The Origin Energy Ltd (ASX: ORG) share price gained 4% today after the company released news of a green ammonia partnership.
Origin has partnered with Mitsui O.S.K. Lines (MOL). The two companies plan to look into creating a green ammonia supply chain in Australia.
The Origin Energy share price finished today trading at $4.42.
Let's take a closer look at Origin Energy's latest venture.
Is this the green future?
The Origin share price had a great day after the energy company announced it's looking into creating green ammonia.
Ammonia can be used as a renewable energy. It's often called 'green' when it's produced using renewable energy.
The companies will come up with a feasibility study outlining their plan to supply "key downstream markets" with green ammonia. They expect the feasibility study, which will look at beginning supplying green ammonia from 2026, to be completed by December.
Additionally, Origin is already undergoing a $3.2 million feasibility study looking into producing green ammonia in Bell Bay, Tasmania.
Origin's general manager of future fuels, Tracey Boyes commented on the benefits that may come from producing ammonia in Australia:
With our abundance of renewable resources and proximity to Asian markets, Australia is in the box seat to develop a world-leading hydrogen sector…
Transport is one of the biggest opportunities globally to achieve emissions abatement through the use of green and renewable fuels such as hydrogen and ammonia.
Boyes also noted Origin is in a prime position to explore producing green ammonia, due to its experience in exporting LNG.
Origin share price snapshot
Today's boost hasn't been enough to get Origin back into the red on the ASX.
Right now, shares in Origin are going for 8% less than they were at the start of the year. They have also fallen 24% since this time last year.
The company has a market capitalisation of around $7.4 billion, with approximately 1.7 billion shares outstanding.
