ASX Green Energy Stocks: FMG plans Pilbara renewables hub, AGL exits coal three years ahead of schedule

Fortescue unveils plans for WA renewables hub
Coal closures at AGL sites brought forward
Sustainable graphite play EV1 receives ‘B’ ESG score

Iron ore giant Fortescue Metals Group (ASX:FMG) has applied for clearance from the West Australian Environmental Protection Authority as part of a multibillion-dollar plan to construct and operate a renewable energy generation hub in Western Australia’s Pilbara region.

Set to rival the state’s Southwest grid, the Uaroo Renewable Energy Hub would see the electrical generation of up to 5.4 gigawatts from 340 wind turbines and a solar farm.

A battery storage system, substations and associated infrastructure plus tracks, roads, and corridors for electrical cabling would also be built across a footprint of 10,158 hectares on the Uaroo pastoral station owned by Harvest Road, the agricultural investment vehicle of Twiggy and Nicola Forrest.

According to some reports, the hub’s planned solar generation capacity of 3.33 gigawatts is more than twice the capacity of rooftop solar panels on WA’s southwest power grid and would reduce the miner’s annual carbon emissions of 2.2 million tonnes by 1.5 million tonnes over the next decade.

The proposal was made on Wednesday for public comment over the next seven days.

FMG share price today:

AGL brings forward coal closures

In a market announcement this morning AGL Energy (ASX:AGL) said it is advancing towards its plan to split into a power generator and carbon neutral energy retailer by June 2022.

The proposed demerger will see AGL split off its coal and gas generation assets and retail business into Accel Energy and AGL Australia.

AGL chief executive Graeme Hunt said the two industry leading companies will have key roles to play in the energy transition and outlined a set of climate commitments for both companies that demonstrate “decisive action” to accelerate its pathway to decarbonisation for each organisation.

“Accel Energy will provide reliable, low-cost energy with a strong focus on repurposing existing thermal generation sites as low carbon industrial Energy Hubs as it brings forward its coal closure dates to no later than 2033 for Bayswater Power Station (previously 2035) and 2045 for Loy Yang A Power Station (previously 2048),” he said.

This move would result in an emission reduction by a further 90 million tonnes over the period FY23 to FY50 compared to modelled outcomes of previous commitments, Hunt said.

“With Liddell scheduled to close by April 2023, Accel Energy will deliver a reduction in annual emissions of 18-27 per cent between FY25-FY34 and by 55-60 per cent in annual emissions between FY35- FY46 compared to an FY19 baseline.”

On the other hand, the retail arm of the business AGL Australia is intended to be carbon-neutral for scope 1 and scope 2 emissions when it lists and have “a pathway to net zero” for all emissions, including scope 3, by 2040.

A reduction of 50 per cent in emissions is targeted for AGL Australia by 2030 from the levels of fiscal 2019.

AGL ranked amongst the dirtiest providers in Greenpeace electricity guide

But in the latest Green Electricity Guide’ authored by Greenpeace Australia AGL, Australia’s biggest energy provider – AGL was given a ‘green score’ of just 1 star, meaning it is Australia’s biggest climate pollute

With the energy giant’s plan to burn coal well into 2040, Greenpeace Australia senior campaigner Glenn Walker said it showed the company’s awful climate credentials.

“AGL is Australia’s biggest climate polluter, accounting for about 8 per cent of Australia’s greenhouse gas emissions.

“Around 83 per cent of AGL’s generation comes from burning coal, and the company continues to hide behind greenwashing efforts and a dodgy planned demerger instead of taking meaningful action to reverse its destructive climate impact,” he said.

“This ranking is yet another damning indictment of AGL’s disregard for the environment and their customers.

“Rather than take any meaningful action, the company continues to hide behind marketing slogans, even going as far to propose a split in the organisation to hide its destructive climate impact.”

AGL share price today:

Evolution Energy Minerals receives ‘B’ ESG rating

Marvel Gold’s (ASX:MVL) spinout Evolution Energy Minerals (ASX:EV1) has been given a ‘B’ ESG rating from Digbee’s independent ESG experts at both a corporate and project level.

The research platform has provided the graphite-focused stock with numerous recommendations for improvement, which if applied, would deliver a substantially higher score of at least an ‘A’ by the second half of 2022 and attract “ESG funds looking to invest in battery minerals.”

EV1 managing director Phil Hoskins said the board is committed to achieving at least an ‘A’ rating, assisting the company to become the standout near-term sustainable graphite producer.

Some of the key areas for improvement identified in the report and which EV1 said it is working to address include, namely, a reduction in its carbon footprint.

A specialist advisor has been engaged to undertake a Life Cycle Assessment for the Chilalo Project, to determine the quantity of greenhouse gases (GHG) that the project will produce. It is also reviewing options to reduce emissions through the use of renewable power and other means.

Another key environmental recommendation is the requirement for a tailings storage facility (TSF).

Evolution Minerals said it has started the process to review options available for storage of tailings with a view to dry stacking tailings, thereby removing the requirement for a TSF.