Investing for an energy transition
What is the best way for investors to decarbonise the global energy system? We argue this outcome is achievable by 2050. But a new ‘venturing’ model is needed, to incubate…
Ramping Renewables: Portfolio Perspectives?
…this question by constructing a mean-variance optimisation model. We find a c0-20% weighting to renewables can maximise risk-adjusted returns. 5-13% is ideal. But beyond a c35% allocation, both returns and…
Ramp Renewables? Portfolio Perspectives.
…question, by constructing a mean-variance optimisation model. We find a c0-20% weighting to renewables maximises risk-adjusted returns. The best balance is 5-13%. But beyond a c35% allocation, both returns and…
Methane emissions detract from natural gas?
This short modelcalculates the impact of methane emissions on the CO2/boe of burning natural gas, compared against coal. With methane emissions fully controlled, burning gas is c60% lower-CO2 than burning…
CO2 intensity of shale: breakdown by category?
…oil, across 14 different contributors, aggregating across a dozen different models constructed by Thunder Said Energy. $799.00 – Purchase Checkout Added to cart This data-file models the CO2 intensity of a typical…
Renewables: share of global energy and electricity by country?
…and solar in 2023 (chart below). California is similar, although the US overall generated 15% of its electricity from wind and solar in 2023 (TSE model here). Denmark is the…
Grid-scale battery costs: the economics?
Grid-scale batteries are envisaged to store up excess renewable electricity and re-release it later. Grid-scale battery costs are modeled at 20c/kWh in our base case, which is the ‘storage spread’…
Can carbon-neutral fuels re-shape the oil industry?
…laid out on 11-14, including opportunities to deflate costs using new business models and digital technologies. We find c10% unlevered IRRs well below $50/ton CO2 costs. What model should fuel-retailers…
Offshore wind costs are inflating?
…cart We model the incentive price for each project, i.e., the power price that is needed to earn a 10% levered but unsubsizided return. There is little evidence for deflation….
Electric Vehicles Increase Fossil Fuel Demand?
…granular details from the recent technical literature. Pages 6-9 model the exponential rise of electric vehicles, and how rapidly increasing manufacturing energy could outweigh slowly increasing fuel savings. Pages 10-13…