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SRE's Unit SoCalGas Announces an Initiative to Reduce GHG Emissions
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Sempra Energy’s (SRE - Free Report) unit, Southern California Gas Company (SoCalGas), is set to launch a $1.5 million initiative to provide 50 fuel cards to fleet operators that are purchasing Class 8 heavy-duty natural gas trucks. This initiative is valid on purchases made between Sep. 9 and Dec. 8, 2024.
The program aims to accelerate the transition to cleaner fuels in the heavy-duty transportation sector. Each $30,000 fuel card will help reduce greenhouse gas (GHG) emissions in line with the California Air Rescue Board’s carbon neutrality goals.
SRE’s Transition Toward Green Energy
Sempra Energy is continuously working to reduce GHG emissions in the transportation industry by promoting cleaner energy sources. It has been expanding its liquefied natural gas (LNG) facilities, which play a key role in providing lower-carbon fuel for ships, trucks and other transportation methods.
Through its Sempra Infrastructure division, the company is developing two new LNG export projects at its ECA Regas Facility. Its ECA LNG Phase 1 is currently under construction, 85% of which has been completed in June 2024, and it is expected to commence commercial operations in the summer of 2025. The company is also involved in the Port Arthur LNG Phase 1 project, a natural gas liquefaction and export terminal in Southeast Texas with direct access to the Gulf of Mexico.
SoCalGas’ ASPIRE 2045 sustainability strategy has made significant progress toward converting its fleet to low and zero-emission vehicles. 38% of its fleet is already running on alternative fuels. The company aims to reach 50% by 2025 and 100% zero-emission vehicles by 2035.
These projects aim to support the transportation sector's shift from traditional fuels to cleaner options, helping reduce emissions and promote more sustainable transportation globally.
Need for Greater Investment in Green Energy
The need for investments in green energy has never been more dire. As the effects of climate change become increasingly evident, shifting to renewable energy sources like solar, wind, hydropower and biofuels is essential to reduce greenhouse gas emissions. Green energy offers a cleaner, sustainable alternative to fossil fuels and helps protect the environment.
With increasing global concerns over climate change, investing in initiatives like SoCalGas' fuel card program helps accelerate the transition to sustainable energy and cleaner transportation sectors.
Heavy-duty transportation contributes significantly to emissions, and programs like this will drive the adoption of technologies aimed at cutting emissions and meeting future emission reduction targets.
Stocks to Consider
Other gas distribution companies transitioning to cleaner fuels in the industry are discussed below.
Atmos Energy Corporation (ATO - Free Report) has been expanding its renewable natural gas operation. It has now seven flowing RNG facilities directly connected to the system. Atmos Energy also executed interconnect agreements with three additional RNG projects.
ATO has a long-term (three to five years) earnings growth rate of 7%. The Zacks Consensus Estimate for ATO’s fiscal 2024 sales indicates year-over-year growth of 4.1%.
MDU Resources Group, Inc. (MDU - Free Report) is likely to continue witnessing 1-2% customer growth in the electric and natural gas segments annually through 2026. The construction of Heskett Station Unit IV, the 88-megawatt natural gas-fired combustion turbine in Mandan, ND, has been completed. The utility retired the Heskett I and II coal-fired units in February 2022, which should aid the company in cutting emissions.
MDU has a long-term earnings growth rate of 6%. The Zacks Consensus Estimate for the company’s 2024 earnings indicates year-over-year growth of 3.3%.
National Fuel Gas Company (NFG - Free Report) is investing to reduce greenhouse gas emissions from its delivery system. It aims to lower emissions by 40% by 2030 and by 85% by 2050 from the 1990 levels.
The Zacks Consensus Estimate for NFG’s fiscal 2024 and 2025 earnings has increased 10.1% and 8.8%, respectively, in the past 90 days to $5.13 and $6.18.
SRE Stock’s Price Movement
Shares of SRE have risen 18.3% in the past six months compared with the industry’s 16.2% growth.
Image: Bigstock
SRE's Unit SoCalGas Announces an Initiative to Reduce GHG Emissions
Sempra Energy’s (SRE - Free Report) unit, Southern California Gas Company (SoCalGas), is set to launch a $1.5 million initiative to provide 50 fuel cards to fleet operators that are purchasing Class 8 heavy-duty natural gas trucks. This initiative is valid on purchases made between Sep. 9 and Dec. 8, 2024.
The program aims to accelerate the transition to cleaner fuels in the heavy-duty transportation sector. Each $30,000 fuel card will help reduce greenhouse gas (GHG) emissions in line with the California Air Rescue Board’s carbon neutrality goals.
SRE’s Transition Toward Green Energy
Sempra Energy is continuously working to reduce GHG emissions in the transportation industry by promoting cleaner energy sources. It has been expanding its liquefied natural gas (LNG) facilities, which play a key role in providing lower-carbon fuel for ships, trucks and other transportation methods.
Through its Sempra Infrastructure division, the company is developing two new LNG export projects at its ECA Regas Facility. Its ECA LNG Phase 1 is currently under construction, 85% of which has been completed in June 2024, and it is expected to commence commercial operations in the summer of 2025. The company is also involved in the Port Arthur LNG Phase 1 project, a natural gas liquefaction and export terminal in Southeast Texas with direct access to the Gulf of Mexico.
SoCalGas’ ASPIRE 2045 sustainability strategy has made significant progress toward converting its fleet to low and zero-emission vehicles. 38% of its fleet is already running on alternative fuels. The company aims to reach 50% by 2025 and 100% zero-emission vehicles by 2035.
These projects aim to support the transportation sector's shift from traditional fuels to cleaner options, helping reduce emissions and promote more sustainable transportation globally.
Need for Greater Investment in Green Energy
The need for investments in green energy has never been more dire. As the effects of climate change become increasingly evident, shifting to renewable energy sources like solar, wind, hydropower and biofuels is essential to reduce greenhouse gas emissions. Green energy offers a cleaner, sustainable alternative to fossil fuels and helps protect the environment.
With increasing global concerns over climate change, investing in initiatives like SoCalGas' fuel card program helps accelerate the transition to sustainable energy and cleaner transportation sectors.
Heavy-duty transportation contributes significantly to emissions, and programs like this will drive the adoption of technologies aimed at cutting emissions and meeting future emission reduction targets.
Stocks to Consider
Other gas distribution companies transitioning to cleaner fuels in the industry are discussed below.
Atmos Energy Corporation (ATO - Free Report) has been expanding its renewable natural gas operation. It has now seven flowing RNG facilities directly connected to the system. Atmos Energy also executed interconnect agreements with three additional RNG projects.
ATO has a long-term (three to five years) earnings growth rate of 7%. The Zacks Consensus Estimate for ATO’s fiscal 2024 sales indicates year-over-year growth of 4.1%.
MDU Resources Group, Inc. (MDU - Free Report) is likely to continue witnessing 1-2% customer growth in the electric and natural gas segments annually through 2026. The construction of Heskett Station Unit IV, the 88-megawatt natural gas-fired combustion turbine in Mandan, ND, has been completed. The utility retired the Heskett I and II coal-fired units in February 2022, which should aid the company in cutting emissions.
MDU has a long-term earnings growth rate of 6%. The Zacks Consensus Estimate for the company’s 2024 earnings indicates year-over-year growth of 3.3%.
National Fuel Gas Company (NFG - Free Report) is investing to reduce greenhouse gas emissions from its delivery system. It aims to lower emissions by 40% by 2030 and by 85% by 2050 from the 1990 levels.
The Zacks Consensus Estimate for NFG’s fiscal 2024 and 2025 earnings has increased 10.1% and 8.8%, respectively, in the past 90 days to $5.13 and $6.18.
SRE Stock’s Price Movement
Shares of SRE have risen 18.3% in the past six months compared with the industry’s 16.2% growth.
Image Source: Zacks Investment Research
SRE’s Zacks Rank
SRE currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.