How to Profit From the Death of Fossil Fuels
How to Profit from the Death of Fossil Fuels
5 Reasons Why “Waterfuel” is a White-Hot Investment Opportunity in 2020
Congratulations on claiming your free report.
You’re about to discover…
- Why fossil fuels are doomed
- Why “Waterfuel” is perfectly positioned to replace them
- What so called “waterfuel” really is
- Why this could mean big money for early investors
Let’s dive into the details.
Here are 5 reasons I believe “waterfuel” is set to replace fossil fuels.
Reason 1: There is global recognition that we must drastically reduce carbon emissions to halt climate change
No matter if you’re watching the news or casually using social media, it won’t take long before you stumble across the topic of climate change.
From Extinction Rebellion to Greta Thunberg, climate change is a hot topic on everyone’s lips.
This year has seen more chat, more policy and more concern about the climate crisis in the public discourse than any I can recall.
And for good reason.
Scientists and experts agree we are fast reaching a point of no return.
We either act now…
Or suffer the consequences.
Large parts of the world could become uninhabitable.
This would destabilise many countries and create hundreds of millions of climate refugees.
The public are increasingly getting involved and demanding change.
Concern among UK voters about the state of the environment has hit its highest level in decades.
Climate change and the environment have become key battlegrounds in the general election, with all political parties seeking to position green policies at the front and centre of their campaigns.
In October 2019 Vandana Hari, founder of Singapore-based Vanda Insights, which tracks energy markets, climate activism has gone “mainstream”.
“From 16-year-old Greta Thunberg’s tongue-lashing of world leaders at the U.N. for ‘stealing’ her dreams and childhood to the rash of disruptive protests by the Extinction Rebellion activist group across the U.S. and Europe in recent weeks, activists have been banging the drums louder than ever.”
On Friday 20 September 2019, 4 million people took to the streets in 170 countries in what is thought to be the largest single-day environmental protest in history.
In boardrooms, the world’s largest hedge funds and pension funds are fleeing from fossil fuel companies like rats from a sinking ship.
As Hari says,
“It is not just businesses involved in the “dirty” coal industry they are divesting from – oil and gas producers and refiners are also becoming anathema for many investors.”
It seems politicians, business leaders and the great British public can all agree on one thing…
The reign of fossil fuels is over.
As the Chief Exec of Ireland’s Mainstream Renewable Power company put it:
“Fossil fuels have lost. The rest of the world just doesn’t know it yet.”
According to Deirdre Cooper, a portfolio manager of the Investec Global Environment Strategy, opening up in front of us is a $2.4trn per annum climate change opportunity.
“There is no denying that the climate crisis is a matter of urgency … However, as the planet works towards the UN’s now nigh impossible global target of limiting temperature rises to 1.5 degrees Celsius, we are witnessing vast flows of capital which will create a multi-year tailwind for selected companies driving and benefiting from the energy transition.”
Reason 2: The UK government is under intense pressure to hit its emission targets
As soon as next year, the British government is going to be forced to take drastic action to address this national emergency.
Quite simply, we’re on track to miss the mandated limits in carbon emissions in the decade through to 2032.
In 2019 the government confirmed it not only remains on course to miss its carbon targets for the mid-2020s onwards, but the shortfall against the UK’s legally-binding carbon budgets has actually worsened.
The report by the government’s department for Business, Energy and Industrial Strategy (BEIS) from April 2019, revealed that while the UK is on track to comply with the current third carbon budget, which runs from 2018 to 2022, it is expected to miss the fourth and fifth carbon budgets by a wider margin than previously expected, based on current policies.
In fact, the BEIS said there were “projected shortfalls against the fourth and fifth carbon budgets of 139 and 245MtCO2e respectively”, suggesting the country will “miss carbon targets for the 2023 to 2027 period by 5.6% and then miss the budget for the 2028 to 2032 period by 9.6%”.
For a government that has long talked up its green credentials, this is terrible news.
What’s more, the decarbonisation challenge faced by the government increased in June, after it pledged to cut greenhouse gas emissions to almost zero by 2050, under the terms of a new plan to tackle climate change.
What all this means is that the government needs to find a way – or ways – to cut greenhouse gas emissions by a whole lot more than it’s doing at the moment.
Let’s be clear: missing the targets is not an option for the government.
No government will want that on its record, especially one that has talked such a good game on climate change.
But it’s more than PR.
By missing the targets, the government will be at risk of legal action under the Climate Change Act 2008, which says ministers must plan to meet UK carbon budgets.
An important group lobbying the government are pushing towards a new type of energy
Established 11 years ago under the Climate Change Act, the Committee on Climate Change (CCC) is an independent, statutory body that is right at the centre of UK climate policy.
In fact, in policy circles, its analysis defines the discussion.
That’s because the government runs a tangible risk of a judicial review if it does not follow the CCC’s policy advice.
On 15 October 2019 the government announced it “will go further and faster to tackle climate change, in response to recommendations from the Committee on Climate Change.”
What this means is that it’s worth closely following what the CCC says to get an early steer on likely governmental policy.
And the verdict is in on the paths the government should take to speed up the UK’s emissions cuts.
In fact, according to the CCC, there’s one particular gaseous substance that could form the backbone of any substantive efforts to cut emissions across energy generation, transportation, industry and heating.
So far I’ve been referring to this substance as “waterfuel” but it is more correctly known as…
In fact, in its last report in May, the CCC mentioned “hydrogen” over 100 times, which was quite something considering the report was over 270 pages long.
Hydrogen, in fact, was one of the central themes to emerge from the CCC report, which said it could contribute to the UK actually ending its contribution to global warming within 30 years by reducing national greenhouse gas emissions to zero by 2050.
The government is considering the CCC report and, with a history of respecting the advice from the independent body, is expected to adopt most or all of its recommendations. That could see it implement policy to back multi-billion pound investments in the hydrogen economy.
Hydrogen offers climate change hope
In October 2019, my colleague Kit Winder attended an energy conference on St James’s Park.
Gathered there were politicians, National Grid operators, Committee on Climate Change scientists and energy company executives.
There was a lot of interesting debate on a range of topics, but only one thing really united the group.
It’s pretty rare to see policymakers, company execs and scientists agreeing about anything, but he said it was like being in an echo chamber. One after another, they proclaimed the benefits and importance of this simple element. He’d never come across anything like it, to be honest.
One thing they all highlighted in particular was that we must replace natural gas with hydrogen for the entire country, within the decade. That’s if we want to have any chance of meeting our climate objectives in the years to come.
Reason 3: Hydrogen is the perfect answer to a whole range of problems
The Electrochemical Society has dubbed it the “holy-grail of clean-energy.”
Wired magazine claims it can “fuel the future.”
The Guardian called it “the ultimate green fuel.”
As far back as 2008 theEconomist magazine simply said it’s “the future of energy.”
It’s little wonder. The case for hydrogen is extremely strong, just look at some of its credentials…
This low-carbon alternative fuel is three times more powerful than oil… and 100% green.
Unlike natural gas, hydrogen is a zero-emission fuel as it emits only water when burned. Either you convert natural gas into low-carbon hydrogen, or you convert excess renewable energy into a hydrogen gas.
Experts estimate if we started using it for heating, we would remove almost a fifth of the UK’s total carbon emissions.
This would have an impact similar to removing all the cars from London streets.
Lawmakers from across the political spectrum are in agreement: hydrogen can significantly reduce the nation’s greenhouse gas emissions and help transition to a low-carbon system.
The end uses for Hydrogen are many…
- It can power cars, buses, trains and ships…
- It can light and heat your home far more efficiently than gas…
- It can run trucks and part of factories…
- It can even jet aeroplanes across the world…
As hydrogen-fuelled cars produce water vapour instead of greenhouse gases from their exhaust, the CCC have said all new cars and vans should be electric or run on fuels such as hydrogen by 2035 at the latest.
Former Saudi Arabian oil minister Sheikh Ahmed Zaki Yamani said it best:
“The day they use [hydrogen] for transportation, this is the day that oil disappears.”
I couldn’t agree more.
The CCC have also suggested hydrogen as a potential alternative to natural gas that could be piped by adapting the current transmission network for use in periods of peak electricity and heating demand.
Amazingly, hydrogen fuel is so powerful that engineers are designing hypersonic planes that could fly from London to Sydney in less than 4 hours.
Boeing is already testing the technology for the U.S. military. Their prototype, called Phantom Eye, will fly for up to ten days and carry a payload of 2,000 pounds.
Unlike fossil fuels, Hydrogen isn’t scarce.
In fact, it’s the most abundant element in the universe.
Whilst hydrogen doesn’t exist in “free” form, it’s created by turning water into hydrogen, using a process called electrolysis.
That’s right, it’s created from plain, regular water which we won’t be running out of any time soon.
It’s clean, it’s flexible and it’s abundant
It’s the perfect replacement for fossil fuels.
And that’s why the UK government is set to implement policy to back multi-billion pound investments in the hydrogen economy.
Reason 4: The costs of producing Hydrogen are plummeting
Simply put, oil and natural gases have reigned supreme for over a century because they are cheap.
As I mentioned, hydrogen is the most plentiful element in the universe and produces no carbon emissions.
But it doesn’t exist in “free form” and so far, the production of hydrogen gas on a commercial scale has proved problematic.
Producing hydrogen gas is difficult and expensive.
It wasn’t economically viable.
It was the major obstacle getting in the way of the widespread use of hydrogen.
Thanks to scientific breakthroughs the cost of producing Hydrogen is plummeting.
It could soon become a cheap commodity.
Bloomberg New Energy Finance predicts that the cost of producing hydrogen using renewable energy will fall by a whopping 80% by 2030.
That because the cost of renewable energy has already fallen dramatically (solar 85% since 2010 and wind 49% since 2010), but also that the technology for electrolysis is falling in price too.
Kobad Bhavnagri, BloombergNEF’s head of special projects says “Once the industry scales up, renewable hydrogen could be produced from wind or solar power for the same price as natural gas in most of Europe and Asia,”
“These production costs would make green gas affordable and puts the prospects for a truly clean economy in sight.”
The falling costs of hydrogen is the key to a green energy future that once seemed largely unattainable.
Reason 5: The UK Hydrogen switch over can be fast
Hydrogen can literally replace natural gas and oil within our existing energy infrastructure.
In fact, the UK national gas grid was originally built for it.
The existing gas grid would need only minor upgrades because it was actually originally designed for hydrogen before the North Sea boom provided a flood of cheap natural gas to burn instead.
Retired oil and gas platforms in the North Sea can also be used to generate hydrogen.
Not only that we could use existing pipelines to bring it ashore.
Which means the UK “switchover” can be almost instant.
MPs on the influential Business, Energy and Industrial Strategy Committee have said the rules should be changed as soon as later this year to allow hydrogen into the natural gas grid.
Quite simply, the UK is looking to replace natural gas sooner than many will expect, leaving us with a window of opportunity right now to take advantage before the government presses “go” on its plans.
How can you profit?
As you can see, money is already flowing to this market. It’s happening right now.
But it’s just the beginning. The hydrogen economy is about to go vertical.
As the world shifts to hydrogen, the demand for hydrogen production will skyrocket.
Big Oil companies like BP, Total and Shell are involved in the hydrogen market.
So are major car manufacturers such as BMW, General Motors, Honda, Hyundai and Toyota.
Amazon, Walmart, Anglo American and DHL are also getting involved.
World governments are investing too.
- Germany is investing $110 million
- France has a €100 million investment plan
- In California, another $900 million project is underway
- The 2020 Olympic Games in Tokyo is planned to be powered by Hydrogen
Morgan Stanley and McKinsey predict Hydrogen can create a new economy worth $2.5 trillion per year.
And for Britain… it could kick start an energy revolution worth billions.
According to scientists and economists the potential benefits for the UK “could easily equal the whole production of North Sea oil.”
It is perhaps the biggest market disruption the world will ever see.
As far as I can see, all arrows point one way, and that’s a huge increase in hydrogen’s importance in the UK and globally, and in every scenario where that’s true, there will be companies that will profit enormously.
The opportunity for stock market investors is huge.
An early stage ‘seed-stake’ in the right business could pay off big time.
I believe I have found a company that is a RED HOT BUY!
In fact, I am just putting the final touches on an urgent briefing about this company so that you can decide for yourself.
You’ll discover exactly why I think this company is set to go vertical in the Hydrogen boom…
And exactly how you can make the maximum profits from this situation.
Keep a very close eye on your inbox in the coming days.
Editor, Exponential Investor