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Highlights
- Green Hydrogen can undeniably be utilised for clean energy future of New Zealand
- Agreement reached between Contact Energy and Genesis Energy to provide latter with renewable electricity for more than a decade, beginning 2025.
- Trustpower has finalised its conditional retail business sale and also revealed the new name.
As a participant nation in the Paris Agreement inked in 2016, New Zealand has its obligations towards creating a cleaner greener environment. Green hydrogen has a bulk of hydrogen made up of renewable resources and can go a long way in helping the country realise zero carbon goal.
With decarbonisation being one of the top priorities of the countries across the world, in the upcoming years, green hydrogen has garnered interest from several huge gas and oil firms. Identified as a clean and cost-effective source of energy, green hydrogen is the force to reckon with.
Image Source: © 2021 Kalkine Media
On the given backdrop, let’s go through five energy sector stocks of New Zealand and their latest updates.
NZ Windfarms Limited (NZX:NWF)
This is a wind farm operator that aims to produce clean energy from the Te Rere Hau Windfarm of the country.
In the last update given by the Company during the month of May, it agreed upon a new Variable Volume Fixed Price Agreement highlighted 25% of the production for the duration between 1 October 2022 to 30 June 2023. This is inclusive of the materially increased electricity prices as compared to history that shall reflect in the revenue.
On 13 August 2021, NZ Windfarms was at NZ$0.275, down by 1.79%, at the time of market close.
Related article: Would green hydrogen play a major role in NZ’s clean energy future?
Contact Energy Limited (NZX:CEN; ASX:CEN)
This Company offers sustainable energy solutions with the aim of providing great value offers, whilst generating 80% of its electricity produce through renewable resources.
On 12 August, the Company announced an agreement with Genesis Energy Limited (NZX:GNE; ASX:GNE) according to which Contact Energy would provide Genesis Energy with clean electricity for a period of 15 years starting from 2025.
This shall amount to about 62.5 megawatts of electricity taken up by Genesis Energy, or 41% of the total Geothermal Power Station output capacity of Contact Energy, developed at Tauhara location.
On 13 August 2021, Contact Energy Limited traded at NZ$8.150, don by 0.24% at the time of market closure.
Read more: A peek into the 5 most traded NZX stocks on Friday
Z Energy Limited (NZX:ZEL) (ASX:ZEL)
This company offers fuel supply to huge organisations dealing with trucking or aviation services.
According to the presentation released on the investor day of the Company, it provided the Company’s view on long term liquid fuel demand. It described the model, the total transport tasks pertaining to road, EVS, trucks and rail services.
On 13 August 2021, Z Energy last traded at NZ$3.040, down by 1.62%, at market close.
Genesis Energy Limited(NZX:GNE) (ASX:GNE)
This company deals with regulated natural gas electricity and LPG retail services it also happens to be one of the biggest gas and electricity retailer in the country.
As mentioned earlier there is a contract struck between Genesis Energy and Contact Energy. Mike Fuge, the CEO of Contact Energy was of the view that the agreement was reached after a strong vote of confidence by both companies and their dedication towards decarbonisation as a as a goal in the time to come.
On 13 August 2021, Genesis Energy was at N$3.370, down by 0.59%, at the time of market closure.
Don’t miss: Genesis Energy (NZX:GNE): How is the Company tapping into solar power?
Trustpower Limited (NZX:TPW)
In the announcement made by this energy and internet-based company recently, it was found that its retail conditional business sale is complete, and the new business shall be known as Manawa Energy Limited. The importance of this name is immense, as it is selected in an effort to engage and include all stakeholders.
On 13 August 2021, Trustpower last traded at NZ$8.050, down by 0.86%, at the time of market close.
Related article: What are dividends? How do dividends work in New Zealand?
Bottom Line
Green hydrogen along with the other efforts being made by New Zealand to decrease its carbon footprint are steps in the right direction in order to help the country reach its sustainability goals by the year 2025. Energy Companies in the country have a huge role to play in the process and only with their adherence and co-operation can these goals be achieved.
