The CEO of Macquarie Group Ltd (ASX: MQG) has said that green hydrogen is "part of the solution" to solving the problem of emissions and climate change.
Macquarie is one of the larger investors in green investments with its Green Investment Group (GIG).
There are a number of different ways that emissions can be reduced, according to Macquarie boss Shemara Wikramanayake.
After talking with her teenage children, Wikramanayake acknowledged her generation is accountable to the younger generation, who can only help with awareness, and start fixing the problems, according to reporting by The Australian.
She was quoted as saying:
And what our generation has to do is not carry on saying 'Oh there's a problem'…we have to get on with the solution.
Macquarie now has 300 renewable energy projects around the world. This is having a growing impact on Macquarie's earnings and balance sheet, which could mean a bigger influence on the Macquarie share price.
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Green hydrogen
Green hydrogen is hailed as one of the main ways the world can decarbonise. Renewable energy and batteries are part of the strategy. But there are also some sectors that are harder to decarbonise, like heavy industry.
Hydrogen could be a key fuel. One of the methods to make emission-free hydrogen is to split hydrogen from water molecules using an electrolyser and renewable energy.
Wikramanayake said that both 'blue' and green hydrogen may be required during the energy transition, according to reporting by The Australian. She said:
Each jurisdiction will have to, depending on its economic drivers, determine which is best.
Frankly, blue hydrogen in the early stages will probably become cost competitive sooner than green…for blue hydrogen, there's existing infrastructure that you can actually use already.
Ultimately it's not a choice, I think we have to run both in parallel.
Meanwhile, Fortescue Metals Group Limited (ASX: FMG) and its boss Andrew Forrest are heavily pursuing green hydrogen. Forrest says that blue hydrogen and carbon capture are not effective enough at reducing emissions.
Macquarie is reportedly working with oil gian BP to conduct feasibility studies on creating green hydrogen hubs for both domestic and exporting opportunities.
What else is Macquarie working on?
The Australian reported Macquarie is also working on the feasibility of the first batch of offshore wind projects on Australia's coastline.
The global investment bank is working on a 1GW offshore wind project off Victoria's Bass Coast and perhaps others, supported by the Victorian government. Wikramanayake thinks harnessing offshore wind will gain traction:
It's a new technology for Australia, offshore wind, but internationally it's really well established. It's proven to be clean and cost competitive etc, so we're hoping we can bring offshore wind into the mix of renewable sources here for Australia's transition.
Macquarie share price snapshot
Whilst the Macquarie share price has fallen 14% since the start of 2022, it's up around 25% over the last 12 months.
