Approach

Investment Thesis

The world will rapidly transition to being mostly powered by clean energy. Clean Energy will be delivered by Renewable Energy (producing unlimited energy from renewable sources at near zero marginal cost) and Electrification (electricity as the energy input for all the things we use).

There are six major technologies that underpin these two major themes:

Wind energy
Solar PV
Battery energy storage
Electric vehicles
Heat pumps
Green metals

These technologies have the potential to take us all the way to 100%. There will certainly be other technologies that will play a part (hydro, biogas, solar thermal, existing nuclear, hydrogen for industrial processes) but they are unlikely to have anywhere near the impact of these six. There are other technologies that are pure snake-oil and these will have a negative impact on the clean energy transition by competing for investment and/or being used to delay action: Carbon capture and storage, carbon offsets, hydrogen for vehicles and heating, and new-build nuclear.

The deployment or uptake of renewable energy and electrification exhibit classic S-curve trajectories that have been observed in many technologies beforehand, such as computers and smart phones. For most of these we are at the start of the steep bit of the S curve which means they get big very quickly.

All of these technologies have been around for a long time. What has changed is the scale at which they are now being deployed, which is driven by advances in the technology and reduction in costs. See cycle below.

This page will be updated with more information on these six technologies and the investment implications over the next few months with each stock purchase.