NextEra Energy Inc., the world’s largest supplier of wind and solar energy, is now worth more than oil giant Exxon Mobil Corp., once the world’s largest publicly traded company,media reported. NextEra closed Wednesday (October 7) with a market capitalization of $145 billion, surpassing Exxon Mobil’s $142 billion. Chevron Corp., the oil giant’s U.S. rival, is understood to be in the company. For the first time, the market value of the market also exceeded it.
The shift reflects the global energy transition that is embracing clean energy and moving away from fossil fuels. NextEra is now the world’s most valuable utility, thanks in large part to strong investments in renewable energy, particularly wind. Exxon’s fortunes have been reversed as the popularity of electric cars and action to combat climate change have become more urgent.
“Renewable energy is considered a growth story, while oil and gas is a decline story,” says Jigar Shah, co-founder of Green Financier Genereate. “
At the end of last year, NextEra had about 18 billion watts of wind and solar power, enough to power 13.5 million homes. With the signing of the contract, the installed capacity of renewable energy will be expanded to 12 gigawatts. The company’s share price has soared more than 20 per cent this year.
Meanwhile, Exxon Mobil’s shares plunged more than 50 percent as the outbreak curbed global demand for fuel. The company’s second-quarter loss was the worst in modern history. In August, Exxon Mobil was removed from the Dow Jones Industrial Average. In 2007, the company’s market capitalisation was $525bn, more than three times its current market capitalisation.
Investors have endorsed NextEra’s clean energy strategy, and renewable energy is becoming the mainstream and ideal source of energy. Policies in at least a few 12 U.S. states will eventually force the grid to be completely cleaned, and Democratic presidential candidate Joe Biden has proposed a green power system in the U.S. within 15 years.
“It’s no longer a ni-profit investment,” said Kit Konolige, utility analyst at Bloomberg Intelligence. “