ASX-listed Genesis Energy is planning to allocate profits from the Kupe gas field to fund a $1.1 billion initiative aimed at constructing new renewable generation and large-scale battery storage by 2030.
Under the Gen35 strategy reset, investments will focus on solar, grid-scale battery storage, and wind projects, targeting growth in Genesis’ renewable portfolio to approximately 8,300 GWh, a 160 per cent surge from its current 3,200 GWh.
Genesis aims to achieve 95 per cent renewable generation by 2035, aligning with New Zealand’s overall generation.
CEO Malcolm Johns emphasised electrifying the economy as a vital step towards achieving net zero by 2050, with Genesis playing a key role in accelerating electrification and optimising existing assets.
“New Zealand needs to move from 40% of energy drawn from electricity today to more than 70% by 2050. That means electrifying our homes and businesses much faster than we are currently,” Johns noted.
He continued, “On the demand side, we will be focused on partnering with our customers to accelerate electrifying how they live, work and move. On the supply side, this includes optimising existing generation assets to take them deeper into the transition, developing more renewables and investing in grid-scale firming and flexible generation.”
The company plans to secure four solar sites, invest in grid-scale batteries, and explore offshore wind options from the Kupe field.
The Gen35 strategy forecasts substantial earnings growth, with EBITDAF projected at around $500 million in FY25, reaching mid-high $500 million between FY26 and FY28.
The strategy underscored a shift from offtake agreements to a diversified portfolio of development options, including PPA’s, JV’s, and direct asset building.
The board has updated the dividend policy to allocate free cash flow from Kupe to renewables development, guiding total FY24 dividends at 14.0 cents per share.
Genesis will maintain dividends in real terms and aim for growth where appropriate. FY24 EBITDAF guidance remains at $430 million, subject to various conditions.
