This ASX hydrogen share has soared ahead in recent times, but could it go even higher?

The ReNu Energy Ltd (ASX: RNE) share price has soared 50% since 7 November and is currently trading at 6 cents.

Let's take a look at the outlook for this ASX hydrogen share.

What's ahead?

ReNu Energy shares have been lifting in the past couple of weeks amid hydrogen project news.

On 9 November, ReNu advised that superannuation fund HESTA had agreed to a non-binding term sheet to invest up to $100 million in the company's green hydrogen projects.

Commenting on the deal, ReNu CEO Greg Watson said:

Our task now is to advance to definitive agreements as soon as possible and progress commercial discussions with our project partners for green hydrogen offtake.

Meanwhile, on 17 November, ReNu advised it had signed a memorandum of understanding (MOU) with Australian Pacific Airports to develop a green hydrogen project at Launceston Airport.

Peak Asset Management executive director Niv Dagan recommends the ReNu Energy share price as a buy. Commenting on The Bull, Dagan said:

The company invests in renewable and clean energy technologies. Also, it identifies and develops hydrogen projects. RNE acquired Countrywide Hydrogen in February 2022.

The company continues to progress its hydrogen projects.

Trading halt

ReNu Energy shares are in a trading halt today at the company's request. The company's share price is on ice ahead of a capital raising. In a statement, ReNu Energy said:

The company requests that the trading halt remain in place until the commencement of
trading on Wednesday, 23 November 2022 unless before that time it makes an
announcement in relation to the Capital Raising to the market or requests that the trading
halt be lifted.

Share price snapshot

The ReNu Energy share price has descended 57% in the past year, while it has lost 26% year to date.

For perspective, the ASX 200 has fallen more than 3% in the last year.

This ASX hydrogen share has a market capitalisation of nearly $22 million based on the current share price.

The post Up 50% in 2 weeks, this ASX hydrogen share is still a buy: expert appeared first on The Motley Fool Australia.

In morning trade, the green energy company's shares are up 122% to 8.9 cents.

At one stage, the ReNu Energy share price was up as much as 150% to a high of 9.9 cents.

Why is the ReNu Energy share price rocketing?

Investors have been scrambling to buy the company's shares on Wednesday after it announced an agreement with Australian superannuation fund, Hesta.

According to the release, the company's wholly owned subsidiary, Countrywide Hydrogen, has signed a term sheet with Hesta for the investment of up to $100 million in the company's projects to produce green hydrogen.

The term sheet outlines that Hesta will commit up to $100 million for project development, whereas ReNu Energy will be responsible for their delivery and operation and the securing of debt and grant funding.

Furthermore, ReNu Energy will be entitled to a fee for originating and progressing the projects. The agreed fee will reflect the status and progress of the projects at the time Hesta invests.

Management commentary

ReNu Energy chairman, Boyd White, commented:

The agreement with HESTA follows progress the Group has made in advancing its portfolio of green hydrogen projects since the acquisition of Countrywide Hydrogen in February this year. HESTA is highly respected for its commitment to sustainability and responsible investments. With HESTA's support we look forward to delivering green hydrogen and contributing to a low carbon future.

Hesta's chief investment officer, Sonya Sawtell-Rickson, added:

We're thrilled to be investing in the development of the Group's green hydrogen projects. We continue to look for opportunities like this to invest in innovative technologies and businesses that will support the transition to a low carbon future.

Investments like this will help create jobs and support communities, while delivering attractive risk-adjusted returns for our members. By providing innovative climate solutions, this investment will also serve our members' best financial interests over the long-term by contributing to an equitable, orderly and timely transition to net zero emissions by 2050 in order to minimise the systemic risks of climate change.

The post Guess which ASX energy share just exploded 150% on a green hydrogen deal with Hesta? appeared first on The Motley Fool Australia.