TotalEnergies' Largest US Utility-Scale Solar Farms Start Operations
TotalEnergies SE TTE announced that it has started commercial operations of Danish Fields and Cottonwood, two utility-scale solar farms (located in southeast Texas) with integrated battery storage. These new projects, with a combined capacity of 1.2 gigawatts (GW), are part of a portfolio of renewable assets totaling 4 GW in operation or under construction in Texas.
In the rapidly expanding Electric Reliability Council of Texas (“ERCOT”) market, the start-ups of Danish Fields and Cottonwood demonstrate TotalEnergies' capacity to provide competitive renewable power to meet its customers' as well as own decarbonization objectives.
Key Details of TTE’s Two New Projects
Danish Fields, with 1.4 million ground-mounted photovoltaic panels and a 720-megawatt peak (MWp) capacity, is TotalEnergies' biggest solar farm in the United States. Danish Fields also has a 225 megawatt-hour (MWh) battery storage system from TotalEnergies' battery division, Saft.
Danish Fields’ 70% solar capacity has been contracted through long-term Corporate Power Purchase Agreements signed with industry players like Saint-Gobain, which has an upside-sharing mechanism indexed on merchant price. The remaining 30% should aid the decarbonization efforts of TTE’s industrial facilities in the Gulf Coast area of the United States. These three projects, together with Myrtle Solar, which went online in 2023, and the currently-under-construction Hill 1 solar farm, are expected to provide all of TotalEnergies' industrial locations in Port Arthur and La Porte, TX, and Carville, LA.
Cottonwood has a capacity of 455 MWp, with more than 847,000 ground-mounted photovoltaic panels. The site will also include a 225 MWh battery storage facility supplied by Saft, expected to be operational in 2025. Cottonwood’s electricity production is also contracted under long-term PPA indexed to merchant prices through an upside-sharing mechanism with LyondellBasell and Saint-Gobain.
TotalEnergies Prioritizes Clean Energy
TotalEnergies has a portfolio of large-scale solar, storage, onsite B2B solar distributed generation, onshore and offshore wind projects in the United States. TTE is focused on achieving a combined gross capacity of 10 GW by 2025, and more than 25 GW by 2030 in the country. The company has also added 1.5 GW of flexible power production capacity with the acquisition of three gas-fired power plants in Texas.
In an effort to reach net zero by 2050, TotalEnergies is developing a world-class, cost-competitive portfolio that combines flexible assets like combined-cycle gas turbine and storage with renewable energy sources like solar, onshore and offshore wind. The idea is to provide clean, reliable electricity to its customers.
TotalEnergies had an installed gross renewable power generating capacity of 22 GW at the end of 2023. With further growth, TotalEnergies plans to produce 35 GW of power in 2025 and more than 100 TWh of net electricity by 2030.
Other Companies’ Focus on Renewable Energy
Along with TTE, other companies like BP plc BP, ExxonMobil Corporation XOM and Equinor ASA EQNR are also set to lower emissions and increase renewable energy operations.
BP has set an aggressive energy transition plan to capitalize on the mounting demand for clean energy. By 2030, it plans to reduce emissions from operations by 30-35%. BP has set an ambitious goal of developing 50 GW of net renewable energy generating capacity by 2030.
BP’s long-term (three to five years) earnings growth rate is 2%. The Zacks Consensus Estimate for 2024 sales indicates a year-over-year increase of 7.9%.
ExxonMobil has been working to reduce emissions by developing more efficient fuels. The company intends to make large investments in emission-reduction projects over the next few years. By 2050, it intends to achieve a net-zero ambition by electrifying operations, using lower-carbon power and upgrading equipment.
XOM’s long-term earnings growth rate is 3%. The Zacks Consensus Estimate for 2024 sales indicates a year-over-year increase of 5.2%.
EQNR is investing actively in renewable energy projects, comprising power generation from solar and wind energy. Equinor aims to attain profitable growth within renewables and expects a production capacity of 4-6 GW by 2026 and 12-16 GW by 2035.
EQNR’s long-term earnings growth rate is 2.2%. The Zacks Consensus Estimate for 2024 EPS indicates a year-over-year decrease of 3.8%.
TTE’s Stock Price Performance
In the past three months, shares of TotalEnergies have lost 5.8% compared with the industry’s 7.3% decline.
Image Source: Zacks Investment Research
TTE’s Zacks Rank
The company currently has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
BP p.l.c. (BP) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Equinor ASA (EQNR) : Free Stock Analysis Report
TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report