On Monday, TotalEnergies SE (NYSE:TTE) penned a new memorandum of understanding with Veolia Environnement (OTC:VEOEY) to expand their partnership in advancing the energy transition and circular economy.

According to the agreement, the companies intend to combine their respective industrial expertise, with TotalEnergies contributing its knowledge in monitoring and reducing methane emissions, as well as developing and supplying low-carbon energy solutions.

Meanwhile, Veolia will bring its capabilities in water resource management and the recovery of emerging waste streams.

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The agreement aligns with both companies' commitments to reduce greenhouse gas emissions and cut water consumption, while accelerating innovation across industries.

Veolia is evaluating the use of TotalEnergies' AUSEA drone-based methane detection technology at its landfills to enhance emission monitoring. The initiative supports Veolia's goal of capturing 80% of landfill methane by 2032, demonstrating the broader potential of AUSEA beyond oil and gas applications.

In parallel, Veolia will help TotalEnergies reduce freshwater use by 20% in water-stressed areas by 2030 and improve effluent quality.

Following their recent agreement with SATORP in Saudi Arabia, the companies also plan to collaborate on wastewater reuse projects at TotalEnergies sites, repurpose municipal wastewater for industrial use, and apply Veolia's treatment technologies to boost water efficiency.

Last week, TotalEnergies EP Norge agreed to sell its 39.89% non-operated stake in the West Ekofisk and Albuskjell fields to VÃ¥r Energi and its 20.23% non-operated stake in the Tommeliten Gamma field to Orlen Upstream Norway.

Investors can gain exposure to the stock via First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF (NYSE:EIPX) and the 2023 ETF Series Trust II GMO International Value ETF (NYSE:GMOI).

Price Action: TTE shares are down 0.12% at $59.63 premarket at the last check on Monday.

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