts to diversify its portfolio beyond oil and gas. Shell's transactions with battery storage supplier sonnen and solar developer Cleantech further emphasize its increasing shift toward clean energy production. The Zacks Consensus Estimate for RDS.A’s 2022 earnings has moved up 1.8% to $6.64 per share in the past 90 days.
Price Performance
In the past 12 months, TotalEnergies’ shares have outperformed the industry.
Zacks Rank & Another Key Pick
TotalEnergies currently sports a Zacks Rank #1 (Strong Buy). Another top-ranked stock in the same space is NextEra Energy Partners (NEP - Free Report) , which shares the same rank as TotalEnergies. You can see the complete list of today’s Zacks #1 Rank stocks here.
NextEra Energy Partners’ long-term (three to five) earnings growth is currently pegged at 18.5%. NEP delivered an average earnings surprise of 99.6% in the last four reported quarters. The Zacks Consensus Estimate for NEP’s 2022 earnings has moved up 16.7% to $3.21 in the past 90 days.