RWE Ag, a German multinational energy company, is one of the leading renewable energy suppliers in Europe as well as globally, providing both renewable and fossil fuel energy in over 20 countries, and aims to be climate neutral by 2040.
RWE anticipates that it will spend approximately €50 billion ($62.7 billion USD) by 2030 to expand its offshore and onshore wind power, solar, storage systems, hydrogen, and flexible backup systems in Germany, where energy needs are great as nuclear and coal sources require replacement soon.
First-quarter earnings saw increases in both net profit and earnings due to a 20% increase in electricity production from solar and wind power. Adjusted earnings before EBITDA (earnings before interest, tax, depreciation, and amortization) doubled year-over-year to $1.31 billion USD, and adjusted net profits more than doubled from the previous year.
The company recently brought online a 60-megawatt battery storage center in County Monaghan, Ireland, reported Renewables Now, aimed at mitigating intermittencies in energy generation as well as supplying a short-term backup option for energy storage. RWE had previously installed an 8.5-megawatt battery in County Dublin in 2021 and has a 10 MW onshore wind farm in County Kerry.
RWE is looking to expand its wind farms in Ireland with projects submitted for a 62-MW wind project in County Cork, was recently awarded a 12.2 MW solar plant and energy storage project in Germany, and broke ground on a 17.1 MW onshore wind project in western Germany.
Investing in RWE and the Energy Transition
As Europe transitions to greater renewable energy, companies such as RWE Ag stand to profit. The KraneShares Global Carbon Transformation ETF (KGHG) focuses on the industry leaders globally like RWE Ag that are transitioning their operations to reduce and eliminate emissions, including major players within the energy sector.
The fund seeks to capture the true potential within the carbon transition by focusing on companies from within industries that are traditionally some of the highest emission offenders but that are on the precipice of transitioning to renewable technologies. These companies that are set to disrupt their industries would benefit greatly from being leaders in the transition, as the cost of carbon emissions will only become more expensive, cutting into the bottom line as demand decreases for high emissions offenders.
KGHG is an actively managed fund that invests globally across market caps and sectors in carbon emissions reducers that are taking active steps to reduce their carbon footprints and services or the carbon footprints of other companies. This also includes companies within the supply chain of the carbon-reducing companies and companies that are growing their businesses with companies that are materially reducing carbon emissions.
The fund utilizes proprietary, fundamental, bottom-up analysis using information disclosed by companies and third-party data. Companies invested in include RWE AG at 3.36% weight.
KGHG carries an expense ratio of 0.89%.
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