Impact Stories
Lodestone
"Lodestone’s goal directly corresponds to our positive investing themes and the implementation of their farms will continue the transition to a lower-carbon world."
About this company
Lodestone Energy is Aotearoa’s leading solar generation company; harnessing the sun’s energy to provide new sources of renewable energy and reduce our carbon emissions.
98% Kiwi-owned and creating jobs in the regions, Lodestone currently has three farms generating electricity in Kaitaia, Edgecumbe, and Waiotahe, two under construction, and five more consented.
Why Pathfinder invested:
Pathfinder allocates a portion of our KiwiSaver investments towards private companies (not listed on the stock exchange) that we believe are making a positive impact. We initially invested in Lodestone in mid-2021, and have participated in numerous funding rounds since then, as our investment team views Lodestone as a high-quality solar farm developer and sees continued strong economic potential for solar energy in Aotearoa.
“Growing energy demand, driven by population growth, AI, and electrification, underscores the need to expand renewable sources like solar. To meet our net-zero targets, Aotearoa must diversify its clean energy mix, reduce reliance on hydro and avoid fallback on coal or Liquefied Natural Gas (LNG) during dry periods” Alex Safran, Pathfinder ESG Analyst.
Winter 2024’s energy crisis was a "perfect storm" demonstrating the fragility of New Zealand’s energy market. A prolonged dry period that pushed hydro lakes to record lows, a sharp fall in local gas production, coincided with demand spikes over a cold winter. Without enough alternative energy sources, the country turned to expensive coal imports - and experienced record-high pricing in the electricity market.
What impact is the company making?
Net-zero carbon emission targets: Lodestone aims to supply 3–5% of New Zealand’s electricity market within approximately five years (1). This will increase the share of clean, solar-generated electricity in the grid, helping to reduce reliance on fossil fuels and preserve hydro storage during dry periods.
Energy resilience - locally: Local generation of electricity (like solar) reduces the reliance on long-distance transmission, which can be expensive and less efficient. Lodestone plans to implement battery storage in the future, which will enable surplus daytime capacity to be transferred to support peak use periods in the mornings and evenings.
Empowering communities: Lodestone work closely with local iwi and community stakeholders. The typical 12-month construction period creates local jobs and upskilling opportunities in the prospering solar industry. Once operational, Lodestone invests time and resources in providing educational opportunities to local schools and interest groups interested in learning about solar farms.
Power Purchase Agreements: Long-term renewable electricity supply agreements enable Lodestone’s commercial customers to lock in stable electricity prices, reduce their Scope 2 emissions and strengthen their sustainability credentials (1). Lodestone currently has contracts with the Warehouse Group and Inghams New Zealand.
Productive land use: Lodestone uses an ‘agrivoltaic design’ on its solar farms, with panels elevated two metres above the ground and spaced in wide rows. This setup allows farm machinery to operate between the panels and enables livestock to graze underneath, maintaining up to 80% of the land’s original agricultural productivity. The panels provide valuable shade and shelter for animals, supporting animal welfare and pasture health.
Embodied carbon: Lodestone solar panels come from Trina Solar and have significantly lower embodied carbon than other market equivalents, and are committed to ensuring an ethical and sustainable supply chain, according to Lodestone CEO, Gary Holden.
Recycling: Lodestone use bi-facial panels that are largely powered by the sun-facing surface, but they also absorb light reflected from the ground. The panels are designed to last a minimum of 35 years and retain 80% of their original efficiency by the end of that period. Once they reach the end of life, the panels will be repurposed for a second life elsewhere or recycled (See more at FAQs and Policies – Lodestone Energy).
Sources & further reading
Lodestone Energy – powering on to the future | NZBusiness Magazine
Electric Farms | Rewiring Aotearoa
Photo credit: Lodestone Energy
Information contained in this article is either available in the public domain or approved for sharing by Lodestone Energy. Pathfinder Asset Management Limited is the issuer of the Pathfinder KiwiSaver Plan and Pathfinder Investment Funds. Product Disclosure Statements for these offers are available at pathfinder.kiwi. Learn more about how we invest ethically by reading our Ethical Investment Policy & Exceptions Register available at pathfinder.kiwi.