U.S. markets close in 1 hour 52 minutes
  • S&P 500

    +10.83 (+0.26%)
  • Dow 30

    +120.26 (+0.35%)
  • Nasdaq

    -2.34 (-0.02%)
  • Russell 2000

    +0.51 (+0.02%)
  • Crude Oil

    -0.11 (-0.17%)
  • Gold

    +11.90 (+0.67%)
  • Silver

    +0.11 (+0.43%)

    +0.0004 (+0.04%)
  • 10-Yr Bond

    +0.0500 (+3.27%)

    +0.0050 (+0.37%)

    +0.0630 (+0.06%)

    -1,028.87 (-1.64%)
  • CMC Crypto 200

    -3.76 (-0.27%)
  • FTSE 100

    +36.03 (+0.52%)
  • Nikkei 225

    +40.68 (+0.14%)

Ameren (AEE) Announces Net-Zero Carbon Emission Goal by 2050

  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

Ameren Corporation AEE has recently announced the goal to achieve net-zero carbon emissions by 2050 in Missouri and Illinois. In addition, the company laid out plans for its largest-ever expansion of clean wind and solar generation, which is included in the Integrated Resource Plan (IRP) of Ameren Missouri.

A Detailed Look at Ameren’s Plan

As per Ameren Missouri’s latest Integrated Resource Plan (IRP), the expansion represents major clean energy investments and carbon emission reduction efforts from the previous plan that was presented three years ago. Ameren Missouri’s new and progressive goals include reducing carbon emissions by 50% by 2030, 85% by 2040 and ultimately, net-zero carbon emissions by 2050 compared to 2005 levels.

The plan includes the addition of 3,100 megawatts (MW) of wind and solar generation by 2030, reflecting a combined investment of approximately $4.5 billion and a total of 5,400 MW by 2040. The IRP includes investments of nearly $8 billion in renewable energy over the next two decades. It also plans to acquire two Missouri-based wind energy facilities in the next few months for approximately $1.2 billion.

Ameren Missouri’s latest IRP also includes advancing the retirement of two of its coal-fired energy centers. The Sioux Energy Center is now planned to retire in 2028 and the Rush Island Energy Center's retirement is planned for 2039. Per the new IRP, more than 75% of Ameren’s current coal-fired energy generating capacity will retire by 2040, while all of them are expected to be closed by 2042.

Utilities’ Adoption of Renewable Energy

To mitigate the deadly effects of climate change in the United States, utilities are increasingly adopting renewable energy sources to produce electricity, with wind and solar energy gaining popularity in particular. The latest announcement made by Ameren is a bright example of that.

Going ahead, per the latest forecast made by the U.S. Energy Information Administration (EIA), electricity generation from renewable energy sources is expected to rise from 17% in 2019 to 20% in 2020 and 22% in 2021, primarily driven by projected additions to the wind and solar generating capacity.

Notably, like Ameren, other utilities are also steadily progressing toward a carbon-free environment to make most of the growing renewable energy opportunities. For instance, Xcel Energy XEL aims to achieve 80% carbon reduction by 2030 and 100% carbon-free electricity by 2050.

In September, Duke Energy DUK announced an updated climate strategy with a new goal of net-zero carbon emissions from electric generation by 2050. Likewise, DTE Energy DTE also announced its goal last year, to achieve net-zero carbon emissions in its electric company by 2050.

Price Performance & Zacks Rank

Ameren’s shares have lost 2% in the past year compared with the industry’s 14.3% decline.

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ameren Corporation (AEE) : Free Stock Analysis Report
Xcel Energy Inc. (XEL) : Free Stock Analysis Report
DTE Energy Company (DTE) : Free Stock Analysis Report
Duke Energy Corporation (DUK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research