Genesis Energy secures $400M to fast-track renewable power expansion
Genesis Energy is raising $400 million through a share sale to accelerate renewable energy projects. The move comes as the company reports steady growth in clean power generation over the past five years. The New Zealand government will also invest up to $198 million to maintain its majority stake in the firm.
The funding will help expand hydro, geothermal, and wind capacity while adding backup systems like batteries and flexible thermal plants. Finance Minister Nicola Willis highlighted the importance of these investments for energy security, particularly during dry periods.
Over the last five years, Genesis Energy has increased its renewable energy share from around 85% to over 90%. Annual sustainability reports show this growth was driven by expansions in hydro, geothermal, and wind power. The company's chief executive, Malcolm Johns, noted that higher hydro-generation led to cheaper electricity purchases and reduced reliance on coal and gas at the Huntly plant.
The company recently posted record operating earnings, thanks to better trading, fuels management, and customer contracts. Despite this, Genesis is maintaining its full-year earnings forecast between $490 million and $520 million. Johns expects wholesale power prices to stabilise as hydro conditions improve, with more gas-fired generation likely in the second half of the year.
To fund its plans, Genesis will offer $100 million in new shares and a $300 million renounceable rights issue for existing shareholders. The capital will accelerate renewable and 'firming' capacity projects, cutting the timeline from 10–15 years to just 5–6 years. The government's $198 million investment ensures it retains a 51% stake in the company.
Finance Minister Nicola Willis emphasised that these investments will strengthen energy security and reduce risks during dry years. The focus remains on expanding clean energy while ensuring reliable backup systems are in place.
The $400 million share sale will help Genesis Energy fast-track renewable projects and backup capacity. With government support, the company aims to complete key investments within six years. The move aligns with national decarbonisation efforts while securing energy supply for the future.
