We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TotalEnergies (TTE) Assists Kazakhstan in Energy Transition
Read MoreHide Full Article
TotalEnergies SE (TTE - Free Report) has signed a 25-year power purchase agreement (“PPA”) for the Mirny project. This confirms the company’s commitment to energy transition in Kazakhstan.
With an investment worth $1.4 billion, the project aims to construct a 1-gigawatt (GW) onshore wind farm, coupled with a 600-megawatt-hour battery energy storage system, for a steady supply of electricity.
Details of the Agreement
The Financial Settlement Center of Renewable Energy, a public entity owned by the Government of Kazakhstan, will purchase the entire clean power generated by the Mirny project for supplying the country's grid. Almost 1 million people will receive electricity through this initiative.
This project will be developed by TotalEnergies, in partnership with the National Wealth Fund Samruk-Kazyna and the National Company KazMunayGas. With more than 200 turbines, it be the largest wind energy project ever carried out in Kazakhstan.
Over the duration of the agreement, the project will help prevent the emission of almost 3.5 million tons of CO2 annually.
Renewable Energy
The recovery from the slump caused by the Covid-19 pandemic and the response to the global energy crisis have provided a significant boost to clean energy investment. By comparing International Energy Agency’s (“IEA”) 2023 estimates with the 2021 data, it could be concluded that annual clean energy investment has risen much faster than investment in fossil fuels over this period (24% vs 15%).
Per IEA report, approximately $2.8 trillion will be invested globally in energy in 2023. More than $1.7 trillion will be allocated to clean energy, including renewable power, nuclear, grids, storage, low-emission fuels, efficiency improvements, and end-use renewables and electrification. For every $1 spent on fossil fuels, $1.7 is now spent on clean energy. In 2023, low-emissions power is expected to account for almost 90% of total investment in electricity generation.
At the end of 2022, TotalEnergies' gross renewable electricity generation installed capacity was 17 GW. The company plans to increase its gross production capacity from renewable sources and storage to 35 GW by 2025, and to 100 GW by 2030.
Focus on Clean Energy
Along with TotalEnergies, other companies like Canadian Solar Inc. (CSIQ - Free Report) , Energy Transfer LP (ET - Free Report) and Equinor ASA (EQNR - Free Report) are also adopting measures to meet clean-energy targets.
In May 2023, Canadian Solar subsidiary, Recurrent Energy, inked an aggregated virtual PPA with five corporate organizations in the MISO region for the supply of solar energy through its Liberty Solar project. The project boasts an electricity generation capacity of 100 MW. Also, in 2022, CSIQ’s Global Energy business group clinched a PPA with Usinas Siderurgicas de Minas Gerais S.A, involving the building and development of a solar project in Brazil. This project has the capability to reduce approximately 118,500 tons of CO2 emissions.
The Zacks Consensus Estimate for CSIQ’s 2023 earnings per share (EPS) implies a year-over-year improvement of 67.4%. It delivered an average earnings surprise of 106.3% in the last four quarters.
In 2021, Energy Transfer announced that it signed a 15-year PPA with SB Energy for 120 MW of electricity from its Eiffel Solar project in northeast Texas. This solar project is expected to supply clean electricity to Energy Transfer starting January 2024.
The Zacks Consensus Estimate for ET’s 2023 earnings is pegged at $1.34 per unit. The company delivered an average earnings surprise of 5.84% in the last four quarters.
In 2022, Equinor and BP plc announced the finalization of the purchase and sale agreements with the New York State Energy Research and Development Authority for two of their U.S. offshore wind projects — Empire Wind 2 and Beacon Wind 1. Once operational, the Empire Wind 2 and Beacon Wind 1 are expected to generate 1.26 GW and 1.23 GW of renewable offshore wind power.
Equinor’s long-term (three- to five-year) earnings growth rate is 7.42%. It delivered an average earnings surprise of 11.41% in the last four quarters.
Price Performance
In the past three months, shares of TotalEnergies have lost 0.1% compared with the industry’s 2.9% decline.
Image: Bigstock
TotalEnergies (TTE) Assists Kazakhstan in Energy Transition
TotalEnergies SE (TTE - Free Report) has signed a 25-year power purchase agreement (“PPA”) for the Mirny project. This confirms the company’s commitment to energy transition in Kazakhstan.
With an investment worth $1.4 billion, the project aims to construct a 1-gigawatt (GW) onshore wind farm, coupled with a 600-megawatt-hour battery energy storage system, for a steady supply of electricity.
Details of the Agreement
The Financial Settlement Center of Renewable Energy, a public entity owned by the Government of Kazakhstan, will purchase the entire clean power generated by the Mirny project for supplying the country's grid. Almost 1 million people will receive electricity through this initiative.
This project will be developed by TotalEnergies, in partnership with the National Wealth Fund Samruk-Kazyna and the National Company KazMunayGas. With more than 200 turbines, it be the largest wind energy project ever carried out in Kazakhstan.
Over the duration of the agreement, the project will help prevent the emission of almost 3.5 million tons of CO2 annually.
Renewable Energy
The recovery from the slump caused by the Covid-19 pandemic and the response to the global energy crisis have provided a significant boost to clean energy investment. By comparing International Energy Agency’s (“IEA”) 2023 estimates with the 2021 data, it could be concluded that annual clean energy investment has risen much faster than investment in fossil fuels over this period (24% vs 15%).
Per IEA report, approximately $2.8 trillion will be invested globally in energy in 2023. More than $1.7 trillion will be allocated to clean energy, including renewable power, nuclear, grids, storage, low-emission fuels, efficiency improvements, and end-use renewables and electrification. For every $1 spent on fossil fuels, $1.7 is now spent on clean energy. In 2023, low-emissions power is expected to account for almost 90% of total investment in electricity generation.
At the end of 2022, TotalEnergies' gross renewable electricity generation installed capacity was 17 GW. The company plans to increase its gross production capacity from renewable sources and storage to 35 GW by 2025, and to 100 GW by 2030.
Focus on Clean Energy
Along with TotalEnergies, other companies like Canadian Solar Inc. (CSIQ - Free Report) , Energy Transfer LP (ET - Free Report) and Equinor ASA (EQNR - Free Report) are also adopting measures to meet clean-energy targets.
In May 2023, Canadian Solar subsidiary, Recurrent Energy, inked an aggregated virtual PPA with five corporate organizations in the MISO region for the supply of solar energy through its Liberty Solar project. The project boasts an electricity generation capacity of 100 MW. Also, in 2022, CSIQ’s Global Energy business group clinched a PPA with Usinas Siderurgicas de Minas Gerais S.A, involving the building and development of a solar project in Brazil. This project has the capability to reduce approximately 118,500 tons of CO2 emissions.
The Zacks Consensus Estimate for CSIQ’s 2023 earnings per share (EPS) implies a year-over-year improvement of 67.4%. It delivered an average earnings surprise of 106.3% in the last four quarters.
In 2021, Energy Transfer announced that it signed a 15-year PPA with SB Energy for 120 MW of electricity from its Eiffel Solar project in northeast Texas. This solar project is expected to supply clean electricity to Energy Transfer starting January 2024.
The Zacks Consensus Estimate for ET’s 2023 earnings is pegged at $1.34 per unit. The company delivered an average earnings surprise of 5.84% in the last four quarters.
In 2022, Equinor and BP plc announced the finalization of the purchase and sale agreements with the New York State Energy Research and Development Authority for two of their U.S. offshore wind projects — Empire Wind 2 and Beacon Wind 1. Once operational, the Empire Wind 2 and Beacon Wind 1 are expected to generate 1.26 GW and 1.23 GW of renewable offshore wind power.
Equinor’s long-term (three- to five-year) earnings growth rate is 7.42%. It delivered an average earnings surprise of 11.41% in the last four quarters.
Price Performance
In the past three months, shares of TotalEnergies have lost 0.1% compared with the industry’s 2.9% decline.
Image Source: Zacks Investment Research
Zacks Rank
TotalEnergies currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.