Infrastructure investor Infratil is still upbeat about its investment in US renewable energy development company Longroad Energy Holdings, despite President Donald Trump's election promises to boost coal.
While Infratil said the company's progress has been overshadowed by the potential impact of Trump's promises, "the president's comments about each of coal, gas and renewables are inconsistent, making outcomes hard to anticipate."
In a market update to the New Zealand stock exchange, it noted that while there is no way of knowing how federal and state policies, the rising cost of coal mining, the falling cost of gas, and improving renewable plant economics will play out, there are also political, societal and commercial factors which make it extremely unlikely that the US will suddenly stop building renewable generation.
"There will be headwinds, but the ship is unlikely to sink," it said.
The current US situation is "hardly ideal" for Longroad's plans to develop, but Infratil said its business model is suited to dealing with uncertainty.
