The Ampol Ltd (ASX: ALD) share price is in the red today. This comes after the fuel retailer announced it has partnered with the Australian Renewable Energy Agency (ARENA) to fund a national electric vehicle fast-charging network.
The arrangement will see fast-charging stations installed at more than 100 Ampol service stations all over Australia.
Right now, the Ampol share price is $28.43, 0.18% lower than its previous close.
Let's take a closer look at today's news from Ampol.
Fast charging coming to Ampol
The Ampol share price is down today after the company announced electric vehicle owners will soon be able to charge their cars quickly with Ampol.
As part of the Ampol Addressing Blackspots Fast Charging project, Ampol will be installing fast-charging bays at service stations in the Greater Sydney, Melbourne, Perth, and Brisbane regions.
Newcastle, Wollongong, Geelong, the Sunshine Coast, and the Gold Coast will also see fast-charging bays pop up in the near future.
Each station to receive fast charging will have at least 2 bays available to customers. The charging stations will use renewable energy or electricity covered by green certificates.
ARENA's Future Fuel Fund is putting $7 million towards the electrified additions to Ampol's stations.
According to ARENA, the total cost of Ampol's fast-charging bays will be $26.81 million.
Ampol believes electricity will be the "primary mobility energy source by 2050".
The news follows the announcement of Ampol's Future Energy and Decarbonisation Strategy. The strategy, which was made public in May, outlines the company's goal to reach net zero emissions by 2040.
As part of the strategy, Ampol partnered with clean energy producers and tech giant Tesla Inc to make use of hydrogen energy and solar power. The Ampol share price gained 4.2% over the three trading days following the release of its strategy.
Work to construct Ampol's fast-charging network will begin before the end of the year.
Ampol is one of 5 applicants to receive a share of ARENA's Future Fuel Fund's first round of funding. Round 1 saw $24.55 million handed out by ARENA today.
Combined, the 5 applicants will use the funds to build 403 new fast-charging stations in 8 Australian regions.
Commentary from management
Ampol's CEO and managing director Matt Halliday commented on today's news that might be affecting the Ampol share price. He said:
E-mobility infrastructure is a central pillar to capturing our existing customer base through the energy transition, as we look to expand our role in electricity to make the ease of the current liquid fuels era translate into the future (battery electric vehicle) environment. This includes exploring 'at-forecourt', 'at-home' and 'at-destination' solutions.
Ampol share price snapshot
Ampol is in the green on the ASX by the skin of its teeth. Right now, the Ampol share price is 0.74% higher than it was at the start of the year. It has also gained 4.44% since this time last year.
The company has a market capitalisation of around $6.7 billion, with approximately 238 million shares outstanding.
