TOTAL S.A. (TOT) has set up a new photovoltaic solar panel manufacturing and assembly plant with its affiliate SunPower Corporation (SPWR), at the De Vernejoul industrial park in Porcelette, Eastern France. SunPower is a manufacturer of high efficiency solar cells, solar panels and solar systems.
The plant spread across an area of 3,300 square meters will produce 150,000 solar panels annually. The panels will deliver an average efficiency of 20%. The solar panels with a generation capacity of 44 megawatts will utilize SunPower’s Maxeon solar cells that are currently deemed to have the most efficient technology.
The solar panels will render services to the European residential and commercial rooftop markets. Notably, Europe is the world’s biggest solar market. Despite the cuts to incentives, the demand in Europe for smaller-scale residential and commercial rooftop systems is expected to remain strong. Moreover, the location of the Vernejoul manufacturing facility will help French, Italian, German and Belgian customers to avail of the highest efficiency solar panels more readily.
Total is one of the largest integrated oil and gas companies in the world. It has one of the best production growth profiles among the oil super majors, characterized by an upstream portfolio with above industry-average exposure to the faster growing hydrocarbon producing regions. It also stands as a top player in chemicals.
The company remains focused on meeting the growing worldwide demand for energy. Its willingness to develop solar energy is proven by its acquisition of a 66% stake in SunPower. We believe that its collaboration with SunPower will prove to be beneficial for the company. Moreover, it is engaged in many research and development projects that focus on renewable energies. The current venture is a case in point.
However, geo-political turmoil, dependence on fluctuating oil and gas prices, and unfavorable movement in currency offset the positive catalysts of the company to a great extent. The company presently retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock.
To read this article on Zacks.com click here.
Zacks Investment Research
