TotalEnergies Furthers Its LNG and Clean Energy Ambitions
Like its European peers BP and Shell, TotalEnergies (NYSE: TTE) announced big plans to green up its portfolio in 2020. What set TotalEnergies apart from these two competitors, however, was that it made a bold commitment to a cleaner future without cutting its dividend. For investors looking to benefit from the continued demand for carbon fuels while increasing exposure to cleaner alternatives, TotalEnergies could be a great option. Some of its recent portfolio moves explain why.
In 2020, TotalEnergies announced it wanted to grow its electricity division from 5% of its business to 15% by 2030. At first, that may not sound like such a big deal, but step back and look at the difference between 5% and 15%, which is a full 10 percentage points. In a decade, the company wants to triple the size of this division!
Notably, at the same time, it wants to expand the absolute size of its carbon-related energy businesses. Under that top-level view, the goal is to increase the natural gas division from 40% of the total to 50%. Oil will be the smaller business, shrinking from 55% of TotalEnergies' operations to 30%, with five percentage points of that dedicated to biofuels.
Source Fool.com
