Infratil (ASX:IFT,NZE:IFT) said that near-term risks from proposed US-China tariffs are primarily focused on its 37.3% stake in US-based renewable energy developer Longroad Energy, according to a Thursday filing with the Australian and New Zealand bourses.
Longroad's solar-only projects for the year are largely insulated from tariffs due to reshored supply chains. Still, its two battery energy storage system (BESS) projects, reliant on Chinese components, face potential cost hikes that could impact viability and timing, the filing said.
The company said exposure will rise in the coming years as more BESS projects ramp up, and warned that growth could slow over the next two to three years if the current tariff pause does not hold.
Infratil believes customers may ultimately absorb the increased cost of tariffs and sees limited risk to its existing digital infrastructure contracts.
Shares of the company fell nearly 1% in recent Friday trade on the New Zealand bourse.
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