TotalEnergies SE (TTE) has signed a significant Power Purchase Agreement (PPA) with Saint-Gobain, a leading multinational building materials company, to supply renewable electricity to Saint-Gobain’s French facilities. The agreement, which commences in January 2026, covers a substantial 875 GWh of electricity over a five-year period. This electricity will be sourced from TotalEnergies’ diverse portfolio of wind and solar power plants strategically located across France.
This partnership marks a pivotal step towards a shared commitment between TotalEnergies and Saint-Gobain to reduce the carbon footprint of French industry. The agreement demonstrates TotalEnergies’ proficiency in crafting customized electricity solutions that cater to the specific needs of their clients, while ensuring the origin of the green electricity provided is transparent and reliable.
Sophie Chevalier, Vice President of Flexible Power & Integration at TotalEnergies, expressed her enthusiasm about the agreement, stating, “We are delighted with this new contract with Saint-Gobain, a sign of our shared commitment to take carbon out of French industry. It also demonstrates our ability to offer electricity solutions that meet our client’s needs while ensuring the origin of the green electricity provided.”
Echoing this sentiment, Swaroop Srinath, Energy Purchasing Director for the Saint-Gobain Group, highlighted the importance of this agreement in furthering their sustainability goals. “This contract signed with TotalEnergies allows the Group to take a further step toward this goal with a reliable and continuous supply of renewable electricity for our industrial sites. With this PPA, combined with others signed by the Group in France, 30% of the electricity will be from renewable sources in France by 2027.”
This latest agreement builds upon a growing partnership between TotalEnergies and Saint-Gobain. Earlier in June 2023, the two companies signed a three-year deal for TotalEnergies to supply 100 GWh of biomethane to Saint-Gobain France, starting in 2024. Notably, in December 2023, TotalEnergies also secured a 15-year contract with LyondellBasell, a global chemical company, to provide 275 MWac of green electricity from Texas solar farms.
TotalEnergies has been actively pursuing a strategic growth path in the renewables sector. Just last week, the company outlined ambitious plans for a 4% annual global energy production growth through 2030, with a focus on oil, gas, and renewables. These plans include a target of 50% LNG growth from 2024 to 2030, as well as integrating gas-to-power solutions with renewable energy sources.
Investors seeking exposure to TotalEnergies can consider two noteworthy ETFs: the Advisor Managed Portfolios Miller Value Partners Appreciation ETF (MVPA) and the Octane All-Cap Value Energy ETF (OCTA).
On Tuesday, TTE shares experienced a slight premarket decline of 0.50%, closing at $69.09.
