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TotalEnergies (TTE) to Add 4,400 EV Charging Points in Belgium

TotalEnergies SE TTE announced that it received a contract to install and commercially operate 4,400 electric vehicle (EV) charging points in West Flanders and Flemish Brabant, Belgium, over the next two years.

TTE will also have the right to operate the new 22 kVA EV charging points for the next 12 years. The charging points will be supplied with 100% renewable electricity generated by offshore wind power in the North Sea off the coast of Belgium.

The new contract further expanded TotalEnergies’ EV charging network in Belgium. TTE has already won public contracts to install and operate more than 3,500 EV charging stations in Brussels and Antwerp, Belgium. Courtesy of TTE’s expertise, the latest contract is expected to play a vital role in Belgium’s gradual transition to electric mobility.

TotalEnergies Installing EV Charging Stations Globally

TotalEnergies has expertise in developing EV charging stations and has electric charging point networks in operation or under construction in several cities across the globe. TTE has long-term plans to install more than 150,000 electric vehicle charge points in Europe by 2025.

With countries across the globe recognizing the need for cutting vehicle-related pollution, the acceptance of EVs is going to increase at a quick pace. With more advanced EV vehicles being developed by vehicle manufacturers, consumers have started to accept them and contribute toward the reduction in transportation-related emissions.

TotalEnergies is expected to benefit from EV infrastructure development and aid in charging a huge volume of EVs through clean power, further cutting emissions.

EV Use Will Increase Demand for Charging Units

Per International Energy Agency, the use of EVs is going to increase around the globe and EVs are expected to account for about 10% of the road vehicle fleet by 2030. Total EV sales are expected to reach 18 million in 2025 and more than 30 million vehicles in 2030, suggesting 157.1% and 328.6% growth, respectively, from the 7 million reported in 2021.

The huge increase in EV vehicle use in the next few years will require a well-structured EV charging network, which will also assist in cutting down vehicle-related emissions. The majority of EV charging developers and operators across the globe are trying to procure power for EV charging stations from clean sources, further cutting emissions.  

The possibility of sustainable growth in EV charging infrastructure is enticing the energy giants to invest in the EV charging business. Companies like BP Plc. BP and Shell Plc SHEL have been investing to expand EV charging operations.

BP acquired Chargemaster, which is the operator of the U.K.’s largest EV charging network, rebranded as BP Chargemaster. BP has also invested $7 million in IoTecha, in sync with its objective to provide more than 70,000 public EV charging points worldwide by 2030.

In order to foray into the EV charging market, Shell acquired the largest EV charging network in the U.K. in 2021 and acquired Cable Energía, which operates in Spain and Portugal, in July 2022.

Price Performance

In the past 12 months, TotalEnergies’ shares have outperformed the industry.

 

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Zacks Rank and Key Pick

TotalEnergies currently sports a Zacks Rank #1 (Strong Buy). Another top-ranked stock in the same industry is Valero Energy Corporation VLO, also sporting a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Valero Energy delivered an average earnings surprise of 33.5% in the last four quarters. The Zacks Consensus Estimate for 2022 earnings has moved up 54.1% in the past 60 days to $26.69 per share. The current dividend yield of Valero Energy is 3.32%, better than the Zacks S&P 500 composite’s 1.68%. The long-term (three to five years) earnings growth of Valero Energy is pegged at 6%.


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