We are only three days into 2023 and the expectations of a recession this year are mounting. A tougher economic environment could mean even more pain for ASX shares after an already brutal 12-month stint for investor portfolios last year.

How dire could it really get in 2023? According to the managing director at the International Monetary Fund (IMF), Kristalina Georgieva, quite dire indeed. In a recent interview, Georgieva revealed that the IMF expects one-third of the world economy to be in recession this year.

I'm not concerned about what a company's share price does in the short term. However, a recession can have real impacts on a portfolio. The main concerns for investors, in my opinion, are:

• Potential for companies to go bankrupt, resulting in permanent loss
• Exiting long-term investment strategy due to the psychological toll created by volatility
• Concentrating investments in long-term underperformers

Here's how I plan to recession-proof my ASX share portfolio this year and hopefully not succumb to the above pitfalls.

Short rope for debt dependents

The most at-risk ASX shares of bankruptcy in a recession are those that are unprofitable and rely on debt to fund operations and/or development.

The possibility of interest rates sustaining between 2% to 3% and a slowing economy could make funding harder to come by. If the company can't produce its own capital to continue operations, it could fall on its sword.

To try to avoid a 100% loss, I'll be quick to cut loose any such companies in my portfolio that begin to show signs of financial distress. Furthermore, I won't be deploying cash to any new investments that hold these characteristics in 2023.

One such holding I'm currently wary of is Genex Power Ltd (ASX: GNX). As of June 2022, the clean energy developer was saddled with $322 million in net debt. The company is in the process of a costly endeavour to construct a hydro project, which could put it at financial risk if costs blow out.

Smoother ride with more ASX shares

Often the greatest enemy to our investing success is ourselves. You can invest in the greatest companies in the world but if volatility gets the better of you when the market crashes, you will never enjoy the fruits of your labour — that's where diversification comes in handy.

To recession-proof my ASX portfolio against my own undoing, I plan to hold a greater variety of companies. My portfolio is heavily exposed to the tech industry with approximately a 46% weighting.

For my risk appetite, this is adequate. However, I personally want to keep this below 50% this year so that any drawdown, specifically in tech, doesn't deal too harsh a blow to my psyche.

Dodging the biggest mistake

Investing in 'safe' ASX shares probably isn't something that is usually highlighted as a possible mistake. Yet, I believe it could be one of the most detrimental traps to fall into in anticipation of, and during, a recession.

The inclination to abandon all growth investments and buy blue chips like National Australia Bank Ltd (ASX: NAB) and Telstra Group Ltd (ASX: TLS) might be tempting, but it could lead to severe underperformance long term.

These 'safe' ASX shares have underperformed the S&P/ASX 200 Index (ASX: XJO) by 18% and 42% respectively since June 2008, as shown above.

A small portion of my portfolio is held for defensive ASX shares such as Commonwealth Bank of Australia (ASX: CBA) and CSR Limited (ASX: CSR). However, I will continue to add companies with large opportunities still ahead of them.

Companies like Pro Medicus Limited (ASX: PME) and Jumbo Interactive Ltd (ASX: JIN) operate in underdeveloped and riskier markets. But the lack of market saturation means there could be much more growth in the future.

The post Here's how I plan to recession-proof my ASX share portfolio this year appeared first on The Motley Fool Australia.

The Genex Power Ltd (ASX: GNX) share price is lifting once more after a consortium of suitors, including the investment fund of Atlassian (NASDAQ: TEAM) co-founder Scott Farquhar, slapped the stock with another takeover bid.

And this one looks like it could stick. The consortium, made up of Farquhar's Skip Capital and Stonepeak Partners, has offered 25 cents per share to snap up the company. That's 2 cents higher than its previously rejected offer.

The Genex share price is surging on the news. It's up 6.82% to 23.5 cents at the time of writing, after repeatedly topping 8% throughout the day.

Let's take a closer look at the latest from the renewable generation and storage company.

Genex share price soars on upped takeover bid

It's been a long journey to get here, but Genex has finally granted Skip Capital's infrastructure fund and Stonepeak Partners due diligence.

The consortium first put forward a 23 cent per share bid, valuing the renewable energy company at $300 million, in late July.

And while the market responded with joy, sending the Genex share price 44% higher, the company wasn't impressed. Its board turned down the offer earlier this month, saying it undervalued the company.

Though, it allowed the consortium access to some due diligence information in the hopes doing so would result in a higher bid.

And lo and behold, a higher bid has materialised. The new offer represents an 85% premium on the undisturbed Genex share price and a 92% premium on its three-month volume weighted average.

It also values the company at around $346 million.

The company's board hopes the consortium follows its proposal with a binding bid after it undergoes due diligence.

If such a bid is priced at 25 cents per share or higher, Genex will recommend it to shareholders. That's as long as an independent expert agrees it's in investors' best interests and no better offer comes along.

If all goes to plan, the consortium will snap up Genex via a scheme of arrangement in the not-so-distant future.

The post Genex share price leaps 8% on revised takeover bid from Atlassian founder appeared first on The Motley Fool Australia.

The Genex Power Limited (ASX: GNX) share price closed higher on Friday as rumours circulate another bidder has taken an interest in the renewable energy company.

Genex shares finished the day at 22 cents each, up 2.33%, after hitting 22.7 cents a share earlier today. That was a jump of 5.58%.

The interest comes after the company knocked back a $300 million takeover proposal on Monday. 

Let's check the latest on Genex's takeover prospects.

A new suitor for Genex? 

As reported by The Australian, an undisclosed group is "making inquiries around the market about launching a rival bid for the business".

The group is said to be "not private equity" and a company that operates in Australia.

The speculated names include Sundance Energy Australia Ltd (ASX: SEA), Alinta Energy, and other companies with energy assets on Australia's east coast.

On Monday, Genex rejected an unsolicited acquisition attempt from a group consisting of Atlassian co-founder and co-CEO Scott Farquhar's Skip Capital and Stonepeak Partners. The bid offered 23 cents per share for the company.

Genex power's board of directors said the offer undervalued the company but it was open to a counter-offer with a revised amount.

Share price snapshot

The Genex share price is up more than 11% year to date, gaining a remarkable 85% in the last month.

Despite the recent action though, the company's share price is still 5% lower than it was this time last year.

The company has a current market capitalisation of $308 million.

The post Genex share price climbs 6% amid new takeover rumours appeared first on The Motley Fool Australia.

S&P/ASX 200 Index (ASX: XJO) energy shares look to be missing out on some potentially game-changing funding.

ASX 200 energy shares, including AGL Energy Limited (ASX: AGL) and Origin Energy Ltd (ASX: ORG), alongside smaller energy shares outside the ASX 200 like Genex Power Ltd (ASX: GNX), are all working to transition toward cleaner and eventually wholly renewable energy sources.

Net zero by 2050 comes with a hefty price tag

According to Sohel Azad, an Islamic finance expert at Deakin Business School:

Public pressure to develop large-scale, high-cost, renewable energy infrastructure is huge. Australia has a bold plan to transform its energy market. Prime Minister Anthony Albanese plans to legislate ambitious carbon reduction targets, including net-zero by 2050, and the need to strengthen energy generation capabilities has only been exacerbated by the current gas crisis.

But the costs of developing renewable energy infrastructure on a national level can be prohibitive. Which is why Azad points to the as yet untapped potential of additional international funding sources to help Australia go green.

ASX 200 energy shares missing out on 'massive untapped demand'

According to Azad, sharia-compliant Islamic bonds would likely see strong demand to support green energy projects in Australia, like large-scale battery grid storage.

The bonds, called sukuk, don't pay interest to their holders. Instead, they're classified as securities, backed by tangible assets which enable investors to garner a share of the profits (or losses) when the assets are sold or traded.

Azad says that selling sukuk on the ASX could offer investment certainty for the energy transition.

Sukuk can only be used on ethical investments, "a natural fit for funding green energy projects".

"Sukuk has already been introduced in many international markets and Australia must be quick to take advantage of the opportunities," he said.

And the opportunity appears vast, with Deakin estimating Islamic finance is almost a $3 trillion global industry.

Which could open the door to some hefty funding for ASX 200 energy shares' green projects.

"We simply don't have the public or private funds in Australia to deliver some of these ambitious projects," Azad said. "By selling sukuk on the ASX, and cross listing in other exchanges overseas, the government and corporates can attract more foreign investment in renewable energy projects."

Azad added:

There is a massive untapped demand from Islamic investors for sustainable investment opportunities like this that are sharia compliant, and Islamic finance firms are particularly interested in investing in projects that address the United Nation's Sustainable Development Goals.

The post 'Massive untapped demand': The $3 trillion opportunity ASX 200 energy shares could be missing appeared first on The Motley Fool Australia.

The Genex Power Ltd (ASX: GNX) share price is in the green after the company knocked back the $300 million takeover proposal put to it last week.

The renewable energy company's board said the 23 cents per share offer – representing a 70% premium at the time of its announcement – undervalues the company. Though, it has left the door open for a revised proposal.

The Genex share price is 21.75 cents at the time of writing. That's 1.16% higher than its previous close.

Let's take a closer look at the latest news from the ASX-listed company.

Genex share price gains despite rejected bid

The Genex share price is lifting this morning. Its gain comes amid news the company won't be granting due diligence following a $300 million takeover bid.

The unsolicited bid was put forward by a consortium made up of Atlassian co-founder and co-CEO Scott Farquhar's Skip Capital and Stonepeak Partners last week.

The company's board says it believes the bid undervalues the company and, thus, isn't in shareholders' best interests.

However, it will allow the consortium access to certain limited due diligence information. It hopes the extra information will help the party put together a revised acquisition proposal.

The Genex board also outlined reasons it believes the company has a bright future, even if it isn't offered a higher bid.

They included the company's renewable generation and storage assets, which are worth more than $1 billion.

It also noted Genex's position as the ASX's only renewable energy and storage pure play and the company's 100 megawatts of solar projects – already benefitting from higher pricing.

Finally, it noted the company's "significant" pipeline of renewable generation and storage projects.

The Genex share price surged 44% when the takeover bid was announced alongside the company's quarterly report last week.

Today's gain leaves Genex shares 7.5% higher than they were at the start of 2022. Though, they are 10% lower than this time last year.

The post No deal: Genex share price lifts as $300m takeover bid rejected appeared first on The Motley Fool Australia.

The Genex Power Ltd (ASX: GNX) share price is taking off on Monday after the company confirmed a $300 million takeover bid and released its latest quarterly update.

The Genex share price launched 51.8% on open to reach 20.5 cents. At the time of writing, it has slipped slightly to trade at 19.5 cents – representing a 44.44% gain.

Let's take a closer look at what's driving the renewable energy company's stock on Monday.

Genex share price takes off on takeover bid

It's shaping up to be a huge day for the Genex share price, which rocketed more than 50% in early morning trade.

The gains came after the company confirmed it had received a takeover bid valuing it at more than $300 million and representing a 70% premium on Friday's close.

The 23-cent per share cash bid was posted by a consortium including Atlassian co-founder and co-CEO Scott Farquhar's Skip Capital and Stonepeak Partners.

The company's board noted the acquisition proposal was unsolicited and said it "has not yet formed a view on [the bid's] merits".

The bid comes after Skip Capital snapped up a 19.99% stake in Genex's stock last week.

Genex posts record revenue and cash flow

It certainly makes for an exciting period for the company, which posted its first full year of positive cash flow this morning.  

Genex's operating cash flow for financial year 2022 came to $4 million. Its solar farms brought in record unaudited revenue of $26.1 million in that time while the company reported $8.6 million of revenue for the June quarter.

Genex benefited from strong electricity prices last quarter while construction continued at its Kidston Pumped Hydro Project and Bouldercombe Battery Project.

The company's renewable energy generation and storage portfolio is worth more than $1 billion.

The post Genex share price rockets 50% on confirmed takeover bid appeared first on The Motley Fool Australia.

Today could be a big one for the Genex Power Ltd (ASX: GNX) share price after the company received a takeover bid worth more than $300 million.

The 23 cents per share bid for the company was posted by a consortium including Atlassian co-founder and co-CEO Scott Farquhar's Skip Capital.

The Genex share price was 13.5 cents at its previous close.

Let's take a closer look at the takeover proposal announced by the company this morning.

Genex share price on watch following takeover bid

The Genex share price could be about to take off after the company confirmed a previously-speculated takeover bid on Monday. Additionally, the company released its quarterly results today.

A consortium made up of the Skip Essential Infrastructure Fund and Stonepeak Partners has placed a 23 cent per share bid for Genex, representing a total valuation of more than $300 million and a 70% premium on the company's previous close.

Skip Capital – headed by Farquhar's wife, former Hastings Funds Management director Kim Jackson – snapped up a 19.99% interest in the renewable energy company's stock last week.

Genex's portfolio of renewable energy generation and storage projects is worth more than $1 billion.

Commenting on the bid, Jackson said, courtesy of The Australian:

Skip Essential Infrastructure Fund and Stonepeak bring the experience and insight required to allow Genex to play a substantially larger role in Australia's energy transition.

The Genex board hasn't promised it will engage with the takeover bid. It noted a potential acquisition would be subject to its recommendation, due diligence, and regulatory approvals. Notably, it would need the approval of the Foreign Investment Review Board.

And in other news likely to move the Genex share price today, the company achieved record revenue and its maiden full-year positive cash flow last financial year.

Its solar farms brought in $26.1 million of revenue (unaudited) over financial year 2022. Meanwhile, its net operating cash flow reached $4 million.

The post Genex share price in focus amid Atlassian co-founder's $300m takeover bid appeared first on The Motley Fool Australia.

ASX renewable energy shares incorporate a range of companies involved in producing clean energy sources.

They span several sectors including resources, materials, and energy. Think lithium explorers, battery producers, electric vehicle manufacturers, clean energy providers… arguably, they're all in the renewables space. But for now, let's just focus on clean power producers.

Power has been a hot topic in the Australian economy of late. Electricity prices have skyrocketed and are contributing significantly to rising inflation, which is currently running at 5.1% per annum.

This problem highlights the urgent need for more renewable energy sources. Not only to lower power costs for consumers but also to support a lurching grid at risk of more frequent blackouts and outages.

So, why did several ASX renewable energy shares fall in June?

ASX renewable energy shares dip in June

Well, let's remember that ASX renewable shares are a relatively young and growing part of the market. And like any growth sector, it will have its ups and downs — and that's what we saw in June.

Mind you, June was a volatile month for ASX shares in general. The S&P/ASX 200 Index (ASX: XJO) lost 8.9% and the S&P/ASX All Ordinaries Index (ASX: XAO) lost 9.5% over the month.

First up, let's look at the broad picture.

Clean energy shares generally form part of the utilities segment of the ASX energy sector. The S&P/ASX 200 Energy Index (ASX: XEJ) fell 0.3% in June and is up 16.9% over the year to date.

There's no index for ASX renewable shares, however, we can look to the VanEck Global Clean Energy ETF (ASX: CLNE) for guidance. It's an exchange-traded fund trading on the ASX and it's chock-a-block full of global renewable energy companies. So it serves as a good proxy for ASX renewable energy shares.

The VanEck Global Clean Energy ETF share price dipped 2.5% in June. Year to date, it's down 9.6%.

Here's how some of the big players performed

Let's look at the performance of the bigger players among ASX renewable energy shares in June.

The Meridian Energy Ltd (ASX: MEZ) share price dropped 3% in June. Year to date, Meridian shares are down 6.5%.

Meridian is New Zealand's largest energy producer and uses 100% renewables. It owns five wind farms, scores of commercial solar arrays, and seven hydropower stations, including the country's largest.

The Mercury General Corporation (ASX: MCY) share price dropped 9.5% in June. Year to date, Mercury shares are down 16.5%.

Mercury is another New Zealand-based green energy provider that uses 100% renewables. The company owns nine hydro stations that supply 10% of the country's electricity annually. It owns five geothermal plants and four wind farms. It's currently building what will be New Zealand's largest wind farm.

The Infratil Ltd (ASX: IFT) share price rose by 0.6% in June. Year to date, Infratil shares are down 7.7%.

Infratil is a different kind of ASX renewable energy share. It's an infrastructure investment company that owns several green energy assets in New Zealand.

Genesis Energy Ltd (ASX: GNE) shares lost 0.15% in value in June. Year to date, Genesis shares are down 6.9%.

Genesis is a leading New Zealand electricity and gas retailer that owns a bunch of thermal and renewable generation assets.

Some ASX renewable shares had a shocker

The Genex Power Ltd (ASX: GNX) share price dropped 14% in June. Year to date, Genex shares are down 32.5%.

Genex is an Australian power generation company specialising in the generation and storage of renewable energy.

Ongoing challenges for ASX renewable energy shares

As my Fool colleague Bernd Struben reported in March, the renewables sector has experienced years of underinvestment, so it's difficult to ramp up production rapidly to meet today's soaring demand.

Plus, many clean energy companies are spending a lot — as you do when you're in growth mode — which is narrowing profit margins.

And it appears ASX investors don't like that, especially when a booming commodities cycle is delivering massive profits to the big resources companies digging fossil fuels out of the ground.

The post Here's why ASX renewable shares slipped in June appeared first on The Motley Fool Australia.

There is hardly a dull moment in the world of ASX-listed renewable energy shares. Given how topical the green transition is these days, attention-grabbing headlines are landing frequently. The March 2022 quarter was no different.

A notable item for energy-conscious investors was the release of Clean Energy Australia's 2022 report. This showed Australia achieved a new record for its portion of electricity generated by renewables in 2021 at 32.5%.

However, renewable energy advocates were disheartened by the latest federal budget. According to the document, climate spending will tumble 35% over the next four years under the current government.

So, how did it all pan out for ASX renewable shares in the March quarter?

ASX renewable shares present a mixed bag of results

Two companies running on low charge

As with any sector over a three-month period, there are usually winners and losers. Unfortunately for Genex Power Ltd (ASX: GNX) and Mercury NZ Ltd (ASX: MCY), both companies found themselves in the negative return bucket.

Firstly, renewable energy project developer Genex Power suffered a significant fall during the quarter. By the end of March, Genex shares were 27.5% lower than at the beginning of the year. Investors appeared unimpressed by the company's first-half results as it posted a net loss after tax of $4.41 million. However, revenue increased 51% to $11.96 million during the period.

Secondly, Mercury experienced a 2.8% reduction in its share price by the end of the March quarter. The ASX-listed renewable share also unleashed its half-year results in February. Though, the numbers didn't instil much confidence in shareholders. For instance, revenue fell 7.5% compared to the prior corresponding period to $873 million. Likewise, underlying earnings after tax dropped 13% to $20 million.

What about the green winners of the March quarter?

It wasn't all doom and gloom for ASX renewable shares during the recent quarter. On the other side of the fence, Meridian Energy Ltd (ASX: MEZ) managed to gain 4.1%. Yet another New Zealand-based ASX-listed electricity generator, Meridian secured a positive return despite posting a 36% fall in its net profit after tax (NPAT).

Lastly, to find a quarterly return greater than 5% we need to relax the definition of an ASX renewable share. Including companies that produce some of their electricity via renewable assets, as opposed to the majority, we unlock one ASX share that served up a gain of 25.7% during the period.

The company is AGL Energy Limited (ASX: AGL) and it has wowed investors as its share price has continued to strengthen since the beginning of 2022.

Already this year, AGL has rejected two takeover bids from entrepreneur Mike Cannon-Brookes and Brookfield Asset Management. The energy company's board has held firm that it believes it is worth more than $8.25 per share.

The post Rain or sunshine for ASX renewable shares in the March quarter? appeared first on The Motley Fool Australia.

Now, before we continue, there's no single clear definition of what constitutes an ASX renewable share.

Traditionally, you'd expect them to belong to companies providing sustainable energy sources outside of fossil fuels. Say solar, wind, hydro, tidal, or geothermal.

But, these days, you could argue that lithium miners producing a material vital to battery power storage count among that group too. But then electric vehicles need nickel and copper too.

So, while there's merit in that argument, for the purposes of this article, we'll stick to the traditional definition of ASX renewables shares.

How have these ASX renewable shares performed in 2022?

Contact Energy Ltd (ASX: CEN) has a market cap just north of $6 billion. The New Zealand-based electricity provider operates 11 power stations and produces 80-85% of its electricity from renewable hydro and geothermal stations.

The Contact Energy share price is down around 4.3% so far in 2022.

Fellow ASX renewable share, Mercury NZ Ltd (ASX: MCY) has a market cap of just under $7.2 billion. The company generates more than 15% of New Zealand's electricity and all that electricity is now generated from renewable sources.

The Mercury NZ share price is down almost 8% year-to-date.

Then there's small-cap ASX renewable share Genex Power Ltd (ASX: GNX), with a market cap of $197 million. The Aussie-based company is focused on the generating and storing renewable energy, with various solar, hydro, and wind assets.

The Genex Power share price is down 27.5% in the New Year.

How does this compare to ASX fossil fuel shares?

While not all ASX fossil fuel focused shares have shot the lights out this year, many have rocketed higher on the back of soaring prices for everything from coal to oil to gas.

The Woodside Petroleum Ltd (ASX: WPL) share price, as one example, has soared 42% in 2022, with crude oil hitting its highest levels in 14-years following Russia's invasion of Ukraine and pre-existing supply constraints.

Yancoal Australia Ltd (ASX: YAL) has performed even better, with thermal coal prices breaking all-time highs last month. The Yancoal share price is up 61% this calendar year.

What the experts are saying

Addressing the lagging performance of many ASX renewables shares, RC Global's chief investment officer Roy Chen said (quoted by The Australian Financial Review):

It's a combination of some clean energy stocks being driven up the year before, then becoming relatively expensive, while others do have some real issues. But I see the biggest problem being too many of these ETFs, or even active managers in the space, chasing very similar companies. Then when the tide turned, investors deserted the ETFs, causing outflows.

Chen added that while many fossil fuel companies have been waiting to expand their operations, a lot of ASX renewable shares have been spending big to upscale at a time when commodity prices are soaring.

"There are some of these clean energy companies that have issued profit warning after profit warning, and warned profit margins could even turn negative because costs are becoming so much," he said.

And the outperformance advantage could lie with ASX fossil fuel shares over ASX renewables shares for some time yet.

According to an analyst at Wentworth Williamson, Martin Marais:

With geopolitical issues and an industry that is incapable of rapidly ramping up production after years of underinvestment, it is likely that the supply/demand imbalance may take many months, if not years, to fix. In our opinion, demand is unlikely to fall much while there are big supply issues in terms of new discoveries and bringing extra projects online.

At US$80 per barrel for oil and with higher gas prices, we believe that Australian oil and gas producers present good value at their current prices, and accordingly we have invested a meaningful portion of our fund into our best picks among them.

What's next for ASX renewables shares?

But don't count ASX renewables shares out just yet.

According to VanEck Australia senior associate for investments and capital markets Alice Shen (quoted by the AFR):

This trend towards clean energy stocks too will likely gain momentum as energy consumers seek substitutes for fossil fuels and the demand for renewable energy rises to meet climate change carbon emissions targets.

Clean energy assets are typically pro-cyclical and tend to overperform when the economic cycle expands and capital spending on renewable energy increases. We could therefore see clean energy companies are likely to rally in the months ahead as the world seeks cleaner and more reliable supplies of energy.

The post Why are ASX renewable shares struggling in 2022? appeared first on The Motley Fool Australia.

Key points

• The Genex share price is down today, and has dropped 24% in 12 months
• The energy utility company has hit a construction milestone at its K2-Hydro project
• Today's announcement indicates the project is on track for use in Q4 2022

The Genex Power Ltd (ASX: GNX) share price is down today, but that doesn't mean its operations are.

This morning, the clean energy generation company announced it had made ground-breaking progress with the construction of its flagship Kidson project.

At the time of writing, the Genex share price has fallen 2.63%, trading at 18.5 cents apiece.

Let's take a closer look…

K2-Hydro construction on-track

The 250MW Kidson Pumped Storage Hydro Project, or K2-Hydro for short, is the flagship project of Genex's Kidson Clean Energy Hub in far north Queensland.

Once constructed, it will be the third-largest electricity storage device in the country — with a capacity of 2,000 megawatt hours [MWh] — producing and delivering on-demand renewable energy during high periods.

With a totally-funded construction cost of $777 million, its the first of its kind to be privately developed, according to the company, and will have an overall lifespan of 80 years.

In this morning's announcement, Genex Power advised that the project's construction was on track, with a chunk of the to-do list already checked off ahead of schedule.

Major construction in the main access tunnel has been underway over the past two months. Now, the company has pushed ahead with two manned shifts per day delivering round-the-clock underground tunnelling.

This will progress the construction stage by 8 metres per day for the next 6 months — pushing towards the project's goal of first power generation by the fourth quarter of 2024.

What did management say?

Commenting on the update, Genex CEO James Harding said:

Following an intense period of site establishment and preparation works, I am delighted that the EPC Contractor JV of McDonnell Dowell and John Holland has formally commenced the underground excavation works for the Kidson Pumped Storage Hydro Project.

This represents a significant milestone in the project construction timeline which was achieved ahead of schedule.

We look forward to working alongside the EPC JV and keeping the market updated as the program continues to push ahead over the course of this year.

Genex share price snapshot

The Genex share price has seen a volatile 12 months, dropping overall by almost 21%.

In late November, the Genex share price saw its 52-week-low of 18 cents, though no company news was released.

The company has a market capitalisation of $197 million at the time of writing.

The post Genex Power (ASX:GNX) share price is sinking today despite project milestone appeared first on The Motley Fool Australia.

It's no secret the world is decarbonising, but there's another reason the ASX renewable energy sector could be worth watching in 2022.

Chief investment officer for AXA Investment Managers' Core Investments Chris Iggo says decarbonisation could increasingly "determine capital allocation and investment opportunities" in the future.

Let's look at why the fundie is bearish on decarbonisation, as well as which ASX shares operate in the area.

The market in 2022

While the risk of COVID-19 causing havoc on share markets continues as the new year approaches, concerns of inflation have also started to surface.

According to Iggo, during the pandemic, policymakers supported economic growth by cutting interest rates and "loosening fiscal purse strings". But now, he says, "the era of pandemic-crisis monetary policy is coming to an end".

As a result, central banks will likely scramble to reduce inflation – a challenge that's not so simple. Iggo commented:

The impact of the pandemic on global economic trends … will take some time to really understand. For now, however, central banks will err on the side of caution and will need to be convinced – by evidence of persistent second round effects – that the decades-long period of low inflation is coming to an end.

Luckily, Iggo believes investors can look forward to "decent returns" while central banks make necessary changes.

That's because trends like energy transition are still pushing companies to make structural changes.

ASX renewable energy sector on watch

Iggo is optimistic about renewable energy in 2022. Particularly, as energy prices are likely to continue increasing. He commented:

Energy prices rose in the second half of 2021 – a key reason why broader inflation has also increased – yet, there has been no global approach to pricing carbon, which could push energy prices even higher. When it comes, and it will, the economics will swing sharply in favour of renewably produced energy and that will quickly allow upstream activities to benefit.

He also noted that the ongoing COVID-19 recovery, climate innovation, and re-purposing supply chains may bring "strong tailwinds for equity investors", leaving investors with "opportunities to profit".

Finally, he stated, the march towards decarbonisation will be driven by the market even more so in 2022:

Investors are playing a key role in supporting decarbonisation through asset allocation decisions, in engagement with companies on transition plans, and by supporting new technologies and business models that rate highly in terms of ESG.

With that in mind, here are some shares to consider:

3 ASX renewables shares

Genex Power Ltd (ASX: GNX)

Genex Power is working to build a portfolio of renewable energy projects within Australia.

It operates projects producing power from solar, hydro energy, and wind, as well as a battery storage project.

Right now, its share price is 20 cents, 9% lower than it was at the start of 2021.

Infratil Ltd (ASX: IFT)

Infratil is a largely New Zealand-focused company investing primarily in energy, transport, and social infrastructure businesses.

The company owns a business that operates 22 New Zealand hydropower stations. It also owns others that develop wind and solar generation in North America, Europe, and Asia.

Infratil shares are currently trading for $7.60, 6% higher than they were at the start of this year.

Contact Energy Limited (ASX: CEN)

Contact Energy also operates in New Zealand.

It retails electricity generated from geothermal and hydropower.

The company also produces power using thermal generation and supplies gas and broadband.

Shares in Contact Energy are swapping hands for $7.30. They've fallen 14% in 2021.

The post How might renewable energy investment opportunities play out in 2022? appeared first on The Motley Fool Australia.

The Genex Power Ltd (ASX: GNX) share price shot up 12% to 21.5 cents in early trade today, after the company signed off on a deal with green energy giant, Tesla Motors Australia Pty Ltd. 

Shares in the Australian power generation company have since retreated to 20.5 cents apiece, up 7.89 cents at the time of writing.

Under the deal, Genex's Bouldercombe Battery Project, operating out of Rockhampton, Queensland, will integrate Tesla's real-time trading and control platform, Autobidder. The aim is to "optimise dispatch behaviour from the BBP, maximising revenue and operating efficiency".

Genex CEO James Harding called the news a "key milestone" in moving the project towards a financial close.  

Why is the Genex share price lifting?

Back in early October, the company announced that Tesla would supply 40 of its Megapack utility-scale battery energy storage systems (BESS) to the project, and would be warrantied for 20 years. 

The agreement also states that Tesla "will provide a minimum level of contracted revenues to support project financing of the development of BBP", which will help push towards financial close. 

Investors appear to welcome the news as Australia moves towards a greener, more renewable future.

Genex has promised that its portfolio of renewable power projects will provide clean energy to more than 350,000 homes by 2025, offsetting almost two megatonnes of CO2 per annum. 

Here's how Genex has performed recently…

The Genex share price has appeared relatively stable over the past 12 months, up 7.89%.

It saw dips occurring in early April and towards the end of November — coinciding with the financing for the Kidston Pumped Hydro Storage Project (K2 Hydro), and the sudden sell of director Simon Kidston's shares just a few months later. 

At the time of writing, Genex has a market capitalisation of around $219 million.

The post The Genex (ASX:GNX) share price shot up 12% earlier today. Here's why appeared first on The Motley Fool Australia.

The latest findings from the most comprehensive climate report released to date have rattled ASX 200 shares today. What has been described as a 'code red for humanity', the report produced by the Intergovernmental Panel on Climate Change (IPCC) has unearthed some concerning conclusions.

What is the climate report and what does it say?

In short, the latest IPCC report is not good news for the environment. The report estimates that global warming will reach 1.5 degrees Celsius by 2030 based on our current trajectory. Additionally, the study found that global temperatures have increased by 1.1 degrees since the industrialisation period. Unfortunately, Australia is even worse than the global average, with a 1.4 degree elevation.

Key takeaways:

• Global temperatures likely to increase 1.5 degrees Celsius by 2030 without action,
• Reforestation and carbon removal would be needed to get back under 1.5 degrees,
• Severe draughts, floods, and fires expected to increase,
• Australia needs to aim for Net-zero in the 2030s,
• Call for no more oil, coal, or gas exploration or infrastructure.

Eerily, the IPCC's climate report lands as catastrophic wildfires tear through Greece.

Why does this matter for ASX 200 shares

This could have a significant impact on the Australian share market, with many companies having exposure to natural resources reliant industries such as coal mining, oil drilling, and gas extraction, which are all energy-intensive activities with high carbon emissions.

ASX 200 shares such as Santos Ltd (ASX: STO), Woodside Petroleum Limited (ASX: WPL), and Ampol Ltd (ASX: ALD) are all being sold off today following the news.

Professor Lesley Hughes, who is a Pro-Vice-Chancellor and biologist at Macquarie University, said:

There must be no new oil, coal or gas exploration or infrastructure. We have got to stop subsidising fossil fuels. We've got to electrify everything and then run everything from renewable energy. We've got to change our diets.

Similarly, United Nations secretary-general Antonio Guterres highlighted there should not be any new coal plants built after this year. Meanwhile, the existing coal plants should be phased out by 2030 in OECD countries.

Obviously, if tighter regulations are put on oil, gas, and coal companies, this would likely cause pressure on the share prices of ASX companies in those industries.

On the other hand, Guterres also said, "By 2030, solar and wind capacity should quadruple and renewable energy investments should triple to maintain a net-zero trajectory by mid-century."

Such a rapid growth proposition could create a positive tailwind for renewable companies. Some ASX shares outside the top 200 that are geared towards renewables are enjoying a boost today. These names include Calix Ltd (ASX: CXL), Lion Energy Ltd. (ASX: LIO), and Genex Power Ltd (ASX: GNX)

The post What could the latest climate report mean for ASX 200 shares? appeared first on The Motley Fool Australia.

The Genex Power Ltd (ASX: GNX) share price is up today following news of the company's Kidston Pumped Hydro Storage Project. Genex has secured all the financing it needs to go ahead with the project.

The Genex Power share price has had a poor month. At the time of writing, it's down 14% since this time last month.

However, today's news has given the Genex share price a much-needed boost. It's currently up 2.5%, trading for 21 cents.

Let's look closer at today's news from the renewable energy developer.

Kidston hydro storage project funding

This morning, Genex announced it's secured $660 million of financing to close contracts for its 250MW Kidston Pumped Hydro Storage Project.  

The final piece of the financing puzzle was the $3 million variation deed to the loan note subscription agreement it secured from the Clean Energy Finance Corporation.

Prior to that, Genex had received a $610 million debt facility from the Northern Australia Infrastructure Facility.

It also secured a $47 million project grant funding agreement from the Australian Renewable Energy Agency (ARENA), the McConnell Dowell Constructors Pty Ltd and John Holland Group Pty Ltd. Combined with the forgiveness of $9 million of convertible notes previously issued to ARENA by Genex.

In conjunction with Genex's fully underwritten fundraising of $115 million in late March, the project is now fully funded.

Construction is set to commence this month.

More about the project

The Kidston Pumped Hydro Storage Project is a first-of-its-kind venture into hydro energy.

It is utilising the abandoned Kidston Gold Mine in Far North Queensland, making use of pre-existing mining accommodation and road access.

It will integrate Genex's 270WM Kidston Solar Project.

The company claims it will be able to generate, store and dispatch renewable energy on demand during peak periods.

Commentary from management

Genex CEO James Harding welcomed the progress, saying:

I would sincerely like to thank our financiers NAIF, ARENA and the CEFC, together with the Queensland Government, for their continued and longstanding support of Genex and the project, without which the realisation of this iconic project would not be possible.

We look forward to updating the market when we commence construction at the Kidston site toward the end of this month.

Genex Power share price snapshot

The Genex Power share price is having a particularly volatile time on the ASX of late.

It's up by 28% over the last 6 months, but down 6% year to date. It's also up 57% over the last 12 months.

Genex has a market capitalisation of around $158 million, with approximately 1 billion shares outstanding.

The post Here's why the Genex Power (ASX:GNX) share price is up today appeared first on The Motley Fool Australia.

It's another cracking day for the ClearVue Technologies Ltd (ASX: CPV) share price. This comes as it rallies a further 17% higher to 69 cents a share.

In isolation, today's performance alone is impressive, but the real eyebrow-raising occurs over a longer timeline. Taking a look at the bigger picture, the ClearVue share price is 65% higher now than it was a month ago. Right now you may be asking "what's the fuel setting the photovoltaic company's shares on fire? Let's take a look.

Renewables are gaining interest

ClearVue's share price has likely been the beneficiary in what seems to be an insatiable demand for renewable investments this year. To clarify, the company has developed glass that can harness solar energy, effectively turning windows into photovoltaic solar panels.

This means ClearVue could be accounted for in the same group as other recent renewable highflyers. These companies include:

• Solar and wind farm operator, Tilt Renewables Ltd (ASX: TLT) up 92% in the last 6 months;
• Solar farm operator Genex Power Ltd (ASX: GNX) up 24% in the last 6 months; and
• Freshly listed bioenergy producer, Delorean Corporation Ltd (ASX: DEL) up 95% since its ASX debut yesterday.

Much of the excitement stems from the US government's $2 trillion (with a T) infrastructure and green energy plan. This is aimed at addressing climate change. Investors are clamming to get ahead of the curve, as governments begin to pour big money into renewables.

With a product that could see buildings making better use of all that vertical exposure, ClearVue is seeking to capture the spending needed to make a greener way of living.

Other news sending the ClearVue share price skyward

It's more than a prototype — that's what ClearVue has been pushing heavily with recent marketing efforts. The company emphasised this towards the end of March with its listing on the OTCQB, an over-the-counter market for early-stage companies in the US. Around the same time, ClearVue launched a marketing campaign targeting architects, façade engineers, and sustainability engineers.

In addition, ClearVue's latest share price jump comes after the appointment of Japanese greenhouse leader, Tomita Technologies, as a distributor. The agreement will see Tomita as the exclusive distributor in Japan for the next 5 years, with the option to extend. The deal shows promising signs for ClearVue to move ahead with commercialising its technology.

Having already gained 495% in the last year, the ClearVue share price is certainly outperforming the S&P/ASX 200 Index (ASX: XJO). For comparison, the benchmark index has delivered 29.4% over the last 12 months.

The post The ClearVue (ASX:CPV) share price is up 65% in a month. Here's why appeared first on The Motley Fool Australia.

The Genex Power Ltd (ASX: GNX) share price is still motionless today as the renewable energy developer finalises its capital raising, which was launched yesterday.

This leaves the attention on who is pouring money into the company to make the hydro project possible. It appears Australian rich listers and Atlassian Corporation PLC (NASDAQ: TEAM) founders Mike Cannon-Brookes and Scott Farquhar are in the mix.

At the time of writing, the Genex share price is frozen in a trading halt at 27.5 cents per share on the ASX.

Funding a renewable future

The ASX-listed Genex Power share price remains halted as the company finalises the financing for stage 2 of its Kidston hub. As part of funding the $777 million hydro development, Genex Power tapped the market yesterday to source $115 million. Reportedly, Atlassian founders Mike Cannon-Brookes and Scott Farquhar substantially contributed.

Mike's wife Annie and her firm Grok Ventures, as well as Scott's wife Kim Jackson and her firm Skip Capital, were backers of the Genex Power capital raising. The funds will go towards constructing and bringing online a 250MW pumped storage hydro energy development.

Genex is one of the many companies investing in a renewable energy future. The Kidston clean energy hub already has established a 50MW solar firm that powers 26,000 homes and offsets 120,000 tonnes of CO2 per year. Following the completion of stage 2, Genex plans to develop a further 150MW wind project and solar farm expansion.

The addition of Genex Power to the Grok Ventures portfolio fits alongside the numerous other renewable investments the private fund has made. Such investments include the world's largest solar energy infrastructure in the making, Sun Cable; and interest-free solar payment provider, Brighte.

When will Genex Power resume trading on the ASX?

Based on the capital-raising presentation, the institutional offer was conducted yesterday. The retail portion of the offer is expected to open on Tuesday 30 March and close on Friday 16 April. The trading halt should be lifted tomorrow, allowing the market to once again trade in the ASX-listed company.

However, a reminder for those hoping to squeeze into the capital raise, you'll need to already own shares. This is due to the ASX T+2 settlement, meaning it takes 2 business days for purchases to settle. Unfortunately, you need to be on the share registry prior to 7 pm Friday to participant in the capital raising. 

The post Genex Power (ASX:GNX) can count Atlassian founders as major backers appeared first on The Motley Fool Australia.

The Genex Power Ltd (ASX: GNX) share price isn't going anywhere after the renewable power generation company announced the final capital raising puzzle piece to fund its Kidston Pumped Storage Hydro Project (K2-Hydro).

The Genex share price is currently in a trading halt, frozen at 27.5 cents a share. The company has outperformed the S&P/ASX 200 Index (ASX: XJO) over the last year, with a staggering 175% share price gain.

Further funds enable full ownership

Genex announced today that it had secured the final funding needed for the 250MW Kidston Pumped Storage Hydro Project (K2-Hydro). As a result, the full $777 million of financing required for the project has been sourced.

The final piece comes from the launch of a fully underwritten $90 million placement. This allows Genex to construct and operate the project with full ownership. Furthermore, the placement will involve the issuing of 170.1 million new fully paid ordinary shares in Genex. These new Genex shares will be issued at a share price of 20 cents per ordinary share.

The company has also signed an amendment with J-POWER for a further $25 million equity investment in Genex. The remaining funds have already been sourced with a $610 million debt facility from the Northern Australian Infrastructure Facility and a $47 million grant from the Australian Renewable Energy Agency.

Next step

Once all the funds are accounted for, Genex will aim to start construction in April/May 2021.

Genex chief executive officer James Harding commented on today's milestone:

Today's announcement, securing the balance of funding required to take the Kidston Pumped Storage Hydro Project to financial close, is a significant achievement for the Company.

More importantly, to be in a position to finance the project on a 100% equity basis and retain full ownership and control of the asset is a favourable outcome for Genex and its shareholders.

We are now in the final stages of closing out the financing and commencing construction and look forward to updating the market as we complete these milestones over the coming weeks.

Notably, Genex plans for a third stage development for the Kidston clean energy hub. The final chapter entails an additional 150MW wind and solar expansion. Although, we likely won't hear details on it until the completion of stage 2.

Will Genex's share price rise with renewables?

The Genex share price has certainly had a good run over the last year. In fact, much of the renewable space has gained attention in the 12 months gone. Companies like Tilt Renewables Ltd (ASX: TLT) have experienced a surge in share price as private equity floods capital into the sector.

Meanwhile, energy companies like AGL Energy Ltd (ASX: AGL) and Origin Energy Ltd (ASX: ORG) continue to add renewable assets. Even AGL's Chief Operating Officer, Markus Brokhof, recently stated that batteries would be crucial to Australia's energy grid in the near-term. Those comments were in the context of AGL recently proposing a 200MW battery at its Loy Yang Power Station. 

If the company can cater to the growing renewable demand, the Genex share price has the potential to grow with it.

The post Genex (ASX:GNX) share price frozen on hydro project fund raising appeared first on The Motley Fool Australia.

The Genex Power Ltd (ASX: GNX) share price is rising today following the release of the company's Kidston Hydro Project update. During late afternoon trade, the Genex share price is up 2.04% to 25 cents.

Let's take a look at what the power generation and renewable energy storage company reported.

What did Genex announce?

The Genex share price is on the rise today after the company reported a positive update regarding its flagship 250MW Kidston Pumped Storage Hydro Project.

In its release, Genex advised that development and financing activities associated with the project are well advanced. This follows the final investment decision (FID) delivered by the board in late December 2020.

The company stated that final due diligence is nearing completion, with construction, financing, and operations documentation mostly in agreed form.

However, Genex noted that it has revised its schedule and expects that contractual close will be accomplished in late March. In addition, financial close and the commencement of construction at the site is expected to follow early in the second quarter of 2021.

To accommodate the altered timetable, Genex secured an extension of its energy storage services agreement with EnergyAustralia.

In further news impacting the Genex share price, the company revealed it is currently in discussions with Japan's Electric Power Development Co. Ltd (J-POWER) about an agreed postponement of its share subscription agreement and technical services agreement.

Words from the CEO

Genex CEO James Harding commented:

We have now reached a critical point where all due diligence has been largely completed and our construction, financing and operational documentation is in substantially agreed form. As such, we are pleased that we have today secured the necessary extension from EnergyAustralia to align with our revised timeline for Contractual Close this quarter, and commencement of construction early next quarter.

We are thankful for the ongoing support of EnergyAustralia, and also our broader stakeholder group including the Northern Australia Infrastructure Facility, Queensland State Government and the Australian Renewable Energy Agency, for their continued support as we work toward financial close.

About the Genex share price

The Genex share price has gained 25% since this time last year. The company's shares dropped to a low of 8.4 cents in March, and have surged more than 170% since then. 

Based on the current Genex share price, the company has a market capitalisation of around $130 million.

The post Why the Genex (ASX:GNX) share price is rising today appeared first on The Motley Fool Australia.

The Genex Power Ltd (ASX: GNX) share price is up over 5.5% today and currently trading at 28 cents.

Genex Power is focused on developing a portfolio of renewable energy generation and storage projects across Australia.

The company's flagship Kidston Clean Energy Hub, located in north Queensland, will integrate large-scale solar generation with pumped storage hydro.

Genex share price pumps after company locks in funding

The Genex share price bumped up after the company confirmed that the Queensland Government is going to provide a $147 million funding package. 

The funding will go toward the construction of a new 275kV single circuit, 185.9km transmission line from Kidston to Mt Fox, and a new substation at Mt Fox.

The new infrastructure will facilitate the connection of the company's Kidston Pumped Storage Hydro Project to the national electricity market.

Powerlink Queensland will build, own, and operate the project, which is expected to support over 400 new jobs during construction. The funding package will be advanced directly to Powerlink.

Positioning for future growth

Genex believes that the new transmission infrastructure will underpin fresh potential for future sustainable energy projects. 

The company stated that the transmission line will facilitate the creation of a new renewable energy zone in north Queensland, which is a location that's abundant with strong wind and solar resources.

Genex CEO James Harding commented:

The Transmission Line will support not only our flagship Kidston Pumped Storage Hydro Project, but the broader Kidston Clean Energy Hub including the Kidston Stage 3 Wind Project and the Kidston Stage 2 Solar Project, with the creation of a new North Queensland Renewable Energy Zone.

The funding package announced today is $15 million more than the original $132 million package offered by the Queensland Government in September 2020.

Over the past 12 months, the Genex share price has climbed more than 28%.

The post Why the Genex (ASX:GNX) share price is up 5% today appeared first on The Motley Fool Australia.