TOTAL SE
TOT
announced that it has further expanded renewable operations through the acquisition of a 20% stake in the Eolmed floating wind farm pilot project, located in the Mediterranean, off the coast of Gruissan and near Port-La-Nouvelle (Occitan region).
TOTAL is focused on expanding renewable operations globally and aims to produce 35 gigawatts (GW) of energy from renewable sources by 2025 from the present level of 7 GW.
Floating Wind Projects
Per a report from Global Wind Energy Council, 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.
TOTAL is gradually expanding presence in offshore wind operation. It has already entered into a 50/50 partnership agreement with Macquarie’s Green Investment Group (GIG) to build a 2 GW floating offshore wind project in South Korea. It is also involved in the 100 MW Erebus project in the United Kingdom. Plus, this new deal with further expand its offshore wind operations. In addition, we can notice utilities like Dominion Energy
D
and AVANGRID Inc.
AGR
, among others, have taken initiatives to develop offshore wind projects in the United States.
Long-Term Renewable Goal
TOTAL reaffirms the net-zero emission target for 2050 and has plans to reduce Scope 3 emissions by European customers by 30%, in absolute value, within 2030. The company has maintained planned investment in the range of $1.5-$2 billion annually in low-carbon electricity generation to achieve long-term goal.
By 2050-end, TOTAL expects 40% sales to be generated from the renewable power generation business. The company predicts renewables and electricity to deliver a cash flow of more than $1.5 billion per year by 2025.
TOTAL is gradually building the clean electricity generation portfolio through organic means, acquisitions, partnerships and joint ventures. The acquisition of SunPower Corporation
SPWR
has been enabling the company to expand solar operations since 2011.
Price Performance
In the past three months, TOTAL’s shares have outperformed the
industry
.
Zacks Rank
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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