Yahoo Finance TotalEnergies (TTE) to Invest in 1 GW Kazakhstan Wind Project
TotalEnergies SE TTE recently announced, on the occasion of the COP28 in Dubai, that it has signed an agreement to invest in the largest wind project in Kazakhstan. The Mirny wind project will utilize 160 turbines to generate 1 gigawatt (GW) of clean power, which will lower the emission of 3.5 million tons of Carbon dioxide annually in the country. The power will be enough to supply low-carbon electricity to more than 1 million people.
The Mirny wind project will require an investment of nearly $1.4 billion and TotalEnergies, with its knowledge and expertise, will be its primary operator. TTE will develop this wind project in partnership with the National Wealth Fund Samruk-Kazyna and the National Company KazMunayGas. Each Kazak partner will own a 20% interest in the project.
TotalEnergies has been working actively to expand its renewable energy generation portfolio and fully supports the commitment of more than 110 nations to triple their renewable energy capacity by 2030.
TotalEnergies' Energy Vision
TotalEnergies has already decided its long-term renewable energy goal of generating more than 100 Terawatt hours of clean energy by 2030. The company has been increasing its renewable energy portfolio through acquisitions, partnerships and organic methods.
In 2022-end, TotalEnergies had a gross renewable electricity generation installed capacity of 17 GW. The company will make substantial investments each year in its renewable business to expand operations globally. Large projects like Mirny will assist the company in meeting its long-term renewable goal.
This oil and gas major is gradually building a portfolio of low-carbon businesses that could account for 15-20% of its sales by 2040.
Renewable Energy Gaining Traction
A transition in the energy space is evident, with industries now focusing on lowering emissions and planning to use energy generated from clean sources. Utilities are expanding their clean energy generation portfolios. Creating and operating large utility-scale renewable projects are viable, courtesy of the technological development of large battery storage projects. Battery storage projects are making renewable projects more dependable.
The new Mirny wind project in Kazakhstan will also have a 600 MWh battery energy storage system for reliable power supply to customers. Utilities that are investing in clean energy projects are also investing in battery storage projects so that clean power generated during the off-peak demand period can be utilized later, when demand rises.
Utilities like Dominion Energy D, Alliant Energy Corp. LNT and Pinnacle West Capital Corporation PNW, among others, are developing battery storage projects along with clean energy power projects.
Dominion is working on battery storage projects, offshore wind projects and hydropower projects to lower emissions. Its long-term objective is to add 24 GW of battery storage, solar, hydro and wind (offshore as well as onshore) projects by 2036.
Alliant Energy’s geographic location and favorable regulatory developments bode well for the development of wind projects. In August 2023, the Public Service Commission of Wisconsin approved two Alliant Energy battery energy storage projects — the 100-MW Grant County Battery project and the 75-MW Wood County Battery project.
Pinnacle West aims to develop 1,600 MW of clean energy and storage that are expected to be placed in service by 2024 for Arizona Public Service Company customers. It also plans to install more than 2,100 MW of energy storage by 2025, including the energy storage projects under purchase power agreements and Arizona sun retrofits.
Price Performance
Over the past six months, shares of TTE have risen 12.6% compared with the industry’s growth of 11.2%.
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Zacks Rank
TotalEnergies currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report
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