TotalEnergies (TTE) Inks Recycling Deal With Plastic Energy
TotalEnergies' (TTE) deal with Plastic Energy further promotes the usage of recycled plastic. The existing agreements between these companies are set to ensure yearly reuse of 81,000 tons of plastic...
TotalEnergies SE TTE recently announced that it has signed a new agreement with Plastic Energy for the promotion and usage of recycled plastic. Per the deal, Plastic Energy plans to build a second advanced recycling plant in Sevilla, Spain. This plant is expected to become operational by 2025 and will process and convert 33,000 tons of post-consumer end-of-life plastic waste yearly to produce a recycled feedstock called TACOIL. TotalEnergies will convert the TACOIL into virgin-quality polymers, which can be used for food-grade packaging.
TotalEnergies and Plastic Energy signed an agreement in September 2020 to build a plastic waste conversion facility with a capacity of 15,000 tons per year. This facility will become operational by 2023.
Both the companies are concerned about the impact of plastic waste on the environment. Recycling of plastic waste will ensure lesser usage of plastic for landfills and lower the need for energy for the production of new plastics, thereby reducing fossil fuel consumption and curb on greenhouse gas emissions. TotalEnergies, by utilizing a large volume of recycled plastics, will assist in lowering global emissions.
Global Plastic Recycling Market
Per a ReportLinker release, the global plastic recycling market has ample opportunities to expand from the current levels. The firm predicts the global plastic recycling market to expand from $33 billion in 2020 to $47.3 billion by 2026. The United States and China are the primary contributors to the rising global demand for recycled plastic, while European countries are very promising markets for plastic recycling.
TotalEnergies, through its agreement with Plastic Energy, will be benefiting from the increasing recycled plastic demand across the globe. TotalEnergies also entered into a deal with Plastic Energy to use recycled plastic produced in Texas. When all these plastic recycling units start production, 81,000 tons of plastic waste per year will be recycled.
In the past three months, TotalEnergies’ shares have outperformed the industry.
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Zacks Rank & Other Key Picks
TotalEnergies currently sports a Zacks Rank #1 (Strong Buy). Other companies worth considering from the same space include NextEra Energy Partners NEP and Texas Pacific Land Corporation TPL. While NextEra Energy Partners holds the same rank as TotalEnergies, TPL has a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
NextEra Energy Partners delivered an average surprise of 99.6% in the last four quarters. The Zacks Consensus Estimate for NEP’s 2022 earnings has moved up 13.8% to $3.21 per unit in the past 60 days. The long-term (three to five years) earnings growth is pegged at 18.5%.
Texas Pacific Land delivered an average surprise of 15.3% in the last four quarters. The Zacks Consensus Estimate for TPL’s 2022 earnings has moved up 3.5% to $54.44 per share in the past 60 days.
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