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TotalEnergies (TTE) Starts Production at 640MW Yunlin OWF

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TotalEnergies SE TTE announced that the first wind turbine from Yunlin Offshore Wind Farm (OWF) in Taiwan has started to produce clean power and has been successfully connected to the grid. Yunlin OWF has a total capacity of 640 megawatts (MW) and is operated by wpd. 80 wind turbines with a capacity of 8MW each will be used to bring the total project online.

Next goal of the developers is to make the first batch of nine turbines fully operational by the end of this year. These nine turbines will have the capacity to produce 270 GWh of clear energy per year. TotalEnergies, along with other partners like EGCO Group and a consortium of Japanese investors led by Sojitz, will develop the project and assist in Taiwan’s objective of generating 20% of renewable electricity by 2025.

TotalEnergies is already developing a portfolio of offshore wind projects with a total capacity of more than 6 gigawatts, of which 2/3 are bottom-fixed and 1/3 are floating. TotalEnergies has expertise in developing utility scale renewable projects, and given the growth opportunities in theTaiwanese market, TTE will look forward to exploring the same.

TotalEnergies’ Clean Energy Vision

TotalEnergies targets to achieve zero emissions by 2050 and is taking necessary measures to attain the same. TTE is making systematic investments in its operations to achieve clean energy transition goals. TotalEnergies maintained planned investment in the range of $1.5-$2 billion in low-carbon electricity generation.

At the end of September 2021, TotalEnergies' gross renewable electricity generation capacity was 10 GW. TotalEnergies will continue to expand this business to reach 35 GW of gross production capacity from renewable sources by 2025, and then 100 GW by 2030. TotalEnergies is gradually building a portfolio of low-carbon businesses that could account for 15-20% of sales by 2040.

Steps Taken by Energy Majors to Trim Emission

TotalEnergies’ management expects that a joint effort will be required from the big oil majors to address the problems associated with emissions.

Global integrated oil and gas company Chevron Corporation CVX also agrees that the way forward in the energy space is by lowering carbon emissions. The company is now targeting to lower 40% carbon emissions from oil production and 26% carbon emission from gas production by 2028 from 2016 levels. ExxonMobil XOM also announced plans to reduce carbon emissions by 15-20% by 2025 in upstream operation from 2016 levels. The positive steps taken by the oil major will assist in cutting down emission.

Chevron has invested in development in offshore wind projects in the United States, while ExxonMobil signed agreements to purchase 500 MW of wind and solar power in Permian Basin, which will further promote the development of clean assets.

The Zacks Consensus Estimate for 2021 earnings for Chevron and ExxonMobil has moved up by 24.5% and 9% in the past 60 days. The long-term earnings growth (three to five years) of Chevron and ExxonMobil are pegged at 5.53% and 14.07% respectively.

Price Performance

Year to date, TotalEnergies’ shares have underperformed the industry.

Zacks Investment Research
Zacks Investment Research

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Zacks Rank & Another Key Pick

TotalEnergies currently sports a Zacks Rank #1 (Strong Buy). Another company worth considering from the same space is Chesapeake Energy CHK, sporting the same rank as TotalEnergies.

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

Chesapeake Energy delivered an average surprise of 23% in the last four quarters. The Zacks Consensus Estimate for 2021 and 2022 earnings for Chesapeake Energy has moved up 11.9% and 31.7%, respectively, in the past 60 days.


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Chevron Corporation (CVX) : Free Stock Analysis Report

Exxon Mobil Corporation (XOM) : Free Stock Analysis Report

Chesapeake Energy Corporation (CHK) : Free Stock Analysis Report

TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report

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