The public markets are getting excited about the future of low carbon fuel production. But, why?
What’s happening:
- Finding ways to produce low carbon fuel has become an important trend amidst a global push towards net zero emissions, which has led to multiple publicly traded companies beginning to make moves to expand their operations and production capabilities
Why it matters:
- Low carbon fuel is critical for the energy transition and also represents one of the best chances to decarbonize specific types of transportation that cause huge emissions of carbon dioxide such as aviation and heavy duty vehicles
Who is making moves:
- Brookfield Asset Management (NYSE: BAM) recently announced a billion dollar commitment to advancing new and existing projects being developed by ultra low carbon fuel producer Infinium
- Clean Energy Fuels (NASDAQ: CLNE) recently announced they are building the first ever private compressed natural gas fuelling station in Houston as part of an effort to help the Houston Metropolitan Transit Authority of Harris County transition their buses to renewable natural gas
- Gevo (NASDAQ: GEVO) previously announced they struck a deal with Shell to provide their racing teams with low carbon intensity fuel blend stock and also announced a multi hundred million dollar deal to acquire Red Trail Energy’s ethanol production plant to accelerate their sustainable aviation fuel production
Going deeper:
- FuelCell (NASDAQ: FCEL) also previously landed funding from Canada’s Clean Fuels Fund to accelerate the development of two of FuelCell’s new projects that are aiming to produce low carbon synthetic diesel fuel from zero carbon hydrogen
The intrigue:
- As the world looks to transition to new sources of low carbon fuel, there is a growing opportunity in cleaning up legacy energy infrastructure such as abandoned oil and gas wells which have landed enormous funding commitments from the government of the United States of America due to their harmful effects on the environment
