Carnarvon Petroleum Limited (ASX: CVN) shares are on the rise today after the company announced it has formed a joint venture to produce green diesel with Frontier Impact Group.
At the time of writing, the Carnarvon share price is trading 1.75% higher at 29 cents.
Let’s take a look at what the company announced this morning.
Green diesel joint venture
Investors are driving the Carnarvon share price higher after the company reported its 50/50 joint venture with Frontier Impact Group will prioritise the production of renewable diesel from plant biomass.
The company reports the $100 million facility can also produce biochar, which can then be refined into graphene for use in the production of batteries and electronics.
The bio-refinery is poised to begin production in late 2022 and will rely on “internationally proven technology” which has never been implemented in Australia before.
Speaking about the company’s latest joint venture, Carnarvon chief executive Adrian Cook said:
This joint venture demonstrates a clear and pragmatic start to delivering on our net-zero commitment, while ensuring long-term, sustainable shareholder value remains a key determinant in our decision making.
He added:
There is a clear link between the delivery of our core projects, securing carbon offsets for these through this venture and producing valuable products such as renewable diesel.
Pivoting to show climate-change risks
Carnarvon was on the Australian Securities and Investments Commission’s radar in 2020, alongside a run of oil and gas players, for failing to report on its climate-change impacts.
Since these “climate pressures” emerged, the company has produced its first sustainability report, disclosing climate-change risks and actions taken to offset the same.
Carnarvon has today also committed to producing net-zero carbon emissions by 2050 or sooner.
Carnarvon share price snapshot
Over the past month, the Carnarvon share price has climbed by 16%. It has also posted gains of more than 52% over the previous 12 months.
Although the company’s shares have outpaced the returna of the S&P/ASX 200 Index (ASX: XJO) over these periods, they have lagged the index on a year-to-date basis, dipping 3.33% since the start of 2021.
At the current share price of 29 cents, Carnarvon has a market capitalisation of $454 million. The share price is off its 52-week high of 34 cents but is aloft its 52-week low of 18 cents.
The post Carnarvon (ASX:CVN) share price jumps following renewables venture appeared first on The Motley Fool Australia.
Should you invest $1,000 in Carnarvon right now?
Before you consider Carnarvon, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Carnarvon wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of May 24th 2021
More reading
- 3 high-yielding ASX dividend shares
- Suncorp (ASX:SUN) share price bucks market downtrend on ~$84m divestment
- Blazing it? How the top ASX cannabis shares performed in FY21
- Medibank Private (ASX:MPL) share price sets new 52-week high today
- Why Bigtincan, Oil Search, Opthea, & Xref shares are racing higher
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3hwsZZW
Leave a Reply