New Project Marks Milestone for Avangrid and Amazon, AGR Up 11% Premarket
In a significant expansion of their renewable energy partnership, Amazon (NASDAQ: AMZN) and Avangrid (NYSE: AGR) have announced the launch of a new 98.4 MW wind project, the Amazon Wind Farm Oregon – Leaning Juniper IIA, in Oregon.
By repowering an existing wind farm in Gilliam County, the project will install 40 new turbines to generate sufficient clean energy to power approximately 22,800 homes each year. This endeavor supports Amazon’s ambitious goal to run on 100% renewable energy by 2025 and promises substantial local economic and environmental benefits.
Avangrid’s stock exhibited notable performance on the financial front, reflecting the market’s optimistic reception to the company’s renewable energy initiatives. On the last trading session before the announcement, Avangrid’s shares saw a 1.20% increase, closing at $30.38, with a pre-market surge of 11.92% to $34.00 Monday.
Avangrid Extends Partnership with Amazon on Wind Energy Project
Amazon and Avangrid have expanded their renewable energy partnership in the United States through a new 98.4 MW wind project in Oregon called Amazon Wind Farm Oregon – Leaning Juniper IIA. This repowering project will significantly extend the life and efficiency of an existing Avangrid wind farm in Gilliam County. The 40 new turbines are expected to generate enough clean energy to power approximately 22,800 homes annually.
This project supports Amazon’s goal of utilizing 100% renewable energy across its operations by 2025. It is also expected to create around 200 local construction jobs and provide over $11 million in property taxes to support community services. Avangrid has additionally committed to recycling all decommissioned turbine blades, diverting over 1,000 tons of material from landfills.
Beyond the environmental benefits, Amazon Wind Farm Oregon – Leaning Juniper IIA will also deliver economic gains for local communities. Avangrid’s Community Sponsorship Program, funded by revenues from the project, will aid schools, libraries, preschools, and fire departments in the area. Overall, this partnership signifies a major renewable energy milestone for both companies.
Avangrid’s Shares Up 11% in Premarket
Avangrid’s stock saw positive momentum in the last trading session on Friday, rising 1.20% to close at $30.38 per share. This uptick continued in pre-market trading on Monday, with shares climbing to $34.00, an increase of 11.92%. The company has a market valuation of $11.75 billion and a PE ratio (TTM) of 22.18.
Meanwhile, S&P 500 futures were relatively flat heading into Monday’s opening bell, signaling cautious optimism about the broader market. Avangrid notably stood out with an 11.9% surge in pre-market activity, underscoring strong investor interest in the company’s renewable energy and sustainability efforts. However, the S&P 500 and Dow Jones Industrial Average showed mixed early trading, reflecting diverse reactions across the market and uncertainty around factors impacting different companies and sectors.
Overall, Avangrid’s stock performance reflects positive sentiment around the business, especially contrasted with more subdued moves in the S&P 500. The company’s leadership in pre-market trading reinforces Avangrid’s position as an attractive investment within the utilities sector based on its clean energy trajectory and growth potential.
Do you think Avangrid can continue its momentum through 2024? Let us know in the comments below.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.