The Origin Energy Ltd (ASX: ORG) share price gained 4% today after the company released news of a green ammonia partnership.
Origin has partnered with Mitsui O.S.K. Lines (MOL). The two companies plan to look into creating a green ammonia supply chain in Australia.
The Origin Energy share price finished today trading at $4.42.
Let’s take a closer look at Origin Energy’s latest venture.
Is this the green future?
The Origin share price had a great day after the energy company announced it’s looking into creating green ammonia.
Ammonia can be used as a renewable energy. It’s often called ‘green’ when it’s produced using renewable energy.
The companies will come up with a feasibility study outlining their plan to supply “key downstream markets” with green ammonia. They expect the feasibility study, which will look at beginning supplying green ammonia from 2026, to be completed by December.
Additionally, Origin is already undergoing a $3.2 million feasibility study looking into producing green ammonia in Bell Bay, Tasmania.
Origin’s general manager of future fuels, Tracey Boyes commented on the benefits that may come from producing ammonia in Australia:
With our abundance of renewable resources and proximity to Asian markets, Australia is in the box seat to develop a world-leading hydrogen sector…
Transport is one of the biggest opportunities globally to achieve emissions abatement through the use of green and renewable fuels such as hydrogen and ammonia.
Boyes also noted Origin is in a prime position to explore producing green ammonia, due to its experience in exporting LNG.
Origin share price snapshot
Today’s boost hasn’t been enough to get Origin back into the red on the ASX.
Right now, shares in Origin are going for 8% less than they were at the start of the year. They have also fallen 24% since this time last year.
The company has a market capitalisation of around $7.4 billion, with approximately 1.7 billion shares outstanding.
The post Origin (ASX:ORG) share price lifts following green ammonia news appeared first on The Motley Fool Australia.
Should you invest $1,000 in Origin Energy right now?
Before you consider Origin Energy, 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 Origin Energy 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
- Top brokers name 3 ASX shares to buy next week
- Origin (ASX:ORG) share price falls as climate goals put to shareholder vote
- The AGL (ASX:AGL) share price just hit its lowest point in 17 years
- Why A2 Milk, Marley Spoon, Origin, & Sezzle shares are tumbling lower
- Here are 3 heavily traded ASX 200 shares on the markets today
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 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/3yDHBhH
Leave a Reply