Wednesday, July 17, 2024
Wednesday, July 17, 2024
Home » TotalEnergies (TTE) to Assist Azerbaijan in Energy Transition

TotalEnergies (TTE) to Assist Azerbaijan in Energy Transition

by Gaioz Arabidze
0 comment

TotalEnergies’ TTE management and other dignitaries of the Republic of Azerbaijan witnessed the inauguration ceremony of the Absheron gas field, whose first development phase started production in early July 2023 and is producing 1.5 BCMA (billions of cubic meters per year).

TotalEnergies’ management and other interested parties in the Absheron gas field discussed launching the second phase of the project, which will increase the field’s production to 5.5 BCMA and assist Azerbaijan in fulfilling its ambition to supply natural gas to the European market.

TotalEnergies also plans to participate in the development of Azerbaijan’s renewable energy potential under the Memorandum of Understanding signed in June 2023 to assess and develop 500 megawatts (MW) of renewable wind and solar energies and energy storage systems for the national grid.

The Republic of Azerbaijan has committed to reducing 35% of greenhouse gas (GHG) emissions by 2030 from the 1990 base year. The new green projects TotalEnergies is involved in will surely contribute toward the Republic of Azerbaijan’s energy transition.

Long-term Goals

TotalEnergies aims to achieve net zero emissions by 2050 and had a gross renewable electricity generation installed capacity of 18 gigawatts (GW) as of Mar 31, 2023. The company has a long-term capital expenditure plan to strengthen its renewable energy sources and will invest $5 billion in 2023 to add renewable assets and generate clean electricity.

TotalEnergies has a portfolio of gross renewable capacity under construction and is on track to develop 35 GW by 2025, with more than 20 GW already having long-term power purchase agreements. The company is gradually building a portfolio of low-carbon businesses that could account for 15-20% of sales by 2040.

TotalEnergies is expanding its renewable operations through organic and inorganic initiatives. The acquisition of Total Eren, which operates 3.5 GW of renewable energy capacity and boasts solar, wind, hydroelectric and storage project pipelines of over 10 GW in 30 countries, will expand TotalEnergies’ renewable operations globally.

Rising Use of Clean Fuel

Per the International Energy Agency’s (“IEA”) report, global renewable capacity will touch 440 GW in 2023, increasing 107 GW from the year-ago levels. The IEA expects global renewable capacity to touch 550 GW in 2024. The rising demand for renewable energy will ensure high returns for the companies operating in the space.

Government incentives and consumer awareness are not only resulting in the development of utility-scale renewable projects, but many small projects are also coming up to meet local area needs. Oil and Gas companies like BP PlcBPExxonMobil XOM and Chevron Corporation CVX are investing on a consistent basis in renewable energy projects.

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 the company has developed so far. By 2030, it plans to reduce emissions from operations by 30-35%.

ExxonMobil has plans to invest $17 billion through 2027 to reduce carbon emissions. XOM focuses on carbon capture and storage, hydrogen and biofuels.

In 2022, Chevron acquired Renewable Energy Group. This deal will assist the company in achieving its 100,000 barrels of renewable fuel production per day by 2030.

Price Performance

Over the past year, shares of TTE have gained 26.5% compared with the industry’s growth of 13.3%.

Zacks Rank

TotalEnergies currently carries a Zacks Rank #4 (Sell).

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

Source : Nasdaq

You may also like

Soledad is the Best Newspaper and Magazine WordPress Theme with tons of options and demos ready to import. This theme is perfect for blogs and excellent for online stores, news, magazine or review sites. Buy Soledad now!

Bakunovosti, A Media Company – All Right Reserved.