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) Inks a Joint Deal to Develop 1,500-MW MNK
Read MoreHide Full Article
TotalEnergies SE (TTE - Free Report) , along with partners EDF and Sumitomo Corporation (SSUMY - Free Report) , announced that they have been selected as strategic partners by the government of Mozambique. The companies entered into a joint agreement for the development of the Mphanda Nkuwa hydropower project (MNK).
MNK is a 1,500 megawatt (MW) run-of-river hydropower plant, situated on the Zambezi River, around 37 miles (60 Kms) downstream from Cahora Bassa and 37 miles (60 Kms) from Tete City.
The consortium will make use of TotalEnergies' vast experience in developing large-scale integrated energy projects globally, particularly in Africa, EDF's extensive hydropower experience and reputable technical expertise, and Sumitomo's global experience in financing strategic IPP projects, including Sub-Saharan Africa, for the development of the MNK project.
The consortium signed a cooperative development agreement with the Hidroeléctrica de Cahora Bassa (HCB), Electricidade de Moçambique (EDM) and Gabinete de Implementação do Projecto Hidroeléctrico de Mphanda Nkuwa (GMNK). It will hold 70% of the project, while EDM and HCB will own the remaining 30%.
More than 50% of Mozambique's available power generation capacity would be generated by the MNK project, which could provide clean electricity to more than 3 million households in and around Mozambique and South Africa. The MNK project would play an important role in the region's energy transition by providing reliable renewable electricity.
TTE’s Focus on Renewable Energy
Multi-energy focused TotalEnergies extends its reach beyond the scope of the Mozambique Liquefied Natural Gas project by making a significant investment in renewable energy for the benefit of the people of Mozambique. This is a new phase in TotalEnergies' multi-faceted strategy to support oil and gas countries in their energy transition.
TotalEnergies strives to be a net-zero carbon emission company by 2050 and has taken the necessary steps to achieve the target. TotalEnergies aims to achieve cost-competitive portfolio combining renewables and flexible assets to deliver clean firm power to its customers. At the end of 2023, TotalEnergies’ gross renewable electricity generation installed capacity was 22 gigawatt (GW). TotalEnergies will continue to expand this business to reach 35 GW in 2025 and more than 100 TWh of net electricity production by 2030.
Growth Prospects
According to Precedence Research report, the global renewable energy market size was estimated at $970 billion in 2022 and is expected to hit over $2182.99 billion by 2032 with a registered CAGR of 8.5% from 2023 to 2032.
The hydroelectric power was the leading segment in the global renewable energy market in 2022. The increasing government initiatives to promote the generation and adoption of the hydropower are fueling the growth of the hydroelectric power segment in the global renewable energy market. According to the same report mentioned above, the global hydroelectric power segment is growing at a CAGR of 6.6% from 2023 to 2032.
Along with TTE, other oil and gas companies like BP plc (BP - Free Report) and ExxonMobil Corporation (XOM - Free Report) are also focused on renewable energy and adopting measures to reduce emissions from operations.
BP has set an aggressive energy transition plan to capitalize on the mounting clean energy demand. By 2030, it plans to reduce emissions from operations by 30-35%. In a decade, BP has set an ambitious goal of developing 50 GW of net renewable energy generating capacity.
BP’s long-term (three- to five-year) earnings growth rate is 6.51%. The Zacks Consensus Estimate for 2023 earnings is pegged at $5.05 per share.
ExxonMobil has been working to reduce emissions by developing more efficient fuels. The company intends to make large investments in emission-reduction projects over the next few years. XOM has developed an ambitious roadmap to achieve net-zero Scope 1 and net-zero Scope 2 GHG emissions by 2030 for unconventionally operated assets.
XOM’s long-term earnings growth rate is 3%. It delivered an average earnings surprise of 0.6% in the last four quarters.
Price Performance
In the past six months, shares of TotalEnergies have risen 14.2% compared with the industry’s 10.5% growth.
Image: Bigstock
TotalEnergies (TTE) Inks a Joint Deal to Develop 1,500-MW MNK
TotalEnergies SE (TTE - Free Report) , along with partners EDF and Sumitomo Corporation (SSUMY - Free Report) , announced that they have been selected as strategic partners by the government of Mozambique. The companies entered into a joint agreement for the development of the Mphanda Nkuwa hydropower project (MNK).
MNK is a 1,500 megawatt (MW) run-of-river hydropower plant, situated on the Zambezi River, around 37 miles (60 Kms) downstream from Cahora Bassa and 37 miles (60 Kms) from Tete City.
The consortium will make use of TotalEnergies' vast experience in developing large-scale integrated energy projects globally, particularly in Africa, EDF's extensive hydropower experience and reputable technical expertise, and Sumitomo's global experience in financing strategic IPP projects, including Sub-Saharan Africa, for the development of the MNK project.
The consortium signed a cooperative development agreement with the Hidroeléctrica de Cahora Bassa (HCB), Electricidade de Moçambique (EDM) and Gabinete de Implementação do Projecto Hidroeléctrico de Mphanda Nkuwa (GMNK). It will hold 70% of the project, while EDM and HCB will own the remaining 30%.
More than 50% of Mozambique's available power generation capacity would be generated by the MNK project, which could provide clean electricity to more than 3 million households in and around Mozambique and South Africa. The MNK project would play an important role in the region's energy transition by providing reliable renewable electricity.
TTE’s Focus on Renewable Energy
Multi-energy focused TotalEnergies extends its reach beyond the scope of the Mozambique Liquefied Natural Gas project by making a significant investment in renewable energy for the benefit of the people of Mozambique. This is a new phase in TotalEnergies' multi-faceted strategy to support oil and gas countries in their energy transition.
TotalEnergies strives to be a net-zero carbon emission company by 2050 and has taken the necessary steps to achieve the target. TotalEnergies aims to achieve cost-competitive portfolio combining renewables and flexible assets to deliver clean firm power to its customers. At the end of 2023, TotalEnergies’ gross renewable electricity generation installed capacity was 22 gigawatt (GW). TotalEnergies will continue to expand this business to reach 35 GW in 2025 and more than 100 TWh of net electricity production by 2030.
Growth Prospects
According to Precedence Research report, the global renewable energy market size was estimated at $970 billion in 2022 and is expected to hit over $2182.99 billion by 2032 with a registered CAGR of 8.5% from 2023 to 2032.
The hydroelectric power was the leading segment in the global renewable energy market in 2022. The increasing government initiatives to promote the generation and adoption of the hydropower are fueling the growth of the hydroelectric power segment in the global renewable energy market. According to the same report mentioned above, the global hydroelectric power segment is growing at a CAGR of 6.6% from 2023 to 2032.
Along with TTE, other oil and gas companies like BP plc (BP - Free Report) and ExxonMobil Corporation (XOM - Free Report) are also focused on renewable energy and adopting measures to reduce emissions from operations.
BP has set an aggressive energy transition plan to capitalize on the mounting clean energy demand. By 2030, it plans to reduce emissions from operations by 30-35%. In a decade, BP has set an ambitious goal of developing 50 GW of net renewable energy generating capacity.
BP’s long-term (three- to five-year) earnings growth rate is 6.51%. The Zacks Consensus Estimate for 2023 earnings is pegged at $5.05 per share.
ExxonMobil has been working to reduce emissions by developing more efficient fuels. The company intends to make large investments in emission-reduction projects over the next few years. XOM has developed an ambitious roadmap to achieve net-zero Scope 1 and net-zero Scope 2 GHG emissions by 2030 for unconventionally operated assets.
XOM’s long-term earnings growth rate is 3%. It delivered an average earnings surprise of 0.6% in the last four quarters.
Price Performance
In the past six months, shares of TotalEnergies have risen 14.2% compared with the industry’s 10.5% growth.
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.