Full access to Entrepreneur for $5

TotalEnergies (TTE) to Invest in Iraq's Resource Development

TotalEnergies (TTE) enters into an agreement to invest $10 billion in Iraq for the development of natural resources and clean energy generation in the...

This story originally appeared on Zacks

TotalEnergies SE TTE announced that it has signed agreements with Iraqi authorities to develop certain projects in Iraq’s Basra region. These projects are designed for the development of Iraq's natural resources to improve the country’s clean electricity supply. TotalEnergies will invest $10 billion to develop these projects.

The company will utilize its expertise to assist the Iraqi authorities in sustainable development of its natural resources. Per the agreement, the company will invest in installations to recover gas that is being flared on three oilfields and supply gas to 1.5 GW of power generation capacity in a first phase growing to 3 GW in a second phase. It will also develop 1 GWac of solar electricity generation capacity to supply the Basra regional grid. TotalEnergies will also develop a large-scale seawater treatment unit to increase water injection capacities in southern Iraq, necessary for the production of natural gas.

- Zacks

TotalEnergies’ Long-Term Goal

TotalEnergies strives to be a net-zero carbon emission company by 2050 and has taken the necessary steps to achieve the target. It is gradually building a clean electricity generation portfolio. The acquisition of SunPower Corporation SPWR has been enabling the company to expand solar operations since 2011. It now plans to scale up renewable generation capacity to 25 GW by 2025. TotalEnergies also targets to generate 40% of revenues in 2050 from low-carbon electricity sales.

It is also involved in the production of biofuels, which will be utilized by customers. This will also assist them to reduce their carbon footprint, thereby contributing to TotalEnergies’ ambition of achieving carbon neutrality by 2050.

The company has a presence in the entire value chain of LNG, which will play a very important role in the reduction of global emissions and assist it in the reduction of global warming.

Clean Energy in Focus

Per the International Energy Agency (“IEA”), lowering of emissions to net-zero level by 2050 will need massive investment and development of technologies. Per IEA, the largest innovation can come from advanced batteries, direct air capture and hydrogen electrolyzers. The development of niche technology will require huge investment and offer substantial growth opportunities at the same time.

Given the possibility of increasing the usage of renewable energy, oil and gas companies like Chevron Corporation CVX and Royal Dutch Shell Plc (RDS.B), among others, are also investing heavily in the renewable energy space.

Price Performance

In the past 12 months, TotalEnergies’ shares have underperformed the industry.

Zacks Investment Research

Image Source: Zacks Investment Research

Zacks Rank

It currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks' Top Picks to Cash in on Artificial Intelligence

In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.

See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report


Chevron Corporation (CVX): Free Stock Analysis Report


Royal Dutch Shell PLC (RDS.B): Free Stock Analysis Report


SunPower Corporation (SPWR): Free Stock Analysis Report


TotalEnergies SE Sponsored ADR (TTE): Free Stock Analysis Report


To read this article on Zacks.com click here.


Zacks Investment Research