Shares in Ampol Ltd (ASX: ALD) are falling this morning despite news the company has taken a stake in CSIRO-backed hydrogen energy generation and storage startup Endua.
At the time of writing, the Ampol share price is trading at $29.71 – 0.34% lower than yesterday's closing price.
Endua is developing hydrogen energy generation and storage modules, aiming to deliver environmentally friendly, off-grid electricity at a moment's notice.
Let's take a closer look at the news of Ampol's new partnership.
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Ampol partners with Endua
Ampol has committed to help develop and commercialise Endua's hydrogen energy technology, initially focusing on providing a clean energy alternative to the off-grid diesel generators market.
Currently, off-grid industries and remote communities generally source power from expensive and environmentally damaging diesel generators.
According to the CSIRO, Australia's off-grid diesel generators use $1.5 billion worth of diesel and create 200,000 tonnes of carbon emissions annually.
Endua hopes its power generation and storage technology will allow those reliant on diesel generators to use hydrogen energy instead.
Its device uses electrolysis technology, developed with the CSIRO, to produce hydrogen and storage in a modular power bank, capable of driving power loads up to 150kW from a single pack.
Endua CEO Paul Sernia is among the founders of electric vehicle fast charger producer, Tritium. Tritium is currently eyeing a $2.2 billion Nasdaq listing.
On Endua's vision, Sernia said:
We believe it's possible to give everyone access to clean power, whether in the city or the outback. We're solving the hardest problems in the move to net zero, for all purposes, not just those that 'fit' the renewables profile.
Ampol's partnership will see it providing access to Endua's technology to its ~80,000 business-to-business customers. It will allow companies reliant on diesel generators to access a low-carbon, off-grid energy solution.
Ampol's partnership with Endua was a key part of Ampol's recently unveiled decarbonisation strategy, although Endua wasn't named in the strategy's original announcement.
According to the Australian Financial Review, Ampol has taken a 20% stake in Endua.
Endua received $5 million funding from the CSIRO. The CSIRO says Endua's work is solving "some of the hardest problems in the transition to renewable energy".
Commentary from Ampol management
Ampol managing director and CEO Matthew Halliday commented on the company's investment:
We are excited to be involved with Endua, which is part of our commitment to extending our customer value proposition by finding and developing new energy solutions that will assist with their energy transition.
Ampol share price snapshot
The Ampol share price has been having a solid year so far on the ASX.
Currently, the Ampol share price is almost 5% higher than it was at the start of 2021. It has also gained around 5% since this time last year.
The company has a market capitalisation of around $7 billion, with approximately 238 million shares outstanding.
