PARIS & COPENHAGEN - TotalEnergies (EPA:TTEF) has acquired significant stakes in two Danish offshore wind projects and plans to develop additional large-scale wind farms across Denmark, Finland, and Sweden in partnership with European Energy. This move is part of the company's strategy to enhance its renewable energy footprint in merchant markets at a competitive cost.
The energy giant has obtained an 85% equity stake in the 240 MW Jammerland Bugt offshore wind project and a 72.2% stake in the 165 MW Lillebaelt South nearshore wind project in Denmark. These projects, confirmed by the Danish Energy Agency in December 2023, have secured exclusivity and grid connection permits, with final construction permits expected by mid-2024 and operations commencing by 2030.
The generated electricity will be sold on the wholesale market or through Corporate Power Purchase Agreements (CPPAs), which will assist corporate buyers in reducing their carbon footprint.
In addition to the Danish ventures, TotalEnergies and European Energy are set to jointly develop and operate new offshore wind projects in Sweden and Finland. They also aim to participate in the upcoming Danish offshore wind tenders, leveraging TotalEnergies' expertise in managing large-scale projects and European Energy's track record in greenfield project development and stakeholder engagement.
Vincent Stoquart, Senior Vice President of Renewables at TotalEnergies, expressed enthusiasm about the expanded collaboration with European Energy, citing the alignment with TotalEnergies' strategy for competitive renewable project development in merchant countries. Knud Erik Andersen, Group CEO at European Energy, highlighted the partnership's potential to accelerate the renewable energy transition in Northern Europe and contribute to sustainable development and energy independence in the region.
TotalEnergies' offshore wind portfolio currently exceeds 16 GW, with projects across the UK, South Korea, Taiwan, France, the US, and Germany. The company is on track to increase its renewable electricity generation capacity to 35 GW by 2025 and produce over 100 TWh by 2030, as part of its ambition to achieve net zero by 2050.
The agreement between TotalEnergies and European Energy is subject to regulatory approval from the relevant authorities. This expansion into the Nordic offshore wind market follows a previous agreement in September 2023 where the two companies joined forces to develop onshore renewable projects in various locations.
Information for this article is based on a press release statement.
InvestingPro Insights
In light of TotalEnergies' strategic expansion into the Nordic offshore wind market, real-time data from InvestingPro provides additional context for investors monitoring the company's performance. With a robust market capitalization of 147.5 billion USD and a price-to-earnings ratio of 7.85, TotalEnergies presents itself as a substantial player in the energy sector. The adjusted P/E ratio for the last twelve months as of Q3 2023 further underscores the company's value at 6.53, suggesting a potentially undervalued stock in comparison to its earnings.
InvestingPro Tips highlight TotalEnergies' consistent approach to shareholder returns, with management actively engaging in share buybacks and maintaining dividend payments for an impressive 48 consecutive years. The dividend yield as of the end of 2023 stands at 3.78%, paired with a notable dividend growth of 20.57% over the last twelve months ending Q3 2023. This commitment to dividends, coupled with the company's moderate level of debt and low price volatility, paints a picture of a stable investment with regular income potential.
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