What is the progress on Southland green hydrogen plant?

Highlights

• The proposal to create a green hydrogen plant in Southland has been receiving solid interest from both local and global businesses.
• Recently, Commerce Commission gave its nod to Mercury NZ to acquire the retail business of Trustpower.
• Infratil with Pacific Radiology Group is implementing a conditional deal to collaborate with Auckland Radiology Group.

Lately, two energy sector behemoths - Contact and Meridian Energy - stated that a proposal to develop the first large-scale green hydrogen plant in Southland had been receiving solid interest from both local and global businesses.

Approximately, 80 promising suppliers and partners have given their response, showing a keen interest in the offer of the hydrogen plant concept.

On the given background, let’s skim through 5 ASX and NZX-listed energy companies and their latest updates.

Image source: © 2021 Kalkine Media New Zealand Ltd, data source- Refinitiv

Mercury NZ Limited (NZX:MCY; ASX:MEL)

Electricity generator Mercury NZ Limited has recently accepted regulatory body, Commerce Commission’s approval to acquire the retail business of Trustpower Limited (NZX:TPW).

Earlier on 22 September, stakeholders of Trustpower gave their nod for the acquisition. It is anticipated that by the first six months of 2022, the transaction would be finalised.

However, the deal is contingent on the execution of the Tauranga Energy Consumer Trust Deed restructure.

On 5 October, at the time of writing, Mercury NZ was trading at NZ$6.365, falling by 2.38%.         

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

Known as the biggest electricity generator in NZ, Meridian Energy Limited, notified last month about Jason Stein.

He is the Chief Executive Officer of Meridian Energy Australia and Powershop Australia and will be serving his tenure till 31 March next year or before the finalisation of Meridian Energy Australia ownership review.

On 5 October, at the time of writing, Meridian Energy was trading down by 0.70% at NZ$4.955.

Related article; Is Meridian Energy(NZX:MEL) on a growth path post FY21?

Genesis Energy Limited (NZX:GNE; ASX:GNE )

New Zealand-domiciled diversified energy company, Genesis Energy Limited, deals with electricity, LPG, and natural gas.                       

Last week, the Company notified the market that Emma Oettli was hired as acting CFO, effective from 1 November.  Oettli is no stranger to the Company since she has been working as GNE’s Group Manager, planning and Reporting. Meanwhile, the search for a permanent CFO continues.

On 5 October, at the time of writing, Genesis Energy was trading up by 1.22% , at NZ$3.320.

Also read; Genesis Energy (NZX:GNE): How is the Company tapping into solar power?

Infratil Limited (NZX:IFT; ASX:IFT)

Investor of various sectors like transport, energy, and infrastructure, Infratil Limited is a dual-listed company.

Of late, the Company has notified that along with Pacific Radiology Group, it was implementing a conditional deal to collaborate with Auckland Radiology Group for developing the country’s diagnostic imaging business.

If all goes well, in terms of approvals for the change of control related to clinic leases and material contracts, the deal could be finalised by 31 October 2021.

On 5 October, at the time of writing, Infratil was trading at NZ$8.39, increasing by 1.82%.

Related article; Infratil (NZX:IFT): What is its investment activity focused on?

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

Voted as the Most Trusted Gas and Electricity Provider this year by New Zealanders, Contact Energy Limited, is headquartered in Wellington.

In its monthly operating report for August 2021, the Company’s customer business noted 436GWh of mass electricity and gas sales lesser than 450GWh noted in pcp.

South Island-controlled storage was 138% of the mean and North Island-controlled storage was 83% of the mean as on 9 September 2021.

On 5 October, at the time of writing, Contact Energy was trading at NZ$8.21, declining by 1.79%.

Bottom Line

A comparative stable political scenario and realistic and increasing carbon price are good reasons for Kiwis to reduce fossil fuels and move towards cleaner options. Therefore, there is a huge scope for hydrogen to take over fossil fuels in various sectors of the economy.