TotalEnergies' (TTE) Seagreen Wind Farm Starts Production

TotalEnergies TTE and its partner SSE Renewables announced that they have started to produce clean energy from the Seagreen offshore wind farm, 16.8 miles (27km) off the coast of Angus in Scotland. The first turbine of the project is now operational. It is expected that the balance 113 turbines will be operational by the first half of 2023. The offshore wind farm is expected to generate 1,075 megawatts (MW) of power in a day.

Once the Seagreen offshore wind farm becomes fully operational, the site will produce around 5 terawatt hours (TWh) of renewable electricity per year, enough to power the equivalent of 1.6 million households.

TotalEnergies’ Clean Energy Vision

TotalEnergies targets to achieve zero emissions by 2050 and is taking the necessary measures to attain the same. TTE is making systematic investments in operations to achieve clean energy transition goals. This new joint venture is in sync with the company’s long-term goal to produce a substantial volume of electricity from renewable sources.

TotalEnergies is gradually building a portfolio of low-carbon businesses that could account for 15-20% of sales by 2040. In the near term, the company plans to have more than 16 gigawatts (GW) of renewable gross capacity in operation by the end of 2022.

TotalEnergies will continue to expand the business under discussion to reach 35 GW of gross production capacity from renewable sources and storage by 2025 and then 100 GW by 2030.

Bright Prospect for Renewable Energy Industry

Renewable Energy is gaining popularity and acceptance across the globe due to increasing concern about the ill effects of emissions. Governmental support, and steady investment in research and development have resulted in the development of the latest technologies and assets, which are enabling to set up cost-effective utility-scale renewable projects.

The demand for energy is rising across the globe and renewable energy is a major contributor to meeting up the increasing demand. Oil majors, sensing the opportunity in the renewable space, are investing to become part of the energy transition.

Oil and gas companies like Shell plc. SHEL, Eni SpA E and BP Plc BP are making steady investments to create a renewable energy generation portfolio.

Powering Progress is Shell’s strategy to accelerate the transition of its business to net-zero emissions by 2050. The company is acquiring and investing in various renewable projects to achieve its net-zero target. The Zacks Consensus Estimate for SHEL’s 2022 earnings has moved up 12.7% in the past 60 days.

Eni has an ambitious plan of reaching 60 GW of installed renewable energy capacity by 2050. This suggests a massive improvement from 1 GW of installed and sanctioned capacity in the last year. The Zacks Consensus Estimate for Eni’s 2022 earnings has moved up 21.9% in the past 60 days.

BP has set an aggressive energy transition plan to capitalize on the mounting clean energy demand. In a decade, BP has set an ambitious goal of developing 50 GW of net renewable energy generating capacity, representing a massive improvement from the 2.5 GW capacity that the company has developed so far. The Zacks Consensus Estimate for BP’s 2022 earnings has moved up 22.2% in the past 60 days.

Price Performance

In the past month, shares of TotalEnergies have gained 7.8% compared with the Zacks Oil & Gas Refining & Marketing industry’s 8.5% rally.

Image Source: Zacks Investment Research

Zacks Rank

TotalEnergies currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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