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TotalEnergies Inks 15-Year PPA With STMicroelectronics in France

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TotalEnergies SE (TTE - Free Report) and STMicroelectronics (STM - Free Report) have signed a physical power purchase agreement (PPA) to supply renewable electricity to STMicroelectronics sites in France. This includes research and development, design, sales and marketing and large-volume chip manufacturing.

The PPA is a 15-year contract, which started in January 2025 and represents an overall volume of 1.5 terawatt hours (TWh). It demonstrates TotalEnergies’ ability to provide long-term, innovative and clean-firm power solutions tailored to its customers' needs.

The renewable energy (including the guarantee of origin) generated by two new 75-megawatt (MW) wind and solar farms run by TotalEnergies will be supplied to STMicroelectronics. This power comes with structuration services to transform intermittent production into a constant volume of green electricity.

This kind of PPA is being offered for the first time in France. One of the main reasons behind the agreement's success was the wind and solar projects' beneficial effects on the local community and environment.

TotalEnergies' Focus on Clean Energy Generation

To reach net zero by 2050, TotalEnergies is developing a world-class, cost-competitive portfolio that combines flexible assets like combined-cycle gas turbines and storage with renewable energy sources like solar, onshore and offshore wind. The idea is to provide clean, reliable electricity to its customers.

By the end of 2024, TotalEnergies’ gross renewable electricity generation installed capacity had reached over 24 gigawatts (GW). With further growth, the company plans to produce 35 GW of power in 2025 and more than 100 TWh of net electricity by 2030.

In December 2024, TotalEnergies’ Saudi developer, Aljomaih Energy and Water Company, signed a 25-year PPA with the Saudi Power Procurement Company related to the 300 MW solar power project, Rabigh 2.

During the same month, TTE, along with its partner OQ Alternative Energy, the National Renewable Energy Champion, announced the signing of landmark agreements to develop 300 MW of renewable energy projects in Oman. The electricity will be delivered through long-term PPA to Petroleum Development Oman, the leading exploration and production company in the Sultanate.

Other Companies’ Focus on Renewable Energy

Along with TTE, other companies like BP plc (BP - Free Report) and Equinor ASA (EQNR - Free Report) 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%. It 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 4%. The Zacks Consensus Estimate for 2025 earnings per share (EPS) indicates a year-over-year increase of 5.3%.

EQNR is investing actively in renewable energy projects, including 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 2030.

EQNR’s long-term earnings growth rate is 5.35%. The Zacks Consensus Estimate for 2025 EPS indicates a year-over-year increase of 6.4%.

TTE’s Stock Price Performance

In the past month, shares of TotalEnergies have risen 6.8% compared with the industry’s 8.2% growth.   

 

Zacks Investment Research
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TTE’s Zacks Rank

The company 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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