TotalEnergies (TTE) to Supply Clean Energy to Saint-Gobain
TotalEnergies TTE recently announced that it has signed a new 15-year renewable Power Purchase Agreement (PPA) with Saint-Gobain. This deal will allow Saint-Gobain to cut down its emission levels in North America.
According to the agreement, TotalEnergies will supply 100 megawatts (MW) of clean energy from its Danish Fields Solar farm in Texas. The solar farm, expected to come online in 2024, will be the company’s largest utility-scale operated solar farm in the United States, with a capacity of 720 MW.
TTE’s Clean Energy Focus
TotalEnergies, which aims to achieve net zero emissions by 2050, had a gross renewable power generation installed capacity of 19 gigawatts (GW) as of July 2023. The company plans to expand its business to reach 35 GW of gross production capacity from renewable sources and storage by 2025 and 100 GW by 2030.
Notably, its recent achievements in the renewable sector include the joint venture with Adani Green Energy Limited to build a portfolio of 1,050 MW alternating current and a contract to install and operate 1,100 high-power charge points for electric vehicles in Germany.
With industries across the board rapidly adopting renewables as their preferred choice of energy source, TotalEnergies' efforts to expand its renewable portfolio, including the latest agreement signed with Saint-Gobain, can be expected to bolster its position in the expanding renewables market.
TTE’s Prospects in the United States
The United States, with a vast solar resource potential, continues to be the forerunner in the global renewable space. Per the Mordor Intelligence’s Report, the U.S. Renewable Energy Market size is expected to grow from 395 gigawatts (GW) in 2023 to around 636 GW by 2028, at a compound annual growth rate of 10.01% during 2023-2028.
TotalEnergies has been actively making developments to expand its presence in the U.S. renewable energy market. It has a solar energy portfolio of more than 25 GW in the United States. The recent announcement will enable it to speed up its development in the country.
In May 2023, TTE collaborated with Imerys to maintain and operate a 15 MW direct-current ground-mounted solar array and 7.5 MW-hour energy storage system at its Lompoc facility in Santa Barbara County, CA.
Price Performance
Over the past year, shares of TTE have surged 25.7% compared with the industry’s growth of 17.1%.
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Zacks Rank & Key Picks
TotalEnergies currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector are Constellation Energy Corp. CEG, Arch Resources Inc. ARCH and California Resources Corp. CRC, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CEG’s long-term earnings growth rate is pegged at 23.3%. The Zacks Consensus Estimate for 2023 earnings per share (EPS) has moved up by 24.6% in the past 60 days.
The Zacks Consensus Estimate for ARCH’s 2023 EPS has moved up by 8.2% in the past 60 days. The stock boasts a four-quarter average earnings surprise of 18.21%.
The Zacks Consensus Estimate for CRC’s 2023 EPS indicates an improvement of 1.2% from that reported in 2022. The Zacks Consensus Estimate for 2023 sales indicates an improvement of 1%.
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