How are 4 NZX energy stocks doing amid NZ’s green energy initiatives?

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How are 4 NZX energy stocks doing amid NZ’s green energy initiatives?

 How are 4 NZX energy stocks doing amid NZ’s green energy initiatives?
Image source: hrui, Shutterstock.com

Highlights

  • NZ is taking up many projects to develop its green hydrogen technology.
  • Ballance Agri-Nutrients Limited and Hiringa Energy Limited have collaborated on a major clean-tech project.
  • NZ wants to become carbon neutral by 2050. 

Green hydrogen is crucial for the green energy transition of NZ as it reduces the country’s dependency on fossil fuels for food and energy.

What is NZ doing to develop its green hydrogen technology?

Ballance Agri-Nutrients Limited and Hiringa Energy Limited have collaborated for a major clean-tech project at Taranaki. The $50 million project will be based on Ballance’s Kapuni ammonia-urea plant, where electricity will be produced by 4 wind turbines to give power to the plant and produce hydrogen from water through electrolysis.

NZ also opened its first green energy plant in Taupo, which uses electricity produced from geothermal power. Meridian and Contact are also exploring plans to build the first large-scale green hydrogen plant at Tiwai Point.

Let’s have a look at how these 4 NZX energy stocks doing.

4 NZX Energy stocks and their details

Image source: © 2021 Kalkine Media®, Data source- Refinitiv

Meridian Energy Limited (NZX:MEL, ASX:MEZ)

NZ-based electricity generator Meridian Energy released its monthly operating report for December 2021 recently. The Group’s monthly total inflows were 113% of the historical average for December, while New Zealand Aluminum Smelter’s average load stood at 569MW.

While national hydro storage fell to 115% of the historical average from 128% in December 2021 to 11 January 2021, national electricity demand in December 2021 was 2% lower than the same month last year.

MEL ended the day 0.44% in red to close at $4.51.

Contact Energy Limited (NZX:CEN;ASX:CEN)

Contact Energy, a leading privately owned energy retailer and distributor, released its December operating report on Tuesday. CEN’s customer business reported mass market electricity and gas sales of 288 GWh in November 2021, up from 286 GWh in November 2020.

DO READ: Contact (NZX:CEN): What is its latest monthly report all about?

CEN’s wholesale business delivered an electricity and steam net revenue of $83.30/MWh in the month, up from $70.29/MWh for December 2020. This business also contracted wholesale electricity sales totaled 644GWh.

The Group intends to transform NZ into a 100% renewable electricity system.

CEN ended the day 3.29% in green to close at $7.85.

NZ Windfarms Limited (NZX:NWF)

NZ’s specialist wind farm owner and operator, NWF, appointed Craig Stobo as its new director, who will begin his tenure from 1 February 2022.

ALSO READ: Which are the top 4 NZX energy stocks for 2022 and beyond?

NWF also submitted an application in December to apply for consent and repower the Te Rere Hau wind farm to the COVID-19 Recovery Act 2020 and fast-track the approval process.

The Group paid a dividend of 0.15cps on 31 December 2021.

NWF ended the day 2.27% in red to close at $0.215.

Trustpower Limited (NZX:TPW

Trustpower, which provides an array of services provider related to the internet, energy and phone, released its operating report for the quarter ended 31 December 2021. The Group retained its EBITDAF expectation to be between $210 to $225 million and expects its capex to be in the range of $34 million to $44 million for FY22.

DO READ: How are 4 NZX energy stocks faring amid Tonga’s volcanic eruption?

Retail stayed steady during the quarter despite COVID-19 while mobile connections continued to show growth.

TPW ended the day 1.97% in red to close at $6.96.

Bottom Line

NZ wants to become carbon neutral by 2050 and is on a path to a low-emissions and climate-resilient future.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)

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