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NextEra Energy Continues To Tap New Sources Of Energy

by Ahmad
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NextEra Energy is a fast-growing utility in the country. NextEra Energy is heavily investing in building the nation’s clean energy infrastructure. These investments include building more LNG pipelines and power plants. To implement renewable energy sources. It develops wind and solar energy, as well as battery storage. 

Investors are reaping the benefits of these investments. Profits and dividends have grown above average for NextEra. It is the driving force behind market-crushing total returns. Renewable energy projects currently occupy a large portion of the company’s backlog. 

We aim to increase our growth rates over the next few years. It will continue to look for new growth opportunities. We discussed that during the conference call in our third-quarter report. Specifically, it highlighted two areas where it sees growth potential over the long term.

Hydrogen As A Powerful Energy Source

The past year has seen a lot of attention focused on green hydrogen. The fuel has the potential to revolutionize the oil industry. Renewable energy projects are becoming more prevalent. With an electrolyzer, water is converted to hydrogen and oxygen. For instance, NextEra produces hydrogen and oxygen. 

Florida’s NextEra is developing green hydrogen technology as part of a pilot project. The CFO of NextEra Energy, Rebecca Kujawa, stated this during the call. Moreover, one day this innovative technology may provide 100% carbon-free, 24-7 energy. Renewable energies would convert to green hydrogen. They are efficiently stored, shipping, and used when needed. 

CFO of NextEra Energy

Another green hydrogen project is also in the works, according to the CFO. Wind projects are part of its backlog, which includes a 500-megawatt project. Hydrogen fuel cell companies contract primarily to build the facility. According to Kujawa, the project’s customer is planning to construct a hydrogen electrolysis plant nearby. 

All of the facility’s energy requirements will be met using wind energy. Commercial and industrial end-users would be able to use hydrogen produced at the facility. Purchasing emissions-free green hydrogen to replace grey hydrogen and fossil fuels. Increasing the pace of decarbonization of industry and transportation.

NextEra sees an enormous opportunity in green hydrogen. The company can build electrolyzers and operate them. To support third-party projects, the company will make renewable energy capacity in Florida. Midstream services may also be offered. To the hydrogen industry, for example, storing and transporting hydrogen.

Starting A Water Business

NextEra is also optimistic about the future of water. The two investments Kujawa covered on the call were related to water. Her company acquired a rate-regulated water portfolio. The portfolio comprises eight counties in Texas. Our customer acquisition will benefit our customers substantially. In the foreseeable future, we will construct a world-class water utility.

Moreover, water reuse and reclamation project are being built by the company. That will allow our customers to save significant amounts on water usage. This will improve their efficiency and sustainability. We will also deliver attractive returns to Energy Resources as a result.

These water assets will only receive a $45 million investment. But we are confident the market will multiply. Clean water solutions could generate further contracting opportunities for renewables.

Renewable energy sources might be installed to help power the utility’s water assets over time. It would enable it to deliver cleaner water. Moreover, water and green hydrogen may overlap because water plays a significant role in this technology.

Building A Cleaner Future

Natural gas and renewable energy have been NextEra Energy’s leading sources of cleaner energy. This two-pronged strategy will help it achieve that goal. The platform’s strong renewable energy capacity will enhance.

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