Alternative Energy / Green Tech / Climate Change
back to investment strategyThe world is heating up with the acceleration of carbon dioxide emissions since the mid-20th century. A climate crisis could trigger economic shocks and supply-chain disruptions with unimaginable consequences.
Significant carbon reduction at a global level will need a focus on power generation, transport, industry, and heating/cooling. The adoption of green technologies (green tech) will be vital to achieve net zero targets. The political support for green tech in developed countries and in China remains strong. The combined cost of the green initiatives announced is unprecedented. At USD 4 trillion, it is almost 2x the total combined spending of many of the largest projects ever undertaken in the world. However, the fiscal reaction function of governments in the face of green tech spending is likely underappreciated and should not be dismissed when evaluating future paths for companies and industries.
We see the greatest opportunities for the growth of green tech in batteries, energy efficiency, hydrogen power, renewable energy, and transport.
Significant carbon reduction at a global level will need a focus on power generation, transport, industry, and heating/cooling. The adoption of green technologies (green tech) will be vital to achieve net zero targets. The political support for green tech in developed countries and in China remains strong. The combined cost of the green initiatives announced is unprecedented. At USD 4 trillion, it is almost 2x the total combined spending of many of the largest projects ever undertaken in the world. However, the fiscal reaction function of governments in the face of green tech spending is likely underappreciated and should not be dismissed when evaluating future paths for companies and industries.
We see the greatest opportunities for the growth of green tech in batteries, energy efficiency, hydrogen power, renewable energy, and transport.
“These are the rough numbers, but you roughly need twice as much electricity if all transport goes electric, and then you need 3 times as much electricity if all heating goes electric.” Elon Musk, Tesla CEO April 26, 2021
To power increasing numbers of electric vehicles, the world needs:
More electricity
More wind power and solar power
Improved electricity storage
Better electricity transmission and charging
For all the items above, the world needs copper. Wind and solar power installations need copper by the tonne for its excellent properties of electrical and thermal conductivity, and corrosion resistance. Green electrification is projected to require an additional 5 million metric tonnes of copper by 2029, which would be 16% of global demand.
Other plans for sustainable transport
Traditional aircraft, helicopter, and bizjet manufacturers have ramped up their decarbonization initiatives, with roadmaps for the next 5-15 years. Green aviation is projected to be a USD 178 billion market up for grabs between 2028 and 2040. By comparison, the supersonic jets market is estimated to be USD 340 billion for 2020-2040. Green mobility disruption also means incremental investments to develop and improve high-speed trains in Europe (USD 150 billion) and China, and to fund a green hydrogen grid (EUR 180-470 billion by 2050).
We have made the following investments in the Alternative Energy/ Green Tech segment:
Minesto
Minesto is a Swedish Greentech company, is using a unique Deep Green technology which extracts energy from slow-moving tidal and ocean currents - one of the largest yet least used renewable energy sources on the planet. The company is a disruptor, using the natural, global resource of marine energy.