Sponsored article: Michael Hart writes how investors can balance returns and have a positive impact on the environment?
“Yes, my friends, I believe that water will one day be employed as fuel, that hydrogen and oxygen which constitute it, used singly or together, will furnish an inexhaustible source of heat and light, of an intensity of which coal is not capable” ― Jules Verne, The Mysterious Island
Immediate action is required to ensure the world´s future, that much is indisputable. The latest IPCC report is crystal clear about the state of the climate emergency. All greenhouse-gas emissions are to blame, but CO₂ emissions have the dominant role. If strong actions are taken to reach “net zero”, and sustained reductions in all greenhouse gases, things could be gradually reversed.
The momentum to address these issues has never been stronger, driven not only by public demand, but also by regulation and government support. Industry leaders, policy makers, and institutional investors have all gained awareness of their role to play in the energy transition.
This momentum is evolving the investment landscape fundamentally. For most treasuries and LGPS investors, investing in carbon-neutral products is becoming of paramount importance to members.
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Balance
Global GHG emissions are simply not stoppable under current commercially available large-scale technologies. There is an urgent need for innovation. Beyond funding renewable energy sources with a low carbon footprint, there is also the need to create an environmentally friendly energy “mix” that can supply the world´s continuously growing energy demand.
The question is: Can you balance returns and have a positive impact on the environment?With “white natural hydrogen and the right expertise, the potential is there.
In the case of hydrogen, as a product it is widely considered a key for the energy transition, but not if it is obtained with current methods that allow for fugitive methane emissions when trying to lower CO2 emissions, (e.g. grey, brown, blue hydrogen) or that are clean but still require a massive amount of electricity for production (green hydrogen).
However, there is now a new contender, which is naturally occurring and renewable, that is seen as the net zero clean fuel’s white knight: white natural hydrogen is the ultimate clean hydrogen resource; renewable, low-cost and clean scope 3.
Opportunity
Though natural white hydrogen flows are well documented, and the market demand is wide and growing, extracting H2 from the ground is a complex challenge. That is why leveraging unique field proven ESG experience in E&Ps to provide environment friendly and economic solutions is the path to accomplish measurable positive impact.
Hydrogen’s path to net zero actively addresses four of the UN’s SDGs (sustainable development goals):
- Affordable Clean Energy;
- Industry, innovation and infrastructure;
- Responsible consumption and productio;
- Climate action.
Climate risk is real but it can also be a good risk adjusted investment opportunity, as we try to find ways to support and finance the energy transition.
Michael Hart is a director at Beam Earth.
Photo by akitada31 from Pixabay
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