Ampol (ASX:ALD) share price falls on $7m funding for EV fast charging

Ampol has received $7 million to put towards building electric vehicle fast-charging stations across Australia
The post Ampol (ASX:ALD) share price falls on $7m funding for EV fast charging appeared first on The Motley Fool Australia. –

The Ampol Ltd (ASX: ALD) share price is in the red today. This comes after the fuel retailer announced it has partnered with the Australian Renewable Energy Agency (ARENA) to fund a national electric vehicle fast-charging network.

The arrangement will see fast-charging stations installed at more than 100 Ampol service stations all over Australia.

Right now, the Ampol share price is $28.43, 0.18% lower than its previous close.

Let’s take a closer look at today’s news from Ampol.

Fast charging coming to Ampol

The Ampol share price is down today after the company announced electric vehicle owners will soon be able to charge their cars quickly with Ampol.

As part of the Ampol Addressing Blackspots Fast Charging project, Ampol will be installing fast-charging bays at service stations in the Greater Sydney, Melbourne, Perth, and Brisbane regions.

Newcastle, Wollongong, Geelong, the Sunshine Coast, and the Gold Coast will also see fast-charging bays pop up in the near future.

Each station to receive fast charging will have at least 2 bays available to customers. The charging stations will use renewable energy or electricity covered by green certificates.

ARENA’s Future Fuel Fund is putting $7 million towards the electrified additions to Ampol’s stations.

According to ARENA, the total cost of Ampol’s fast-charging bays will be $26.81 million.

Ampol believes electricity will be the “primary mobility energy source by 2050”.

The news follows the announcement of Ampol’s Future Energy and Decarbonisation Strategy. The strategy, which was made public in May, outlines the company’s goal to reach net zero emissions by 2040.

As part of the strategy, Ampol partnered with clean energy producers and tech giant Tesla Inc to make use of hydrogen energy and solar power. The Ampol share price gained 4.2% over the three trading days following the release of its strategy.

Work to construct Ampol’s fast-charging network will begin before the end of the year.

Ampol is one of 5 applicants to receive a share of ARENA’s Future Fuel Fund’s first round of funding. Round 1 saw $24.55 million handed out by ARENA today.

Combined, the 5 applicants will use the funds to build 403 new fast-charging stations in 8 Australian regions.

Commentary from management

Ampol’s CEO and managing director Matt Halliday commented on today’s news that might be affecting the Ampol share price. He said:

E-mobility infrastructure is a central pillar to capturing our existing customer base through the energy transition, as we look to expand our role in electricity to make the ease of the current liquid fuels era translate into the future (battery electric vehicle) environment. This includes exploring ‘at-forecourt’, ‘at-home’ and ‘at-destination’ solutions.

Ampol share price snapshot

Ampol is in the green on the ASX by the skin of its teeth. Right now, the Ampol share price is 0.74% higher than it was at the start of the year. It has also gained 4.44% since this time last year.

The company has a market capitalisation of around $6.7 billion, with approximately 238 million shares outstanding.

The post Ampol (ASX:ALD) share price falls on $7m funding for EV fast charging appeared first on The Motley Fool Australia.

Should you invest $1,000 in Ampol right now?

Before you consider Ampol, 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 Ampol 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

Why the Tesla share price jumped 5% on Thursday

Here are the US shares ASX investors were buying last week

Why Tesla stock fell on Tuesday

Tesla (NASDAQ:TSLA) share price climbs on record revenue and profits
Why Tesla stock bounced ahead of earnings

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. owns shares of and has recommended Tesla. 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!