Yahoo Finance TotalEnergies (TTE) to Produce More Sustainable Aviation Fuel
TotalEnergies TTE announced that it increased the production of sustainable aviation fuel (SAF) and low-carbon energies at its Grandpuits site. The primary objective behind this decision is to reduce transport-related emissions. TotalEnergies aims to produce 285,000 tons of SAF, nearly double the capacity announced in 2020.
The construction of a biomethane production unit at the TotalEnergies Grandpuits site will further lower emissions and convert the organic waste from the biorefinery into biogas. The unit will have an annual production capacity of 80 gigawatt hours (GWh), sufficient to meet the annual energy needs of 16,000 people.
Rising Sustainable Aviation Fuel Demand
Per a Transparency Market Research report, the global sustainable aviation fuel market will reach $402 billion in 2050. The primary reason behind the massive expansion is the greater adoption of SAF by the aviation industry to reduce CO2 emissions.
TotalEnergies’ determination to increase SAF is a well-calculated decision from the company’s management to benefit from the rise of SAF on a global scale. The hike in SAF production volumes places TotalEnergies among other high-volume SAF producers like Neste and Gevo Inc. GEVO.
Goal to Cut Down Emission
TotalEnergies strives to become a net-zero carbon emission company by 2050 and has been taking steps to achieve the same. It aims for a portfolio of gross installed capacity of 35 gigawatts (GW) by 2025. TTE is gradually building a portfolio of low-carbon businesses that could account for 15-20% of sales by 2040.
Given the rising growth opportunity in the renewable energy space, energy majors like Shell SHEL and BP plc BP, among others, are investing steadily to expand their operations in the renewable energy space.
Shell plans to add 50 GW of renewable generation projects to its portfolio and make a gradual transition toward renewable energy sources from conventional sources of fuel.
BP has come up with an aggressive energy transition plan to capitalize on the mounting demand for clean energy. In a decade, BP has set an ambitious goal of developing 50 GW of net renewable energy generating capacity, representing a massive improvement from the current capacity of 2.5 GW.
Price Performance
In the past six months, shares of TotalEnergies have gained 0.6% against the industry’s 6% decline.
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Zacks Rank
TotalEnergies currently carries 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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