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TotalEnergies (TTE), Veolia to Develop Microalgae for Biofuels

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TotalEnergies (TTE - Free Report) announced that it has partnered with Veolia Environnement S.A. for the development of microalgae at the La Mède biorefinery, with the long-term objective of producing biofuel.

Microalgae utilize sunlight and CO2 from the atmosphere or from industrial processes to grow. When mature, they can be transformed into next-generation biofuels with low-carbon intensity. As part of the project, a test platform will be set up to compare different innovative systems for growing microalgae and identify the most efficient ones to grow microalgae.

Project In Sync With Long-Term Goal

TotalEnergies strives to be a net-zero carbon emission company by 2050 and has taken the necessary steps to achieve the target. This decision to develop microalgae and finally produce biofuel is completely in sync with TotalEnergies’ emission reduction goal.

Biofuel produced by TotalEnergies will be utilized by customers and assist them to reduce their carbon footprint, thereby contributing to TotalEnergies’ ambition of achieving carbon neutrality by 2050.

Ways to Reduce Emission

TotalEnergies is gradually building the clean electricity generation portfolio. The acquisition of SunPower Corporation (SPWR - Free Report) has been enabling the company to expand solar operations since 2011. It now plans to scale up renewable generation capacity to 25 GW by 2025. TOTAL also targets to generate 40% of revenues in 2050 from low-carbon electricity sales.

Globally, TotalEnergies is among the largest producers of LNG and has significant presence in the entire value chain of LNG. The company expects LNG usage to increase globally and help in emission reduction.

TotalEnergies is supporting the increasing usage of electric vehicles (EVs) in European countries by setting up the much required EV charging infrastructure. TotalEnergies has plans to install more than 150,000 electric vehicle charge points by 2025 in Europe. These charging points will assist the company in smooth transition toward higher usage of EVs and lower mobility-related emission.

Clean Energy in Focus

Globally, we have seen an increasing usage of clean renewable energy and urge among energy majors to cut emission levels. Investment in the renewable space involves a lot of growth potential. Given the possibility of increasing the usage of renewable energy, oil and gas companies like Chevron Corporation (CVX - Free Report) and Royal Dutch Shell Plc (RDS.A - Free Report) , among others, are also investing heavily in the renewable energy space.

Price Performance

In the past six months, TotalEnergies’ shares have underperformed the industry.

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Zacks Rank

TotalEnergies 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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