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TotalEnergies (TTE) Signs Deal to Decarbonize Normandy Platform
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TotalEnergies SE (TTE - Free Report) and Air Liquide (AIQUY - Free Report) signed an agreement for the long-term supply of green and low-carbon hydrogen to the TotalEnergies refining and petrochemical platform in Normandy.
The collaboration is in sync with the companies’ common goal of assisting in the decarbonization of industrial activities along the Axe Seine corridor.
Details of the Agreement
Per the agreement, Air Liquide will supply up to 10,000 tons per year of green hydrogen to the TotalEnergies platform in Normandy. Air Liquide will also deliver up to 5,000 tons per year of low-carbon hydrogen, beginning in the second half of 2026.
The Normand'hy electrolyzer, which will be constructed and operated by Air Liquide, is expected to have a 200-megawatt (MW) electrical capacity and produce green and low carbon hydrogen. Half of this production capacity, corresponding to the quantity of hydrogen supplied to its refinery, will be available to TotalEnergies.
The Air Liquide electrolyzer will receive around 700-gigawatt hour per year from TotalEnergies for half of its capacity, or 100 MW, which corresponds to the proportion of hydrogen sent to the TTE refinery in Normandy.
Focus on Green Hydrogen
The initiative will help the Gonfreville facility in its decarbonization efforts by reducing carbon emissions by up to 150,000 tons per year.
Rising demand for cleaner energy from all major industries and escalating environmental issues due to carbon emissions are the key growth drivers for Europe's Green Hydrogen market. According to a ChemAnalyst report, the Europe Green Hydrogen market has reached approximately 3 thousand tons in 2022 and is expected to witness a CAGR of 132% during 2015-2032.
As Europe moves toward decarbonization, green hydrogen holds a substantial position in its fuel market, which aims to produce 10 million metric tons of renewable hydrogen and import 10 million tons by 2030, per a report from the European Commission.
TotalEnergies' attempt at decarbonizing all hydrogen used in its European refineries within 2030 is perfectly in sync with this objective. The company aims to replace grey hydrogen with low-carbon hydrogen by 2030, indicating a reduction of 3 million tons of CO2 per year.
In June 2023, TTE signed an agreement with VNG, a Germany-based natural gas distribution company, to initiate the supply of green hydrogen to the Leuna refinery. This agreement aims to reduce the refinery's yearly CO2 emissions by up to 80,000 tons within 2030 and help the facility become carbon neutral.
Along with TTE, some other oil and gas companies like BP plc (BP - Free Report) and Shell plc (SHEL - Free Report) are adopting green hydrogen projects to reduce emissions and meet clean-energy targets.
In March 2023, BP inaugurated the green hydrogen cluster of the Valencia area at its refinery in Castellon. The project aims at producing green hydrogen by 2030 using a staged electrolysis capacity expansion of up to 2 gigawatts. Green hydrogen will replace the refinery’s current use of grey hydrogen (generated from natural gas), thereby supporting its sustainable operations.
BP’s long-term (three- to five-year) earnings growth rate is 6.51%. It delivered an average earnings surprise of 7.7% in the last four quarters.
In 2022, Shell chose the Japanese electrical engineering and software company Yokogawa Electric to work as the main automation contractor for building one of Europe’s largest renewable hydrogen plant, Holland Hydrogen I, in the Dutch port of Rotterdam. The unit will have a 200 MW electrolyzer, with an output of up to 60,000 kilograms of green hydrogen per day.
Shell’s long-term earnings growth rate is 9.33%. It delivered an average earnings surprise of 10.7% in the last four quarters.
Price Performance
In the past year, shares of TotalEnergies have risen 32.3% compared with the industry’s 24.1% growth.
Image Source: Zacks Investment Research
Zacks Rank
TotalEnergies currently carries a Zacks Rank #4 (Sell).
Image: Bigstock
TotalEnergies (TTE) Signs Deal to Decarbonize Normandy Platform
TotalEnergies SE (TTE - Free Report) and Air Liquide (AIQUY - Free Report) signed an agreement for the long-term supply of green and low-carbon hydrogen to the TotalEnergies refining and petrochemical platform in Normandy.
The collaboration is in sync with the companies’ common goal of assisting in the decarbonization of industrial activities along the Axe Seine corridor.
Details of the Agreement
Per the agreement, Air Liquide will supply up to 10,000 tons per year of green hydrogen to the TotalEnergies platform in Normandy. Air Liquide will also deliver up to 5,000 tons per year of low-carbon hydrogen, beginning in the second half of 2026.
The Normand'hy electrolyzer, which will be constructed and operated by Air Liquide, is expected to have a 200-megawatt (MW) electrical capacity and produce green and low carbon hydrogen. Half of this production capacity, corresponding to the quantity of hydrogen supplied to its refinery, will be available to TotalEnergies.
The Air Liquide electrolyzer will receive around 700-gigawatt hour per year from TotalEnergies for half of its capacity, or 100 MW, which corresponds to the proportion of hydrogen sent to the TTE refinery in Normandy.
Focus on Green Hydrogen
The initiative will help the Gonfreville facility in its decarbonization efforts by reducing carbon emissions by up to 150,000 tons per year.
Rising demand for cleaner energy from all major industries and escalating environmental issues due to carbon emissions are the key growth drivers for Europe's Green Hydrogen market. According to a ChemAnalyst report, the Europe Green Hydrogen market has reached approximately 3 thousand tons in 2022 and is expected to witness a CAGR of 132% during 2015-2032.
As Europe moves toward decarbonization, green hydrogen holds a substantial position in its fuel market, which aims to produce 10 million metric tons of renewable hydrogen and import 10 million tons by 2030, per a report from the European Commission.
TotalEnergies' attempt at decarbonizing all hydrogen used in its European refineries within 2030 is perfectly in sync with this objective. The company aims to replace grey hydrogen with low-carbon hydrogen by 2030, indicating a reduction of 3 million tons of CO2 per year.
In June 2023, TTE signed an agreement with VNG, a Germany-based natural gas distribution company, to initiate the supply of green hydrogen to the Leuna refinery. This agreement aims to reduce the refinery's yearly CO2 emissions by up to 80,000 tons within 2030 and help the facility become carbon neutral.
Along with TTE, some other oil and gas companies like BP plc (BP - Free Report) and Shell plc (SHEL - Free Report) are adopting green hydrogen projects to reduce emissions and meet clean-energy targets.
In March 2023, BP inaugurated the green hydrogen cluster of the Valencia area at its refinery in Castellon. The project aims at producing green hydrogen by 2030 using a staged electrolysis capacity expansion of up to 2 gigawatts. Green hydrogen will replace the refinery’s current use of grey hydrogen (generated from natural gas), thereby supporting its sustainable operations.
BP’s long-term (three- to five-year) earnings growth rate is 6.51%. It delivered an average earnings surprise of 7.7% in the last four quarters.
In 2022, Shell chose the Japanese electrical engineering and software company Yokogawa Electric to work as the main automation contractor for building one of Europe’s largest renewable hydrogen plant, Holland Hydrogen I, in the Dutch port of Rotterdam. The unit will have a 200 MW electrolyzer, with an output of up to 60,000 kilograms of green hydrogen per day.
Shell’s long-term earnings growth rate is 9.33%. It delivered an average earnings surprise of 10.7% in the last four quarters.
Price Performance
In the past year, shares of TotalEnergies have risen 32.3% compared with the industry’s 24.1% growth.
Image Source: Zacks Investment Research
Zacks Rank
TotalEnergies currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.