The Essex GEOS Clean Slate Issue 2

The Essex GEOS Clean Slate

Essex GEOS | Global Environmental Opportunities Strategy

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A bi-weekly synopsis of articles and blogs on new technologies, recent developments and other items of interest in the clean tech and new energy arena. This newsletter is intended to provide food for thought and is not intended in any way as an investment recommendation in any of the companies or technologies mentioned herein. Please see further disclosures at the end of this newsletter. Please visit our website at www.essexinvest.com. By clicking on the links below, you will be redirected to websites maintained by third party providers.

 

Water Strife

When people discuss environmental issues, often it is assumed that we are discussing problems that will not be significantly impactful for many decades or generations. But that is not the case. In many parts of the world, the social order is on the verge of imminent breakdown due to environmental challenges happening today. One such instance is the depletion of water resources in South Africa. According to a recent NY Times article, Cape Town, South Africa is approaching Day Zero in the next few months. Day Zero is the time when the city’s water supply runs dry and the supply of piped water to homes and businesses is turned off. This emphasizes the continued need for investment in better infrastructure and water treatment. Economic and social chaos is expected.

https://www.wunderground.com/cat6/its-true-cape-towns-water-supply-three-months-away-shutdown

 

Next Generation Batteries

The opening ceremony of the Winter Olympics in PyeongChang featured an amazing display of drones. We’re not sure what battery technology was powering those drones, but there is a local technology company named SolidEnergy Systems based in Massachusetts that is developing next generation batteries for use in such drones. SolidEnergy’s technology, lithium metal, which eliminates the need for the liquid electrolyte used in traditional lithium ion batteries, promises twice the energy density of current generation lithium ion batteries with greater safety. There are many companies working on lithium metal batteries (including Toyota Motors) with the biggest hurdles being cost, stability and the ability to scale to larger battery sizes. Most industry experts believe that we are a decade away from large-scale commercial use of lithium metal batteries.

https://www.greentechmedia.com/articles/read/a-new-lithium-metal-battery-takes-flight-in- drones#gs.9CcOxQo

 

The Ultimate Endorsement of Renewable Energy?

The Middle East, the world’s largest exporter of oil, is making a huge shift to renewable energy. According to Bloomberg New Energy Finance, Saudi Arabia intends to install more than 50 gigawatts of solar energy capacity over the next 20 years while Dubai targets 75% of energy production will be from renewables by 2050. The cost of energy from solar projects contracted in Dubai last year is expected to be less than three cents per kilowatt hour, which is among the cheapest energy cost from any source worldwide. While Saudi Arabia has been talking about making an investment in renewable energy, the country finally appears that it is moving forward in a big way:

https://www.nytimes.com/2018/02/05/business/energy-environment/saudi-arabia-solar- renewables.html

 

Everything You Wanted to Know About Blockchain But Were Afraid to Ask

The cryptocurrency bubble appears to have burst (at least in the short term) but the underlying blockchain technology continues to gain interest. Blockchain is an encrypted, distributed ledger technology that has the potential to revolutionize many industries, including clean energy. There are already instances of blockchain being used to manage renewable energy credits or create smart energy contracts as discussed in a recent issue of MIT Technology Review. For further reading, Venture capital firm Andreesen Horowitz has published a “Crypto Canon” with organized links to everything related to blockchain.

https://www.technologyreview.com/s/609077/how-blockchain-could-give-us-a-smarter-energy-grid/

 

https://a16z.com/2018/02/10/crypto-readings-resources/

 

Corporations Continue to Commit to Renewable Energy

Over the past few years, we have highlighted multi-national corporations that have deployed capital to power their operations using clean energy given rapidly improving economic returns as well as sustainability image enhancement. Late last month, iconic North American consumer products company Nike announced it will be powering all of its North American operations with renewable energy, after it signed a major agreement with Avangrid Renewables, and its large wind farm in Texas.

http://www.climateactionprogramme.org/news/nike-goes-100-renewable-in-north-america

 

Important Disclosures:

The opinions and analyses expressed in this newsletter are based on Essex Investment Management Company, LLC’s (“Essex”) research and professional experience, and are expressed as of the date of our mailing. Certain information expressed represents Essex’s opinion and assessment at a specific point in time and is not intended to be a forecast or guarantee of future results, nor is it intended to speak to any future periods. Essex makes no warranty or representation, express or implied, nor does Essex accept any liability, with respect to the information and data set forth herein, and Essex specifically disclaims any duty to update any of the information and data contained herein. This newsletter is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase any security or investment product, nor does it constitute a recommendation to invest in any particular security. Any individual securities listed herein do not currently represent any securities purchased, sold, or recommended to clients.

An investment in securities is speculative and involves a high degree of risk and could result in the loss of all or a substantial portion of the amount invested. The reader should not assume that investments in the securities described were or will be profitable. Past performance is not indicative of future results.

The information and data in this newsletter does not constitute legal, tax, accounting, investment or other professional advice. Certain information contained herein has been obtained from third party sources and such information has not been independently verified by Essex. No representation, warranty, or undertaking, expressed or implied, is given to the accuracy or completeness of such third party information

Any projections, market outlooks or estimates contained herein are forward-looking statements and are based upon certain assumptions. Other events which were not taken into account may occur. Any projections, outlooks or assumptions should not be construed to be indicative of the actual events.