The CEO of Macquarie Group Ltd (ASX: MQG) has said that green hydrogen is “part of the solution” to solving the problem of emissions and climate change.
Macquarie is one of the larger investors in green investments with its Green Investment Group (GIG).
There are a number of different ways that emissions can be reduced.
After talking with her teenage children, Macquarie Boss Shemara Wikramanayake acknowledged that her generation are accountable to the younger generation who can only help with awareness and start fixing the problems, according to reporting by The Australian.
She was quoted as saying:
And what our generation has to do is not carry on saying ‘Oh there’s a problem’…we have to get on with the solution.
Macquarie now has 300 renewable energy projects around the world. This is having a growing presence on Macquarie’s earnings and balance sheet, which could mean a bigger influence on the Macquarie share price.
Green hydrogen
Green hydrogen is hailed as one of the main ways that the world can decarbonise. Renewable energy and batteries are one part of the strategy. But there are also some areas and industries that are harder to decarbonise like heavy industry.
Hydrogen could be a key fuel. One of the main ways to make emission-free hydrogen is to split hydrogen from water using an electrolyser and renewable energy.
Ms Wikramanayake said that both ‘blue’ and green hydrogen may be required during the energy transition, according to reporting by The Australian. She said:
Each jurisdiction will have to, depending on its economic drivers, determine which is best
Frankly, blue hydrogen in the early stages will probably become cost competitive sooner than green…for blue hydrogen, there’s existing infrastructure that you can actually use already.
Ultimately it’s not a choice, I think we have to run both in parallel.
Meanwhile, Andrew Forrest and Fortescue Metals Group Limited (ASX: FMG) are heavily pursuing green hydrogen. Mr Forrest says that blue hydrogen and carbon capture are not effective enough at reducing emissions.
Macquarie is reportedly working with BP, the oil giant, to conduct feasibility studies on creating green hydrogen hubs for both domestic and exporting opportunities.
What else is Macquarie working on?
The Australian also reported that Macquarie is also working on the feasibility of the first batch of offshore wind projects on Australia’s coastline.
The global investment bank is working on a 1GW offshore wind project off Victoria’s Bass Coast and perhaps others. These are being supported by the Victorian government. Ms Wikramanayake thinks offshore wind will get traction, who said:
It’s a new technology for Australia, offshore wind, but internationally it’s really well established. It’s proven to be clean and cost competitive etc, so we’re hoping we can bring offshore wind into the mix of renewable sources here for Australia’s transition.
Macquarie share price snapshot
Whilst the Macquarie share price has fallen 14% since the start of 2022, it’s up around 25% over the last 12 months.
The post ‘We are accountable’: Macquarie (ASX:MQG) weighs in on the future of green hydrogen appeared first on The Motley Fool Australia.
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More reading
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- Macquarie (ASX:MQG) shares have rallied 34% in a year. Here’s why this fundie says there’s more to come
- Why are ASX 200 bank shares getting so much love today?
- 3 of the best results on the ASX 200 last week
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Motley Fool contributor Tristan Harrison owns Fortescue Metals Group Limited. 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 recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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