Electric cars: Genesis Energy takes 65% stake in ChargeNet in $64m move to aid EV conversion, decarbonisation

Genesis Energy has taken a 65% stake in ChargeNet.

Power generator and retailer Genesis Energy said it will spend $64 million on taking a majority stake in ChargeNet, New Zealand’s largest nationwide electric vehicle (EV) public charging network.

Genesis said the move would make it a key investor in the growth of the country’s EV market and in the energy transition.

Under terms of the agreement, Genesis will acquire a 65% stake in ChargeNet, which was founded in 2015 by tech entrepreneurs Steve and Dianna West.

The controlling stake was bought from Mercuria, a firm founded in Geneva, Switzerland, in 2004 by Swiss traders Marco Dunand and Daniel Jaeggi.

Mercuria’s website says it is a leading commodities trader, committed to advancing the energy transition.

ChargeNet’s founders also reduced some of their shareholding, a Genesis spokesman said.

In April, the Australian Financial Review’s “Street Talk” said ChargeNet was raising capital, chasing $30m to supercharge growth.

Genesis said the investment would make it a quicker pathway to a new “value pool” identified within the company’s “Gen35″ strategy.

ChargeNet operates more than 400 public fast-charging points across the country, with more than 90% of New Zealand’s EV owners registered as customers.

Genesis said ChargeNet had a strong development pipeline poised to drive further growth as New Zealand shifted to more sustainable transport.

Genesis said its investment would enable ChargeNet to accelerate that growth with charge points expected to more than double by 2030.

The Government wants to see a national network of 10,000 chargers by 2030.

Chief retail officer Stephen England-Hall said the deal would progress the Genesis strategy of supporting customers to “electrify their lives”, and achieve a 30% market share in EV customers by 2028.

“Decarbonising transport is crucial for New Zealand’s future, and public charging infrastructure is a key element of that transition.”

Genesis has nearly 500,000 customers.

“We see strong potential in the New Zealand EV market,” England-Hall said.

“Rapid charging infrastructure is crucial for this transition and Genesis’ investment will accelerate a faster nationwide rollout, increase access for customers and drive value for shareholders. "

Genesis has committed to a $1.1 billion investment in renewable electricity infrastructure.

This includes the recent $150 million investment in a 100 MW/200 MWh grid-scale battery at Huntly Power Station and delivering up to 500 MW of grid-scale solar by 2028.

ChargeNet chief executive Danusia Wypych said the partnership with Genesis would accelerate network expansion and scale operations for the benefit of all consumers.

“Since our inception, we have been committed to reducing New Zealand’s reliance on fossil fuels in transport. We are proud of what we have achieved and excited about what lies ahead.

“With Genesis as a strategic partner, we intend to double the pace of installations and develop new solutions to ensure faster, more reliable charging experiences for all customers.”

New Zealand is still in the early adoption phase with EVs, which currently account for around 4% of the country’s light passenger vehicle fleet.

This is expected to ramp up to more than 25% within the next eight years.

The investment sits outside Genesis’ 2025 capital expenditure guidance and the company’s Ebitdaf guidance remains unchanged at $460m.

Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.