Frank Holmes: The Rise of Alternative Energy is a Boon for Copper

Resource Investing News

Frank Holmes of US Global Investors (NASDAQ:GROW) wrote about a report from energy policy group REN21 about the global status of renewable energy, noting that more and more renewables will be used as the world’s population continues to grow. He also noted that, according to Bloomberg New Energy Finance, roughly $8 trillion will be spent on renewables globally between now and 2040.

Frank Holmes of US Global Investors (NASDAQ:GROW) wrote about a report from energy policy group REN21 about the global status of renewable energy, noting that more and more renewables will be used as the world’s population continues to grow. He also noted that, according to Bloomberg New Energy Finance, roughly $8 trillion will be spent on renewables globally between now and 2040.

As quoted in the publication:

This is good news indeed for copper, necessary for the conduction of electricity in all energy technologies, whether they be traditional or alternative. The use of some carbon-emitting fossil fuels—coal, for instance—will likely drop off over the years, but copper will remain an irreplaceable component in our ever-expanding energy needs.

Global copper consumption is poised to increase not just because electricity demand is growing. New energy technologies typically require more of the red metal than traditional sources. Each megawatt of wind power capacity, for instance, uses an average of 3.6 tonnes of copper. Electric trolleys, buses and subway cars use about 2,300 pounds of copper apiece. Where we’ll see the most significant growth, though, is in the production of hybrid and electric cars, which use two to three times more copper than internal combustion engines.

Click here to read the full article from US Global Investors.

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