TotalEnergies SE TTE, along with its partner OQ Alternative Energy (“OQAE”), the National Renewable Energy Champion, announces the signing of landmark agreements to develop 300 megawatts (MW) of renewable energy projects in Oman.
The electricity will be delivered through long-term power purchase agreements (PPA) to Petroleum Development Oman, the leading exploration and production company in the Sultanate.
TotalEnergies and OQAE will take the lead in completing three renewable projects, with 49% and 51% of the total shares, respectively. North Solar, a 100 MW solar project in northern Oman's Saih Nihaydah, is the first project. Two 100 MW wind farms, Riyah-1 and Riyah-2, are situated in southern Oman's Amin and West Nimr fields.
Construction will start in early 2025, and electricity production will begin in late 2026. These solar and wind projects will generate over 1.4 TWh of renewable electricity annually.
TotalEnergies also contributes to the development of renewables in the country, such as the largest solar photovoltaic system built to provide power for a desalination plant in Oman, in the city of Sur, in joint-venture with Veolia.
TotalEnergies Prioritizes Clean Energy
To reach net zero by 2050, TotalEnergies is developing a world-class, cost-competitive portfolio that combines flexible assets like combined-cycle gas turbines and storage with renewable energy sources like solar, onshore and offshore wind. The idea is to provide clean, reliable electricity to its customers.
By the end of 2024, TotalEnergies’ gross renewable electricity generation installed capacity had reached over 24 gigawatts (GW). With further growth, the company plans to produce 35 GW of power in 2025 and more than 100 TWh of net electricity by 2030.
In December 2024, TotalEnergies’ Saudi developer, Aljomaih Energy and Water Company, signed a 25-year PPA with the Saudi Power Procurement Company related to the 300 MW solar power project, Rabigh 2.
Other Companies’ Focus on Renewable Energy
Along with TTE, other companies like BP plc BP, ExxonMobil Corporation XOM and Equinor ASA EQNR are also set to lower emissions and increase renewable energy operations.
BP has set an aggressive energy transition plan to capitalize on the mounting demand for clean energy. By 2030, it plans to reduce emissions from operations by 30-35%. It has set an ambitious goal of developing 50 GW of net renewable energy generating capacity by 2030.
BP’s long-term (three to five years) earnings growth rate is 4%. The Zacks Consensus Estimate for 2024 sales indicates a year-over-year decrease of 4.2%.
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. By 2050, it plans to achieve a net-zero ambition by electrifying operations, using lower-carbon power and upgrading equipment.
XOM’s long-term earnings growth rate is 3%. The Zacks Consensus Estimate for 2024 sales indicates a year-over-year increase of 2.9%.
EQNR is investing actively in renewable energy projects, including power generation from solar and wind energy. Equinor aims to attain profitable growth within renewables and expects a production capacity of 4-6 GW by 2026 and 12-16 GW by 2035.
EQNR’s long-term earnings growth rate is 5.79%. The Zacks Consensus Estimate for 2024 earnings per share indicates a year-over-year decrease of 2.3%.
TTE’s Stock Price Performance
In the past six months, shares of TotalEnergies have lost 17.9% compared with the industry’s 14.2% decline.
Image Source: Zacks Investment Research
TTE’s Zacks Rank
The company 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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