TOTAL S.A. (NYSE:TOT) announced that its unit Total Quadran has acquired Global Wind Power (GWP) France, a company with a 1000-megawatt (“MW”) portfolio of onshore wind projects, including 250 MW scheduled to come on stream by 2025.
The acquisition will boost TOTAL’s renewable power capacity in France. The company — through its subsidiary — already has 1000 MW of installed and operated capacity, including more than 500 MW of onshore wind. This acquisition will also speed up TOTAL’s wind power generation capacity in France.
TOTAL Aims to Add More Clean Energy
TOTAL is focused on developing clean energy projects in different regions across the globe. The company is gradually building a portfolio of low-carbon businesses that could account for 15-20% of sales by 2040.
Total’s long-term plan is to develop 25 Gigawatt (“GW”) of clean renewable assets by 2025. Currently, the company has more than 3 GW of renewable assets. It is not going to be an uphill task for the company to attain the target at it has already announced 5 GW of solar projects at the beginning of this year. The acquisition of SunPower Corporation (NASDAQ:SPWR) enabled TOTAL to expand footprint in the solar energy space.
Rising Usage of Renewables
The U.S. Energy information Administration (“EIA”) release indicated that clean renewable energy will account for the majority of global power generation by 2050. Per EIA, nearly 28% of the world’s power was attributed to renewables in 2018, courtesy of improved technology and increasing awareness about emissions. Renewable sources are expected to account for 49% of global power generation by 2050.
Rising demand for renewable projects across the globe is due to the damage caused by air pollution to environment. When everyone across the globe is concerned about the novel coronavirus and how to contain it, a report from Earth.Org indicates that air pollution is silently killing seven million people across the globe annually.
The renewable energy space will offer enough growth opportunities to investors. In addition to TOTAL, oil and gas companies like Chevron Corporation (NYSE:CVX) and Royal Dutch Shell (LON:RDSa) Plc RDS.A, among others, are also investing heavily in the renewable energy space.
Price Performance
In the past three months, TOTAL’s shares have outperformed the industry.
Zacks Rank
TOTAL 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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