Genesis Energy (ASX:GNE) has begun a $1.1 billion program to build new renewable generation and grid-scale battery storage between now and 2030.

The $2.34 billion market capitalisation company says this new strategy reset, Gen35, will be funded from profits generated from the Kupe gas field.

The company states securing 4 solar sites to generate around 450 megawatts (MW) and investing in grid-scale batteries are the first stages of the strategy reset. Genesis adds that staged development of up to 400MW of battery capacity is already underway.

Investments in solar, grid-scale battery storage, and wind are expected to help grow Genesis’ renewable portfolio to around 8,300 gigawatts per hour (GWh) — a 160% increase on its current 3,200 GWh of renewable generation.

The company notes its proportion of renewable generation is also estimated to rise 95% by 2035, the same level as New Zealand’s overall generation.

Genesis forecasts Gen35 to drive growth in earnings, with $500 million in earnings before interest, taxes, depreciation, amortisation and fair value movements of financial instruments (EBITDAF) by FY25 and in the ‘mid-high $500 millions’ between FY26 and FY28.

Operating expenditure is estimated to be lower than the current levels by FY28, while stay-in-business capital expenditure is forecast to be around $70 million per annum for FY25 to FY27.

Meanwhile, Genesis confirms it will also move from focusing on pure offtake agreements to a portfolio of development options including power purchase agreements (PPAs), joint ventures (JVs) with PPAs, and building generation and storage assets on its own balance sheet.

Genesis says the new strategy follows progress being made toward biomass replacing coal, which has the potential to open up interesting regional economic development opportunities and jobs.

Chief Executive Officer (CEO) Malcolm Johns says Genesis is focused on partnering with its customers while electrifying New Zealand’s economy to achieve net-zero carbon emissions by 2050.

“The Genesis of the future is now a very different investment than the Genesis of today.”

“The Genesis of the future is now a very different investment than the Genesis of today”

Genesis Energy is a diversified New Zealand energy company that sells electricity, reticulated natural gas, and liquefied petroleum gas (LPG) through its retail brands of Genesis and Frank.

Write to Adam Drought at Mining.com.au

Images: Genesis Energy