Wesfarmers’ subsidiary Coregas has entered an agreement that will help decarbonise NSW’s transport sector.
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The Wesfarmers Ltd (ASX: WES) share price is falling in early trade amid news of a green hydrogen agreement.
Right now, the Wesfarmers share price is $63.68, 0.42% lower than its previous close.
Let’s take a closer look at today’s news.
Green hydrogen deal
The Wesfarmers share price is down amid news of the agreement between gas producer and distributor Coregas and energy infrastructure company Jemena.
Under the agreement, Jemena’s green hydrogen will be available to transport and industry customers by early 2022.
Coregas’ executive general manager Alan Watkins commented on the deal:
Transforming the transport sector is a critical piece of the [decarbonisation] puzzle, and we are delighted to partner with Jemena to make renewably generated green hydrogen available to the transport industry in New South Wales.
Coregas has also recently ordered Australia’s first hydrogen-powered trucks. The trucks will be put to work at the company’s NSW hydrogen production facility. Coregas also plans to build the country’s first commercial hydrogen refuelling station at the facility. Watkins commented on Coregas’ hydrogen-powered trucks, saying:
Coregas is working hard to apply our expertise in hydrogen distribution, compression and storage to Australia’s transition to a hydrogen economy.
While the news might not be having a huge effect on the Wesfarmers share price, it promises to boost the decarbonisation of the transport sector.
Transport NSW notes hydrogen-powered heavy-duty vehicles are needed for the transport industry to reach its goal of net-zero emissions by 2050.
Jemena’s general manager for renewable gas Gabrielle Sycamore also commented on hydrogen’s role in decarbonising the industry, saying:
We know that green hydrogen has the immediate potential to become a viable zero emission alternative to many petroleum-based fossil fuels currently used by industries such as transport and remote power generation.
Wesfarmers share price snapshot
The Wesfarmers share price has been performing well lately.
It has gained 26% since the start of 2021. It is also almost 39% higher than it was this time last year.
The company has a market capitalisation of around $72.5 billion, with approximately 1.1 billion shares outstanding.
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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 owns shares of and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.