The ReNu Energy Ltd (ASX: RNE) share price is having an incredible day.
In morning trade, the green energy company's shares are up 122% to 8.9 cents.
At one stage, the ReNu Energy share price was up as much as 150% to a high of 9.9 cents.
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Why is the ReNu Energy share price rocketing?
Investors have been scrambling to buy the company's shares on Wednesday after it announced an agreement with Australian superannuation fund, Hesta.
According to the release, the company's wholly owned subsidiary, Countrywide Hydrogen, has signed a term sheet with Hesta for the investment of up to $100 million in the company's projects to produce green hydrogen.
The term sheet outlines that Hesta will commit up to $100 million for project development, whereas ReNu Energy will be responsible for their delivery and operation and the securing of debt and grant funding.
Furthermore, ReNu Energy will be entitled to a fee for originating and progressing the projects. The agreed fee will reflect the status and progress of the projects at the time Hesta invests.
Management commentary
ReNu Energy chairman, Boyd White, commented:
The agreement with HESTA follows progress the Group has made in advancing its portfolio of green hydrogen projects since the acquisition of Countrywide Hydrogen in February this year. HESTA is highly respected for its commitment to sustainability and responsible investments. With HESTA's support we look forward to delivering green hydrogen and contributing to a low carbon future.
Hesta's chief investment officer, Sonya Sawtell-Rickson, added:
We're thrilled to be investing in the development of the Group's green hydrogen projects. We continue to look for opportunities like this to invest in innovative technologies and businesses that will support the transition to a low carbon future.
Investments like this will help create jobs and support communities, while delivering attractive risk-adjusted returns for our members. By providing innovative climate solutions, this investment will also serve our members' best financial interests over the long-term by contributing to an equitable, orderly and timely transition to net zero emissions by 2050 in order to minimise the systemic risks of climate change.
