The Factors Pushing To Renewable Energy Sources

Lately, there have been some big decisions in the circle of traditional fossil fuel producers, all related to their long-term plans and investment direction switch to renewable energy. And it may be said that those are some significant amounts of capital. The final plan is a carbon-free future. In the meantime, that means increasing focus and investment into low-carbon businesses and decreasing both investment and focus in oil and gas.

Is This A Faster Turn By Traditional Fossil Fuel Producers To Renewable Energy?

BP's BP newly appointed CEO, Bernard Looney, stated that 2050 is the year when BP wants to reach zero greenhouse gas emissions. That means the future focus will be massive investments in renewable energy, including solar, wind and biofuels.

BP, the sixth biggest energy company in the world, is not the only one. Shell RDSA, Total TOT, Equinor EQNR, and others like mining giant based in Vancouver Teck Resources TECK are also rerouted great investment amounts into renewable energy, to achieve the goal and be carbon neutral by 2050.

Future Energy Companies

Although fossil fuels and carbon will take some time to be completely taken out, these companies' future investments will be probably focused on either manufacturing wind turbines, solar panels, as well as thermal and hydroelectric energy. Some great examples are Vestas Wind Systems VWDRY, the number one manufacturer of wind turbines and AGL Energy AGLNF, whose business activities are both generating as well as retailing electricity from the renewable energy mix.

Why This Increase In Pace?

Some government policies had to do something with those decisions. But that was not the main driver. People started requesting more and more that we focus on sustainable energy. When we say people, that also means investors. The whole world is turning and facing in that direction, so this is following the money path.

2019 was the record amount year when it comes to purchased clean energy through power purchase agreements. Companies from 23 countries closed contracts to purchase 19.5 gigawatts of power, which is an increase of 44% compared to 2018. Some of the biggest buyers are well-known tech giants, including Google GOOG, Facebook Inc FB and Amazon.com, Inc. AMZN. All of them have been pressured both internally and externally. Their employees keep demanding to do more when it comes to investing and using clean energy.

The latest move from Amazon's CEO Jeff Bezos, to start a $10 billion Bezos Earth Fund is a great example. It will provide support for further development of the field as well as be a great example of how it should be done.

Until We Wait…

These are some capital movements, and they should be acknowledged and continued of course. Maybe, there are some smaller actions we can take as well. For example, Worksport, and its parent company Franchise Holdings International FNHI, can help us with its new line of tonneau covers, which are not only a great accessory for pick-up trucks but a little step in the solar segment. They announced this morning to apply for the Terravis trademark relating to their solar cover. Once their tonneau cover is connected into electric engines, currently owned pick-up trucks can benefit from solar technology, no matter the model, make and year. No action is too small. Something to think about.

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