TotalEnergies (TTE) stakes in AGEL strengthen its own assets

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TotalEnergies SETTE’s renewable energy portfolio under construction has grown by more than 1.4 gigawatt (GW) thanks to its 20% stake in Adani Green Energy (AGEL). Recently, AGEL acquired 100% of the capital of SB Energy India, which has a total portfolio of renewable projects of 5 GW spread across four Indian states.

TotalEnergies focused on expanding the renewable energy production portfolio through acquisitions, joint ventures, partnerships and organic methods. The long-term goal of the company will be to continue to develop the renewable business until it reaches 35 GW of gross generation capacity from renewable sources by 2025 and 100 GW by 2030. Its acquisition of majority stakes in SunPower Corporation SPWR in 2011 was a positive step taken by the company to develop the renewable business.

TotalEnergies’ vision of clean energy

TotalEnergies aims to achieve zero emissions by 2050 and is taking the necessary measures to achieve it. The company systematically invests in its operations to achieve its clean energy transition objectives. The company will invest $ 13 to $ 15 billion per year over the period 2022-2025 and will allocate 50% of these investments to growing its business and the rest to sustaining operations.

Of the planned growth investment, 50% will be devoted to the development of new energies, mainly renewable and electricity, and the other half to natural gas, mainly LNG. TotalEnergies aims to increase LNG production by 30% and significantly improve biogas production by 2025. Increasing the production of clean sources of fuel and electricity will help it reduce global emissions.

Measures taken by oil majors to reduce emissions

TotalEnergies management expects a joint effort to be required from the major oil companies to address the issue of emissions and increasing climate.

Integrated global oil and gas company Chevron Corporation CVX also agrees that the way forward in energy is to reduce carbon emissions. The company now aims to reduce carbon emissions from oil production by 40% and carbon emissions from gas production by 26% by 2028 from 2016 levels. ExxonMobil XOM also announced plans to reduce carbon emissions by 15-20% by 2025 in upstream operations from 2016 levels.

Undoubtedly, positive initiatives have been taken by the oil majors to reduce emission levels. We expect more efforts from other oil and gas companies in this direction to reduce emissions and meet the climate target set in the Paris Agreement.

Price return

Over the past 12 months, the TotalEnergies share has outperformed the industry.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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