The Origin Energy Ltd (ASX: ORG) share price ended Wednesday’s session higher. The upward tick comes as the company announced a new collaboration on a green hydrogen project.

At close of trade today, shares in the energy supplier were changing hands at $4.69 – up 0.64%. Similarly, the S&P/ASX 200 Index (ASX: XJO) finished the day 0.66% higher.

Let’s take a closer look at today’s announcement.

Origin share price in the green

The Origin share price increased at a slightly lower rate than the general market today. That’s despite today’s news that Origin and Kawasaki Heavy Industries Ltd have signed a memorandum of understanding (MoU) with the Queensland Government-owned Port of Townsville.

The MoU covers a “300MW early export project that would produce 36,500 tonnes per annum of green liquid hydrogen using renewable energy and sustainable water”. In the statement, Origin said it expects the first liquified hydrogen exports from the port to begin in the mid-2020s.

Work will now commence on accommodating Kawasaki’s semi-commercial scale liquid hydrogen carriers at the port. As well, the statement advised the three parties are considering ways of sharing infrastructure with other users at the Port of Townsville.

What is green hydrogen?

Green hydrogen is the process that separates hydrogen molecules from water. This is achieved using a process known as electrolysis. Electrolysis is when a strong jolt of electricity (generated with solar panels) is zapped into a tank of water, separating the hydrogen molecules from the oxygen ones. The hydrogen is then liquified for export and use in power generation.

The process involves zero emissions, hence the ‘green’ moniker. Many ASX shares involved with greener energy production, such as lithium miners, have boomed over the past year as the world transitions to less reliance on fossil fuels. Shareholders will no doubt be hoping the company’s continued involvement with green hydrogen will bode well for the Origin share price.

Management commentary

Origin Future Fuels general manager Felicity Underhill said of today’s news:

Townsville is ideally placed to develop a liquid hydrogen facility due to its deep-water port, industrial-zoned land, availability of skilled workers and nearby renewable energy and sustainable water resources.

There will be significant export demand for green hydrogen coming from Asia in the 2030s and even sooner from Japan in the mid-2020s and our proximity to these markets and abundance of clean renewable resources puts Australia in pole position to be a global leader in hydrogen.

This is one of the most advanced commercial scale green liquid hydrogen projects in the world, and we and our partners are looking forward to commencing front end engineering and design (FEED) this calendar year.

Origin share price snapshot

Over the past year, the Origin share price has depreciated by almost 10% and has fallen by 1.47% since the beginning of this year. Competitor AGL Energy Ltd (ASX: AGL) has seen its value fall by 47% over the last 12 months. 

Origin Energy has a market capitalisation of $8.2 billion and, based on the current share price, offers a dividend yield of 4.8%.

More reading

• Buru Energy (ASX:BRU) share price jumps 6% on Canning Basin project
• Top brokers name 3 ASX shares to sell next week
• Top brokers name 3 ASX shares to sell today
• Why AGL, Bubs, Harvey Norman, & Openpay are tumbling lower
• 7 reasons the AGL (ASX:AGL) demerger might be bad for its share price

Motley Fool contributor Marc Sidarous 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.

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The S&P/ASX 200 Index (ASX: XJO) went above 7,000 points today, rising by 0.66% to 7,023 points.

Here are some of the main highlights from the ASX:

Resolute Mining Limited (ASX: RSG)

The strongest performer within the ASX 200 today was the share price of Resolute Mining after making an announcement regarding the Bibiani mining lease. It went up by around 15%.

Ghana’s Minister for Lands and Natural Resources, Samuel Jinapor, notified the company that the mining lease for the Bibiani Gold Mine has been restored.

He made this decision having regard to Ghana’s standing as the largest gold producer in Africa and among the top seven producers in the world, and the need to maintain investor confidence globally and in particular maintain Ghana’s reputation as the preferred destination for mining investment in Africa.

However, Resolute Mining must agree to a number of conditions for the mining lease to be restored.

The miner noted that one of the things the Ghanaian government said was that it objects to the purported sale or transfer to Chifeng and the creation of any interest in the mine to Chifeng or any third party will be deemed invalid without the express prior approval of the government.

Resolute said that it intends to comply with the conditions imposed by the Minister.

The interim CEO of Resolute Mining, Mr Stuart Gale, said:

We are very pleased to have come back to a quick and amicable resolution which provides clarity and confirmation of Mensin Gold Bibiani Limited (MGBL)’s mining lease at the Bibiani Gold Mine. I would like to thank the Minister for his leadership and co-operation on this matter and we look forward to working with him and the Minerals Commission to identify a development option at Bibiani which sees the mine resuming production as quickly as possible for the benefit of all stakeholders.

Vitalharvest Freehold Trust (ASX: VTH)

The Vitalharvest share price went up again today as the bidding war to buy it continued.

After the latest proposal from Roc to buy the units of Vitalharvest at $1.16 per share, or the assets for $329.6 million, Macquarie Group Ltd’s (ASX: MQG) Agricultural Funds Management (as trustee of the Macquarie Agriculture Fund – Crop Australia 2) decided to increase its offer from $1.12 per unit to $1.16 per unit, or the assets for $329.6 million.

The board will now yet again assess whether the Macquarie offer is the same or better than the improved Roc offer.

Galaxy Resources Limited (ASX: GXY)

The Galaxy Resources share price rose 8.3% today after giving a Sal de Vida resource and reserve update.

It has carried out an assessment of hydrogeological data from the drilling of two production wells leads, which has resulted in an increase in the resources and reserves.

The lithium miner announced a revised brine resource of 6.2 million tonnes of lithium carbonate equivalent (LCE), a 27% increase from the prior estimate.

Galaxy Resources said the revised reserve estimate was 1.3 million tonnes of recoverable LCE, a 13% increase.

The materials business said that higher grade brine was recovered in both wells.

The company said that production drilling will continue to test the aquifer at depth and a further update to the resource and reserve is expected in the third quarter of 2021.

More reading

• Could the Galaxy (ASX:GXY) share price be next to raise capital after Zip (ASX:Z1P)?
• Why the Vitalharvest (ASX:VTH) share price is up 21% in 2021
• 3 latest ASX shares that top brokers have upgraded to “buy” today
• Why BrainChip, Dubber, Galaxy, & Resolute shares are charging higher
• This could be boosting the Kogan (ASX:KGN) share price today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and 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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The Cash Converters International Ltd (ASX: CCV) share price has laid flat for most of the day. The lack of movement follows the second-hand retailer and personal loan provider releasing its latest trading update for the third quarter. Coincidentally, Wisr Ltd (ASX: WZR) released its own quarterly update this morning which seems to have outshined Cash Converters results.

At the time of writing, the Cash Converters share price is 4.44% higher at 24 cents a share. Meanwhile, the Wisr share price is 6.7% higher to 24 cents a share. 

Cash Converters third-quarter update

Continued momentum in the rebounding economy has been music to the lender’s ears. Improved consumer confidence typically correlates with an increase in taking on various forms of debt. Whether that’s home loans, vehicles, or personal loans. This is evident in Cashies’ latest update, with Cash Converters managing director, Sam Budiselik commenting:

As observed in our H1 FY 2021 results our core business segments have continued to recover in-line with Australia’s ongoing economic recovery. Our secured vehicle finance and pawnbroking products, alongside our unsecured personal loan products, continue to meet the credit demand among the millions of Australians excluded from the mainstream financial system. Meanwhile, our unique secondhand retail offering continues to appeal to value and environmentally conscious consumers.

The company reported momentum across all loan products, except for its vehicle financing business. This was due to an intentional decision to reposition the vehicle financing business. The impact on loan originations is expected to be short-lived. Following a refresh, the vehicle financing unit began recovering towards the end of the quarter. 

On a positive note, the combined loan book experienced an 8% lift from the previous quarter. Medium amount credit contracts (MACCs) contributed substantially to the company’s loan book growth, with a 26% increase to $38 million in value. Additionally, small amount credit contracts (SACCs) grew a further 10% to $63.1 million. Cash Converters noted a deliberate shift away from SACCs being its biggest segment of loans, at 39% of the entire loan book. This is due to the ongoing review of legislation surrounding SACC. As a result, the company plans to continue decreasing its reliance on the SACC book. 

Wisr steals the share price excitement

The lack of movement in Cash Converters could be attributed to Wisr releasing more impressive growth figures. The non-bank lender expanded its loan book significantly in the last quarter, increasing 17% to a total of $488.3 million. This compares to Cashies’ increase of 8% to a total loan book value of $163.1 million. 

In addition, Wisr really pushed the point that its grown loan originations for 19 quarters consecutively. Comparatively, Cash Converters has been on a bumpier ride. The company’s loan book actually fell in value for the prior three quarters. That’s right, Cash Converters broke a losing streak today — while Wisr extended a lengthy winning streak. 

A bit of extra salt in the wound for Cash Converters… While its vehicle financing business is in decline, Wisr’s vehicle product delivered growth ahead of expectations. In fact, Wisr added $21.9 million in secured vehicle loans, while Cashies lost $2.9 million. 

Comparing performance

Both of these non-bank lenders have delivered outperformance compared to the S&P/ASX 200 Index (ASX: XJO) over the past year. However, Wisr takes the trophy — adding 81.5% to the Wisr share price in that timeframe. Lagging behind, Cash Converters delivered a 53.3% share price increase in the past 12 months. 

More reading

• Why the Wisr (ASX:WZR) share price is on the move
• Why the Wisr (ASX:WZR) share price is on watch
• Small and mid cap ASX shares going ex-dividend this week
• Wisr (ASX:WZR) share price jumps on strong trading update

Motley Fool contributor Mitchell Lawler 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.

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If you want to build a balanced portfolio, having a few blue chip ASX shares would be a smart move.

But with so many to choose from, it can be hard to decide which ones to buy. To narrow things down for you, I have picked out two ASX blue chip shares that are highly rated:

Goodman Group (ASX: GMG)

Goodman Group is a leading integrated commercial and industrial property company with operations across the world. Among its portfolio are warehouses, large scale logistics facilities, and business and office parks. 

At the last count, Goodman had $51.8 billion of total assets under management globally, 369 properties under management, and over 1,600 customers. Among the latter are the likes of Amazon, Coles Group Ltd (ASX: COL), DHL, Showpo, and Walmart.

Pleasingly, it has been growing at a strong rate over the last decade and even during the pandemic. This is thanks to its focus on investing in and developing high quality industrial properties in strategic locations.

It chooses locations that are close to large urban populations and in and around major gateway cities globally. This is where demand is strong and transformational changes are driving significant opportunities. This strategy has been delivering consistently strong returns, much to delight of shareholders.

Morgan Stanley appears confident the positive form can continue. It has an overweight rating and $20.90 price target on its shares.

Telstra Corporation Ltd (ASX: TLS)

A second blue chip ASX share to look at is Telstra. It could be a blue chip to buy thanks to its attractive valuation and the positive progress it is making with its T22 strategy.

Telstra’s T22 strategy is creating a much leaner business and one which is expected to return to growth in the not so distant future. In fact, the company’s CEO, Andy Penn, is targeting mid to high single digit operating earnings growth next year.

In February he commented: “I am confident the many initiatives we have taken under our T22 program, particularly in simplifying the business and the digitisation program, will further improve customer experience. To get the real benefits from all the effort we’ve already made, Telstra needs to be bold. I’ve set an aspiration for mid to high single-digit growth in underlying EBITDA in FY22 and $7.5 to $8.5 billion of underlying EBITDA in FY23. I am confident we can deliver this if we remain focused.”

Another positive is that Telstra is looking to unlock value by monetising assets and splitting into three separate entities.

Ord Minnett is a fan of the plan and believes the Telstra share price is in the buy zone. It currently has a buy rating and $4.05 price target on its shares.

More reading

• 4 reliable ASX dividend shares to buy for income
• Why focus could soon shift to dividend upgrades for the Telstra (ASX:TLS) share price
• Telstra (ASX:TLS) share price hits new 8-month high
• How this ASX ETF is battling the biggest threat to Australian business growth
• ASX 200 Weekly Wrap: ASX sees 7,000 points once more

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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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The Michael Hill International Ltd (ASX: MHJ) share price is having a fantastic day today. Michael Hill shares are, at the time of writing, up 9.86% to 78 cents a share after closing at 71 cents yesterday and opening at 73 cents a share this morning.

Today’s move is the latest in what has been a very good month for Michael Hill shareholders so far. On top of a very good 2021 and an outstanding 12 months. Michael Hill is now up more than 11% year to date and more than 23% since the start of April. The shares are also up a mouth-watering 117% over the past 12 months. In saying that, Michael Hill is still a ways off of the $1.71 per share levels we were seeing back in 2016, so it hasn’t been an unbridled success story for long term investors.

So who is Michael Hill International? And why are the shares rocketing today?

When diamonds are a shareholders’ best friend

Michael Hill International is a chain of jewellers. The company owns a string of 289 jewellery stores across Australia, New Zealand and Canada. The company was started by the eponymous Michael Hill in New Zealand back in 1979. It listed on the New Zealand Stock Exchange in 1987, and the ASX in 2016. The company expanded into the Australian market in 1987, and the Canadian market in 2002.

Michael Hill was a company that managed to weather the COVID storm rather well last year. In its most recent earnings update back in February, the company reported an 82.1% bump in net profits after tax for the 6 months to 27 December 2020. That was fuelled by a 67% increase in earnings before interest and tax (EBIT), and a 6.3% rise in same-store sales growth.

All of that came despite the jeweller losing 3,709 store trading days as a result of lockdowns, which Michael Hill estimated cost the company $23 million in revenues. 

Why are Michael Hill shares glinting today?

As we touched on earlier, Michael Hill shares are having quite the day today. Normally, a rise of near-10% is sparked by some big news or announcement from the company. But alas, today we have had no such news. The company’s last major announcement was back on 9 April. And that was just some routine paperwork.

In fact, there is no obvious reason at all why Michael Hill shares are rocketing. There are two possible reasons we can speculate on today though. The first is that a share market broker or other investing firm has rated Michael Hill as a buy or upgraded their outlook on the company. The second is that a major institutional investor has taken out a position in Michael Hill shares. Seeing as this company has a market capitalisation of just over $300 million on recent pricing, it wouldn’t take much for a large purchase of stock to push the company’s share price up. 

ASX trading data shows a significant uptick in Michael Hill share trading today. Almost 526,000 shares have swapped hands today, significantly higher than the 5-day average of ~140,000, let alone the 88,000 that traded on Monday. 

Whatever the cause, it has certainly been a good day for Michael Hill International shareholders today.

More reading

• What’s keeping ASX 200 investors awake at night?
• 2 outstanding ASX growth shares to buy now
• Could the Galaxy (ASX:GXY) share price be next to raise capital after Zip (ASX:Z1P)?
• Why the Fortescue (ASX:FMG) share price is slipping today
• Why the Vitalharvest (ASX:VTH) share price is up 21% in 2021

Motley Fool contributor Sebastian Bowen 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.

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If you have money invested in S&P/ASX 200 Index (ASX: XJO) shares and you’re losing sleep at night, you may want to alter the risk profile of your portfolio.

That’s according to an age-old investor adage, which says you should be comfortable with the risks you’re taking with your money. If you’re tossing and turning at night thinking about your ASX 200 shares, it means you may have too much — or too little — invested in the market.

The solution for you and me is pretty simple. A few minutes on your online trading account or a quick call to your broker and you can adjust your share market exposure to your comfort level.

But spare a thought for the world’s fund managers. Men and women with many millions, if not billions, of other people’s dollars in their hands. Money that they’ve been tasked with putting to good work.

What’s keeping them awake at night?

For an answer to that, we turn to Bank of America Corp’s latest fund manager survey.

COVID-19 booted to fourth place

The Bank of America survey polled 200 fund managers with more than $700 billion of combined assets under management for its monthly survey in April.

The survey revealed that the global pandemic is no longer the fund manager’s number 1 bogeyman.

With the rollout of vaccines underway, the fund managers’ top concern is the so-called taper tantrum. That’s where the US Federal Reserve and other leading global central banks scale back their quantitative easing (QE) programs sooner and more aggressively than they’ve signalled. This could see share investors rushing for the exits as it would lead to rising interest rates.

Second on the list of fund managers’ concerns is inflation. Should inflation return with more vigour than the central bankers have been assuring us it will, this could force the central banks’ hands. To keep inflation in check they may have little choice but to raise interest rates. Again, this would raise the cost of money and make assets outside the share markets (like bonds and cash deposits) relatively more attractive.

Higher tax concerns also beat out COVID-19 for what’s keeping the polled fund managers awake at night. Though tax hikes may be some ways off in Australia, newly elected US President Joe Biden has already indicated his intentions to unwind some of former President Donald Trump’s corporate tax cuts.

Whether corporate or income or sales, higher taxes mean less money in the private sector and tend, at least in the medium term, to present headwinds for share prices.

ASX 200 retail investors

Having admittedly not conducted any polls among retail investors on the ASX 200, I’ll go out on a limb and say the same 4 concerns listed by the fund managers above are likely on your list as well. If not in the same order.

But unlike the fund managers, we have the option to be far more…or less…nimble.

As a retail investor, you don’t have to meet any benchmarks, except those you set for yourself.

So let the fund managers fret about their top concerns. If you’re finding yourself anxious about your allocation to ASX 200 shares then adjust your exposure as you feel best. And enjoy a good night’s rest.

Happy investing.

More reading

• 2 outstanding ASX growth shares to buy now
• Could the Galaxy (ASX:GXY) share price be next to raise capital after Zip (ASX:Z1P)?
• Why the Fortescue (ASX:FMG) share price is slipping today
• Why the Vitalharvest (ASX:VTH) share price is up 21% in 2021
• Is it time to jump on the Westpac (ASX:WBC) share price?

Motley Fool contributor Bernd Struben 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.

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If you’re a growth investor then you’re in luck. The Australian share market is home to a number of quality shares that have the potential to grow strongly in the future.

Two top ASX growth shares that have been tipped as buys are listed below. Here’s why they are highly rated:

IDP Education Ltd (ASX: IEL)

The first ASX growth share to look at is IDP Education. It is a leading provider of international student placement and English language testing services.

IDP Education has been impacted greatly by a significant reduction in demand for its services because of the pandemic. This led to the company reporting a 29% decline in revenue to $269 million and a 46% decline in EBIT to $47.3 million during the first half.

While this is disappointing on paper, it is worth noting that trading conditions improved greatly as the half progressed. So much so, in December, testing volumes were broadly in line with those experienced in the final month of 2019 prior to the pandemic.

This bodes well for the second half, particularly given the roll out of vaccines across the world. Furthermore, due to the company’s strong financial position, it is well-placed to win a greater share of the market when the pandemic passes.

Morgan Stanley is a fan of the company. Last month it put an overweight rating and $30.00 price target on the company’s shares. The broker is expecting its earnings to bounce back strongly in FY 2022.

Zip Co Ltd (ASX: Z1P)

Another ASX growth share to consider buying is Zip. This leading buy now pay later (BNPL) provider has been growing at a rapid rate over the last few years.

This has been driven by the ever-increasing popularity of the BNPL payment method with consumers and merchants, the decline in credit card use, and its international expansion. The latter was underpinned by the incredibly successful acquisition of Quadpay in the United States.

While the ANZ business is still growing strongly, Quadpay is the real growth engine right now. And thanks to its massive opportunity in the United States, it looks well-placed to continue driving its growth for a long time to come. So much so, there have been suggestions that Zip should change its name to Quadpay now.

One broker that is positive on the company is Citi. In response to its stellar third quarter update this week, the broker upgraded its shares to a buy rating with an $11.30 price target.

More reading

• Could the Galaxy (ASX:GXY) share price be next to raise capital after Zip (ASX:Z1P)?
• Why the Zip (ASX:Z1P) share price is in a trading halt
• 3 latest ASX shares that top brokers have upgraded to “buy” today
• Why BWX, Fortescue, Webjet, & Zip shares are dropping
• How does Afterpay’s (ASX:APT) growth rates compare to peers?

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Idp Education Pty Ltd and ZIPCOLTD FPO. 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.

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The surge in the Galaxy Resources Limited (ASX: GXY) share price to a three-year high should prompt investors to ask if the miner could be close to pulling the trigger on a capital raising.

This is the perfect time to rattle the can as the S&P/ASX 200 Index (Index:^AXJO) closes in on record high.

Just ask our friends at Zip Co Ltd (ASX: Z1P), which went into a trading halt to prepare for a fresh capital injection. Never mind that Zip undertook a placement and share purchase plan only in December last year.

You can’t blame management teams to strike while the iron’s hot!

Why Galaxy Resources could be mulling a cap raise

That’s why I am half expecting Galaxy Resources to tap shareholders on the shoulder, particularly as the high-flying lithium miner outlined ambitious plans for its Sal de Vida project.

Galaxy Resources is looking increasingly unlikely to sell a stake in the project, reported Peter Ker from the Australian Financial Review.

The recent surge in the lithium price is giving management courage to go alone on the first state of the US$153 million ($200 million) project.

This first stage should be enough for Sal de Vida to produce 10,700 tonnes of lithium carbonate a year. Around 80% of this output is expected to be battery grade.

Stars aligned for a placement and SPP

In case you were asleep, lithium is the flavour of the month. Several experts are predicting a looming supply shortfall on accelerating sales of electric vehicles.

This could not be a more perfect time for Galaxy Resources to raise cash. It would almost be like shooting fish in a barrel.

One also cannot underestimate the miner’s need for cash if it wants to accelerate the second and third phases of Sal de Vida.

Growing capex requirements

The expansion will more than triple the project’s output at a cost of another US$313 million. It’s perfectly logical to want to increase production as quickly as possible to capitalise on high commodity prices.

You can bet other lithium miners are desperately looking for ways to boost production. Galaxy Resources won’t want to be a late comer to the party.

The miner’s chief executive Simon Hay is reported as saying he would prefer to sell a stake in Sal de Vida in the second or third stages of the project. That’s when Galaxy Resources will need US$244 million for its James Bay project in Canada.

Foolish takeaway

But I am not discounting Galaxy Resources holding on to all of Sal de Vida if it can raise sufficient cash from shareholders.

The last time Galaxy Resources raised capital was in November last year when it got a circa $160 million cash injection.

Never mind the miner’s repeated recent claims of having a strong balance sheet. I have yet to meet a CEO who would turn down an easy cap raise.

More reading

• Why the Zip (ASX:Z1P) share price is in a trading halt
• 3 latest ASX shares that top brokers have upgraded to “buy” today
• Why BWX, Fortescue, Webjet, & Zip shares are dropping
• How does Afterpay’s (ASX:APT) growth rates compare to peers?
• Why BrainChip, Dubber, Galaxy, & Resolute shares are charging higher

Brendon Lau owns shares of Galaxy Resources Limited. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. 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.

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The Fortescue Metals Group Limited (ASX: FMG) share price is falling slightly today amid news that the company met with Jordanian government officials to discuss hydrogen energy, with few other details revealed.

The Fortescue share price is down 0.54% to $20.25 today.

Fortescue is one of Australia’s largest miners, involved primarily in the exploration, development, production, processing and sale of iron ore. Unlike Australia’s other large mining companies, however, it has a net-zero emissions target by 2030.

Fortescue’s hydrogen shift 

In recent years, Fortescue chair Andrew Forrest has been one of Australia’s most vocal proponents of shifting towards renewable energy. The company recently announced plans to become carbon neutral by 2030.

Fortescue is planning to shift towards producing hydrogen energy and ammonia, which was the stated purpose of its meeting with Jordanian officials.

It’s been a busy few months in this space for the Australian mining giant. Fortescue recently signed an agreement with South Korean steel manufacturer Posco to collaborate on a hydrogen-production partnership.

It signed similar deals with South Korea’s Hyundai and the Commonwealth Scientific and Industrial Research Organization last year.

Fortescue, hydrogen and the Middle East

A delegation from Fortescue met with Jordanian Planning Minister Nasser Shraideh to explore and discuss investment opportunities. Forrest has recently returned from a world tour scouting potential hydrogen-producing destinations.

Shraideh reportedly gave a presentation on Jordan’s investment environment and spoke of the government’s clean energy plans, suggesting the Middle Eastern country is keen on attracting Fortescue’s investment. Australia’s Jordanian ambassador also attended the meeting.

The Middle East appears to be emerging as the go-to destination for hydrogen energy producers, with the world’s largest hydrogen plant recently opened in Saudi Arabia.

The plant is being opened near the Jordanian border in Neom, a planned new mega-city built around the burgeoning renewable energy industry.

Neom, in many ways, is targeted to be the new centre of world hydrogen production, and the Jordanian government may be keen to profit and replicate from the emerging industries on their doorstep.

But Jordan is already developing a highly effective renewable energy industry of its own. Jordan is scheduled to raise renewable electricity production to 2,400 megawatts this year, accounting for approximately 22% of the country’s total requirements.

Fortescue share price snapshot

The Fortescue share price has fallen 18% since the beginning of 2021. Despite these losses, it’s still up more than 74% over the past 12 months, largely due to high iron-ore prices.

More reading

• Why BWX, Fortescue, Webjet, & Zip shares are dropping
• Fortescue (ASX:FMG) share price tumbles on broker downgrade
• Is the Fortescue (ASX:FMG) share price an attractive opportunity?
• Why are the big ASX mining share prices slipping today?
• ASX 200 Weekly Wrap: ASX sees 7,000 points once more

Motley Fool contributor Lucas Radbourne-Pugh 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.

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The Vitalharvest Freehold Trust (ASX: VTH) share price is shooting like a beanstalk in 2021. Since the first trading day of the year, shares in the real estate investment trust (REIT) have appreciated by 21.4%.

Presently, its shares are swapping hands for $1.19 each – up 0.42% on yesterday’s close. By comparison, the All Ordinaries Index (ASX: XAO) is up by around 4.7% in 2021 and 0.72% today. 

Let’s take a closer look at what’s driving the Vitalharvest share price higher.

Tug-of-war pushes Vitalharvest share price higher

So, what’s affecting Vitalharvest shares? A bidding war for the company, that’s what. Back in November 2020, news broke that Macquarie Group Ltd (ASX: MQG) subsidiary Macquarie Infrastructure and Real Assets (MIRA) proposed to buy all shares in the trust for $1.00 per unit. At the time, this represented a 27% premium on the last closing price.

Since then, private equity firm Roc has entered the fray. Both parties have subsequently been submitting ever-increasing bids for the company, sending the Vitalharvest share price higher.

Roc’s most recent proposal improved its offer for the company from $1.12 to $1.16 per share. On top, Roc is willing to pay a 2.5 cent dividend on each share for “rent received to 31 December 2020.”

Today, MIRA fired back. The company matched Roc’s offer to buy shares for $1.16 per unit and pay a 2.5 cent dividend on each share. Responding to the offer, Vitalharvest said:

[Vitalharvest] is assessing whether [MIRA]’s further revised proposal would, or would be likely to, provide an equivalent or superior outcome for [Vitalharvest] unitholders than the Modified Roc Offer.

[Vitalharvest] will update the market as soon as possible.

It should be noted that today’s Vitalharvest share price is half a cent above the offer from both companies, when factoring in the dividend payment.

What is Vitalharvest?

Vitalharvest owns one of the largest aggregations of berry and citrus farms in Australia. These are located in rural and regional New South Wales, South Australia and Tasmania and are leased to Costa Group Holdings Ltd (ASX: CGC).

In further good news for the company, a Rabobank report released last month predicted agricultural commodity prices will continue heading north.   

Vitalharvest share price snapshot

Over the last 12 months, the Vitalharvest share price has appreciated by 72.5%. As outlined above, most of those gains have occurred in the last 6 months. Vitalharvest’s value has appreciated 52.6% since mid-October last year.

Based on the current share price, the company has a market capitalisation of $219.2 million.

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Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO and Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Vitalharvest (ASX:VTH) share price is up 21% in 2021 appeared first on The Motley Fool Australia.

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