TOTAL SE (TOT - Free Report) announced that it has entered into a 50/50 partnership agreement with Macquarie’s Green Investment Group (GIG) to build a 2-gigawatt (GW) floating offshore wind project in South Korea. This offshore wind project will aid South Korea to meet the goal of developing renewable energies, which shall reach at least 20% of the power mix by 2030, including 12 GW of offshore wind capacities.
TOTAL has expertise and knowledge in developing offshore wind projects, which will be useful for the development of this mega wind project offshore South Korea. The companies aim to launch the construction of the first project of around 500 megawatts by 2023-end.
Equinor ASA (EQNR - Free Report) , a Norway-based energy company, has already started ground work to find out the possibility of developing and constructing an 800-MW floating offshore wind project in South Korea.
TOTAL’s Focus on Clean Energy
TOTAL is gradually building the clean electricity generation portfolio. It has also made strategic acquisitions, tie-ups and entered into JVs to expand the renewable portfolio. The company now plans to scale up the renewable generation capacity to 25 GW by 2025. TOTAL also targets to generate 40% of revenues in 2050 from low-carbon electricity sales.
It also strives to be a net-zero carbon emission company by 2050 and has been taking steps to achieve the target. The company has maintained planned investment in the range of $1.5-$2 billion annually in low-carbon electricity generation. To further expand operations in the solar business, TOTAL’s unit SunPower Corporation recently completed the TOT - Free Report) %20joins%20forces%20with%20Macquarie%20to%20develop%20a%202GW%20offshore%20wind%20project%20in%20South%20Korea.%20It%20is%20also%20working%20on%20the%20target%20of%20generating%2040%%20revenues%20in%202050%20from%20low-carbon%20electricity%20sales.">spin-off of Maxeon Solar Technologies into a separate entity.
Future of Global Offshore Wind
Per a report from Global Wind Energy Council (“GWEC”), 2019 was the best year for global offshore wind project addition, with a total of 6.1 GW new capacity being added in different regions across the globe. Per GWEC, the rising ambition of various governments to increase the offshore wind portfolio is expected to lead to an annual growth rate of 18.6% until 2024 and 8.2% up to the end of the decade. As a consequence, new annual installations are expected to sail past the milestones of 20 GW in 2025 and 30 GW in 2030.
GWEC expects that more than 205 GW of new offshore wind capacity will be added in the next decade. Per the council, 23 GW of offshore wind is predicted to be built in North America region this decade. The transition toward clean energy production is quite visible among the U.S. utility operators. Utilities like Dominion Energy (D - Free Report) and AVANGRID Inc. (AGR - Free Report) , among others, have taken initiatives to develop offshore wind projects in the United States.
In the past three months, TOTAL’s shares have outperformed the industry.
TOTAL currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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