TotalEnergies SE TTE and SSE have signed an agreement to create a brand, Source, which will be focused on developing EV charging infrastructure in the U.K. and Ireland. Source will deploy in both countries up to 3000 high power charge points, meeting demand from EV and fleet owners.
In the next five years, Source will deploy high power charge points (of 150 kW and more) grouped in 300 “EV hubs,” targeting a 20% market share. Charging hubs will be in prime locations in and around urban areas and powered by renewable energy provided by SSE and TotalEnergies.
Need for EV Charging Units Rising
Electric Vehicle usage is rising across the globe. European countries like the U.K. and Ireland will also need fast EV chargers to meet the demand from EV drivers and fleet operators. TotalEnergies, along with its partner SSE, will contribute to the development of electric mobility to decarbonize transportation in the U.K. and Ireland.
Per BloombergNEF’s annual Long-Term Electric Vehicle Outlook report, 100 million electric passenger vehicles will be on the road by 2026, up from 27 million EVs at the end of 2022. The report also said that there should be as many as 700 million EVs on the road globally by 2040.
This massive surge in EV usage globally will also require the development of EV charging infrastructure worldwide. TotalEnergies is among the frontrunners in providing EV charging solutions.
Presence in EV Charging
TotalEnergies is present throughout the value chain of electric charging. The company has ample renewable power generation capacity and also operates electric vehicle charging units.
TTE continuously invests in charging infrastructure to promote the deployment of electric mobility on a large scale. TotalEnergies currently operates more than 64,000 electric vehicle charge points across the world.
In the U.K., TotalEnergies operates the Source London network comprising 2,600 charge points in the capital. This joint venture is in sync with the company’s ambition to deploy and operate more than 1,000 high-power charging sites for electric vehicles in Europe by 2028.
TotalEnergies also supports its professional customers in their transition to electric mobility by offering them services for the deployment and supervision of charging stations.
Oil and Gas Companies are Investing in EV Charging
Oil and Gas companies are investing in EV charging projects to benefit from rising demand for EV charging units. Shell Plc. SHEL is providing customers with the most convenient EV experience by enabling them to charge where, when and how they want. Shell currently has around 55,000 public charge points globally for electric vehicles. By 2025, we expect it to have around 70,000 public EV charge points and around 200,000 by 2030 globally.
Another oil and gas company, BP Plc BP, currently has more than 29,000 EV charging units worldwide. The company, to reduce emissions and support the roll-out of more EVs on the road, has plans to deploy more than 100,000 charging points globally by 2030.
Price Performance
In the past six months, shares of TotalEnergies have gained 11.4% compared with the industry’s 8.3% growth.
Image Source: Zacks Investment Research
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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