The Unstoppable Rise of Renewables

Friday, 16 October 2020
Melbourne, Australia
By James Woodburn

How are you enjoying our explorations into the global transition from fossil fuels into clean energy?

Can we do more? Less? Is there something we’re missing?

Let us know at letters@portphillipinsider.com.au.

The conference kicks off with a bang at 9AM on Monday (Melbourne and Sydney time) with Mark Lewis, Head of Sustainability Research at BNP Paribas, one of the largest French asset managers.

He gives his observations on the economics of renewables, and why they are better now than they ever have been.

Anyway, there are still a heap of things to prep and get ready for so that the week goes off without a hitch. Of course, I always expect something to sideswipe us!

But the team has been working really hard to make it all seamless and as great an experience as we can, given the circumstances.

So, today I’m going to hand the reins to James Allen, my co-host and the star of the keynote event on Wednesday next week, in which he’ll be revealing his renewables investment ideas for the next decade.

This is a good excerpt of a report conference attendees have already received at the start of this week as a kind of ‘event prep’ guide. But even then, you could have missed it. And if you haven’t signed up, your chance is now!

Over to James…

And have a great weekend!

Cheers,
Woody


The Unstoppable Rise of Renewables

By James Allen
Keynote Event Speaker at ‘Beyond Oil

What a whirlwind few months it has been for us all.

It’s hard to catch your breath, isn’t it?

Like most people, our team has been working from home.

But we haven’t let that stop us from putting on a great event for you — one that I think could influence your actions in the market for a long time to come.

My mission at the conference — and particularly on day three, Wednesday, 21 October — is to show you the investment implications, and great potential, that will be unlocked during the transition to a low-carbon economy.

I know there’s a lot of doom and gloom clouding all our lives at the moment.

We put on this conference to show you that there is hope.

Lots of it.

Even now.

The global disruption caused by the pandemic we are seeing now has seemingly made the renewable energy opportunity BIGGER and more URGENT.

When so many industries ground to a halt this year, oil demand basically fell off a cliff.

As recently as 25 September, OilPrice.com reported:

OPEC In Trouble As Oil Outlook Worsens

OPEC has worked vigilantly to bring the oil market into balance, but with demand recovering more slowly than expected, the cartel may be out of options…’

Crude is currently hovering between US$40–42 a barrel, having briefly crashed into negative prices in March.

In April, Bloomberg reported:

Demand is set for biggest annual decline in history.

The entire oil industry — once the symbol of wealth, power and dominance — appears to be in tatters.

Every day when you open the paper, or flick through your newsfeed…the decline of fossil fuels is playing out before your eyes.

‘“So Unstable and So Volatile”: Oil Crash Crushes Individual Investors, Prompts Trading Overhaul’

The Wall Street Journal

‘Could Oil Prices Go To $0 Again?’

Forbes

‘Oil And Gas Drilling Set For A Multi-Decade Low In 2020’

OilPrice.com

But, reader, this is just HALF the story…

You see, at the same time oil is hitting the skids, renewables are hitting their stride…

New projects are coming on stream at a quickening pace.

Huge amounts of capital are flowing in.

And we’re seeing some outrageous price surges from the rising stars of the sector.

‘Offshore wind “investment jumps 319%”… BloombergNEF says $35bn in financings were recorded for 28 projects in the first half of 2020’

Renews

‘Renewables confidence rises as solar boom shows no sign of fading’

The Sydney Morning Herald

‘Biden promises $2tn green energy and infrastructure plan’

Financial Times

‘New EU hydrogen strategy “marks beginning of the end of the fossil-fuel era”’

Recharge

There’s little doubt the global pandemic has pushed this energy transition past the tipping point.

It has turned a spotlight on a fossil fuel industry on its knees.

And there may be no coming back from it…

This is a historic opportunity for the world to, on one hand, create packages to recover the economy, but on the other hand, to reduce dirty investments and accelerate the energy transition.

International Energy Agency

After decades of drumroll, the energy markets are now making their migration AWAY from fossil fuels and into renewables.

This is a deep-rooted change to society — and brings with it huge potential and huge opportunity.

A recent report from the International Renewable Energy Agency said:

According to current and planned policies, the global energy sector will see cumulative investments of USD 95 trillion over the period until 2050. The transition towards a decarbonised global energy system will require scaling up investments in the energy sector by a further 16% (an additional USD 15 trillion by 2050).

With so much money flooding into renewables…we have seen some companies leading the way make massive surges in price since the start of the year…

Vivint Solar, Inc [NYSE:VSLR]: UP +174%
Sunrun Inc [NASDAQ:RUN]: UP +163%
Proton Motor Power Systems PLC [LON:PPS]: UP +208%
Cell Impact AB [FRA:ICL]: UP +280%

(Source: Google Finance. All returns calculated between 1 January and 17 July 2020.)

These moves speak for themselves.

Now, keep in mind a couple of things.

First, these are all internationally listed companies.

The universe of renewable stocks is currently much deeper and more established outside of the Australian stock market. That’s not to say there aren’t some fabulous opportunities here — we’ll get into that next week at our show…

Second, not every renewable stock surges like these. All emerging bull markets are risky. You can’t rush in blindly, expecting every single investment you make to double or triple.

(This is one of the main reasons why Woody and I are putting on this conference.)

I have been helping my UK clients navigate this market already this year

The investment picture right now is incredibly encouraging.

We have taken some impressive gains these past few months as the anticipation and excitement about renewable energy builds.

Over the course of the next few days — and in my keynote event on day three of the summit (Wednesday, 21 October) — I’ll show you where we’ve been able to achieve success so far this year. 

I just want to talk about one of our winners for a second, because it was pretty special…

In early March, I shared a recommendation with my British readers on a company I cheekily called ‘The Tesla Killer’.

I was having a bit of fun, but the company’s technology and potential to dominate the EV truck market will probably give Elon Musk a few sleepless nights over the next few years.

Over the following 98 days, we saw an explosion in the stock price…

I told my readers to pocket the gain in early June…tucking away a 537% return in a little over three months. Not bad!

Although, let me remind you that they don’t all bang up like this one…and that past performance is not a reliable indicator of future results.

But you can see for yourself what is possible when you pick the right renewable stock at the right time.

You’ll learn more on this during my keynote, on Wednesday, 21 October…

Any industry reliant on technology eventually gets overhauled.

Companies that either produce fossil fuels…or rely upon them…are no different.

They have fought against their own redundancy using litigation, billions in lobbying dollars, and downright sabotage.

This war against their own obsolescence goes back over 100 years…

Few people know this, but way back in the early 20th century Thomas Edison and Henry Ford developed an electric vehicle…

Operating on a nickel iron battery, and able to go more than 80 kilometres on a charge, Ford believed it had a bigger future than his gas-guzzlers:

Electricity is the thing. There are no whirring and grinding gears with their numerous levers to confuse. There is not that almost terrifying uncertain throb and whirr of the powerful combustion engine. There is no water-circulating system to get out of order – no dangerous and evil-smelling gasoline and no noise.

What happened next?

Well, years of development finally came to nothing. And a fire in Edison’s workshop almost destroyed the valuable R&D.

Why?

At the time, Ford was a subsidiary of Standard Oil. Some believe the fire was a warning to put an end to the idea of electric cars replacing those chugging along with petrol-powered engines.

That may or may not be true. It’s impossible to say.

But the years of resistance, cover-ups and dirty tricks that followed this symbolic ‘electric moment’ that never was does make you wonder.

They have fought the rise of renewables tooth and nail.

From lying about their findings regarding climate change…

  • ‘Just as Big Tobacco did about smoking, ExxonMobil lied about what it knew about global warming’

MarketWatch

Attempting to hide a history of toxic dumping…

  • ‘How UK oil company Trafigura tried to cover up African pollution disaster’

The Guardian

To Volkswagen’s emissions scandal a few years back…

  • ‘How VW tried to cover up the emissions scandal’

BBC

To spending fortunes to block the inevitable transition into clean energy…

  • ‘Top oil firms spending millions lobbying to block climate change policies, says report’

The Guardian

I could go on and on. But you get the idea.

Big Energy and Big Auto have done everything they can to fight against progress.

And lost.

2020 is the year that their defeat has become resounding.

They are throwing in the towel. Pretty much every major auto manufacturer in the world has or is developing a line of electric vehicles…

And Big Oil is desperately scrambling to pivot into clean energy…

Some of the oil majors have invested heavily in renewables, such as wind and solar, as they look to transition towards cleaner energy sources

NS Energy

Finally, if you need any further proof which way the wind is blowing, look at this…the head of one of the biggest oil companies in history is practically admitting the fun is over:


Port Phillip Publishing

Source: Twitter

[Click to open in a new window]

So, you tell me.

Based on the evidence…

Where do you think the smart money is going?

This is your chance to put yourself on the right side of history

This is where registering for Port Phillip Publishing’s Beyond Oil conference could hand you a first-mover advantage in this market.

Because while this transition is more visible in places like Western Europe, the west coast of America, and even China…

…Australia is only just waking up to the transition.

But already, the signs are that renewables will take root fast Down Under.

According to the ABC…

Renewables could power most of Australia by 2040, Australian Energy Market Operator plan shows…’

If that turns out to be true, you are going to see an explosion in renewable technology, industry and companies down here over the next few years.

What a time to get involved as an investor!

And this is exactly why Woody asked me to take part in this conference — to bring my energy industry experience and expertise to this nascent market opportunity…

To show you where I think the big money is likely to be made — here and overseas — as the transition gathers pace…

And to help you navigate around some of the dodgy investments that invariably spring up in a bull market (like so-called ‘green funds’ that are anything but).

As a former energy analyst, journalist and trader…I have waited a decade for what is happening right now.

I’ve spent so much of my time researching it, travelling all over the world, investing in it, and scouting out the best opportunities.

In my considered opinion: it’s all coming together.

2020 has served as a lightning rod for clean energy investment…at the private, corporate and government level.

The tipping point draws close.

You cannot miss this moment.

Cheers,
James Allen