The Clean Energy Opportunity
The Company’s primary strategy is to acquire interests in and to own, assist and manage clean energy companies and projects, including renewable energy projects and projects that create environmental benefits through greenhouse gas emission reductions.
Renewable energy can generally be defined as energy (such as electricity, transportation fuels, sources of process heat, etc.) derived from resources that are regenerative or, for practical purposes, cannot be depleted
Renewable energy technologies may be broadly divided into two categories:
Production of electricity
From sources such as wind, solar, geothermal, hydro, biomass, or municipal wastes
Production of transportation fuels
Such as ethanol and biodiesel
Renewable energy is generally considered to involve relatively less environmental impact than traditional sources of energy.
The combustion of renewable fuels typically results in a reduction of greenhouse gases (CO2, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulphur hexafloride) produced per unit of energy when compared with traditional sources of energy
Several factors are acting to increase the demand for renewable energy.
- Increases in the price of fossil fuels have led to a significant improvement in the cost competitiveness of renewable energy versus traditional, non-renewable, sources.
- Renewable energy is also receiving support due to its perceived environmental benefits, especially the contribution which renewable energy resources could make in efforts to reduce emissions of greenhouse gases.
- Furthermore, in addition to the traditional economic value of energy products and related by-products such as thermal energy and steam, there are additional revenue sources potentially applicable to renewable energy products, including tax and other financial incentives and carbon credits.
The Company believes that all of these factors are contributing to an increased demand for clean and renewable energy, creating a positive environment for investing in clean, and in particular, renewable energy projects.