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HIGHLIGHTS:
- Significant progress made on finalising a Term Sheet with Uniper and Norwegian Hydrogen for a Hydrogen Sale and Purchase Agreement (SPA) outlining key commercial terms, including targeting a 10-year offtake for over 40,000 tonnes per annum of hydrogen. Execution is imminent and expected to be executed after the European winter holiday period.
- Completion of the Fiska Facility sale expected around 1st January 2025 will enable Provaris to move forward with a lease agreement with the new owners and finalise the purchase of robotic laser- welding requirement to restart its Prototype Tank fabrication and testing program.
Term Sheet for Hydrogen Supply and Offtake progressing towards execution
During December 2024, Provaris , together with Uniper and Norwegian Hydrogen, made significant strides towards the finalization of a Term Sheet that outlines the key terms for negotiation of a long term Hydrogen SPA. This agreement targets a 10-year offtake contract for over 40,000 tonnes per annum of renewable green hydrogen from the Nordics to Germany.
The Term Sheet represents a critical milestone in Provaris’ plans to establish reliable, long term, and low cost hydrogen supply utilising Provaris’ proprietary H2Neo carriers and H2Leo barge technology.
The completion of the Term Sheet is imminent however final execution may be slightly delayed by the winter holiday period in Europe, which concludes on 2 January 2025. The Term Sheet also supports discussions established with shipyards for newbuilds and shipowners for Time Charter of the carriers.
Provaris and Uniper continue to focus on optimal shipping, compression, and import terminal solutions in North-West Europe, ensuring a flexible and efficient transport network. The collaboration with Norwegian Hydrogen, including the Fjord H2 project and other Nordic sites, aims to provide RFNBO-compliant hydrogen delivered in compressed form. These initiatives support Uniper’s hydrogen portfolio requirements and align with Provaris’ vision of delivering cost-effective, low-emission supply chains from production to end-user markets.
Restart of Prototype Tank Program at Fiskå Facility and completion of final Class Approvals.
Provaris has maintained regular engagement with the secured lenders and their appointed Advisor regarding the ongoing sale process of the Fiskå Facility and associated assets. While the process has taken longer than initially anticipated progress has been achieved over the past 6 weeks with finalization and title transfer to the new owner anticipated on or around 1st January 2025.
Securing a lease agreement for a portion of the Fiskå Facility’s production floor and associated office space will provide for a resumption of the Prototype Tank fabrication and testing program. The lease is close to finalization and will provide ample room for future growth, including the potential production of small-scale hydrogen storage tanks that can be an important step towards improving the operational economics for industrial hydrogen users.
Concurrently, Provaris has advanced negotiation of the key terms for an asset purchase agreement to acquire the installed Production Cell (including robotic arms, laser-hybrid welding equipment, pedestals, jigs and related tools) essential for the Prototype Tank construction. Owning these valuable production assets and associated intellectual property will strengthen Provaris’ manufacturing capabilities in Norway and potential licensing opportunities within Europe and Asia.
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This article includes content from Provaris Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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Provaris Energy
Investor Insight
Provaris presents a unique and attractive investment proposition in the rapidly expanding green hydrogen sector in Europe. With its proprietary technology, strategic partnerships and integrated business model, Provaris is well-positioned to capitalize on the growing demand for clean energy solutions.
Company Highlights
- Provaris is a leading innovator in the green hydrogen sector, leveraging its proprietary compressed hydrogen technology to develop sustainable, clean energy supply chains across Europe.
- The company combines proven technology and unique IP for cost-effective hydrogen storage and transport solutions, with a first-mover advantage through its proprietary ship design and low-cost delivery.
- Provaris has established strong strategic partners across Europe, enhancing its credibility in delivering hydrogen to market In addition to green hydrogen, the company is leveraging its tank IP for application into the established CO2 storage and shipping market.
Overview
Provaris (ASX:PV1), a leading innovator in the green hydrogen sector, is well-placed to become integral to the European green hydrogen supply chain through its groundbreaking compressed hydrogen solutions. The company focuses on developing regional projects that span the entire value chain, from production to export, with a particular emphasis on delivering hydrogen with the highest energy efficiency and the lowest cost.
With a vision to develop a portfolio of integrated green hydrogen projects, Provaris leverages its proprietary tank IP and innovative ship design, with a focus on collaborating with world-class partners.
Compression supports the development of simple, scalable and energy-efficient green hydrogen supply chains for the European market.
Provaris stands at the forefront of the green hydrogen revolution, dedicated to developing innovative and efficient supply chains for zero-carbon energy in the European region. With its rapid adoption of green hydrogen, the European market presents a golden opportunity for Provaris. As countries across the continent seek to decarbonize their economies, the demand for sustainable energy sources has skyrocketed. Provaris’ use of compressed hydrogen technology offers a compelling solution to the logistical challenges associated with hydrogen distribution, replacing complexity with simplicity to lower the delivered cost.
Core Product: H2Neo Carrier
At the heart of Provaris’ innovative H2Neo carrier solution is its proprietary compressed hydrogen technology. The H2Neo offers a more efficient and cost-effective alternative to traditional methods of hydrogen storage and transport. These carriers are designed to address the growing global demand for hydrogen while overcoming the logistical challenges associated with green hydrogen distribution.
Key Features and Benefits
- Enhanced Safety: Provaris’ compressed hydrogen technology prioritizes safety in storage and transportation.
- Cost-effectiveness: By eliminating the need for complex liquefaction or ammonia synthesis processes, the company's solutions reduce overall costs.
- Scalability: The technology is adaptable to various project sizes, from regional supply chains to large-scale international exports.
- Environmental Sustainability: Compressed green hydrogen aligns with global efforts to reduce carbon emissions and transition to cleaner energy sources.
Recent Concept Design Study reaffirms simplicity and efficiency of compressed hydrogen enables low-cost supply for Europe.
Innovative Vessel Designs
Complementing its innovative compressed hydrogen technology, Provaris is developing new vessel designs specifically tailored for hydrogen transport. These specialized ships are engineered to safely and efficiently carry compressed hydrogen across maritime routes, opening up new possibilities for international green energy trade.
CO2 Storage and Transport
As part of its commitment to sustainable energy solutions, Provaris is expanding its portfolio to include CO2 storage technologies. This strategic move aligns with the company's core competencies in gas handling and storage, while addressing the growing demand for large scale CO2 storage and transport solutions in the European market, and beyond.
Provaris is leveraging its expertise in compressed gas handling to develop innovative CO2 solutions, through the following strategies.
Adapting Hydrogen Tank Designs: The company is modifying its proprietary compression systems to efficiently capture and store CO2 from industrial processes.
Collaboration with Global Partner: Provaris announced a Joint Development Agreement with Yinson Product AS, a global energy infrastructure and technology company, which is developing CO2 infrastructure and supply chains.
Extension to Onshore Storage Solutions: Utilizing its experience in gas storage, Provaris is developing land-based facilities for intermediate CO2 storage before permanent sequestration.
Strategic Partnerships
At the forefront of Provaris Energy's European strategy is a groundbreaking Memorandum of Understanding (MoU) with Norwegian Hydrogen and Germany-based international energy company Uniper Global Commodities. This tripartite agreement marks a pivotal step in developing hydrogen supply chains, leveraging each partner's unique strengths.
The collaboration strategically capitalizes on the Nordic region's geographical advantages, facilitating efficient hydrogen distribution across Europe, with a particular focus on the German market. Germany is reliant on the import of over 70 percent of its hydrogen demand by 2030. This partnership not only underscores Provaris' role as an enabler for hydrogen transport at scale, but also a commitment by Uniper to support the development of Provaris’ unique approach.
A significant milestone is expected in the December 2024 quarter, including a maiden Term Sheet for supply and offtake.
Provaris also has a joint development agreement with Yinson Production, a global energy infrastructure and technology company, to explore CO₂ storage and marine transportation solutions, leveraging Provaris' hydrogen tank technology for enhanced carbon capture capabilities.
In The Netherlands, Provaris is collaborating with Global Energy Storage (GES) to develop a bulk-scale hydrogen import facility within Rotterdam’s global energy hub. The agreement involves the completion of a comprehensive prefeasibility study to demonstrate the technical and economic viability of berthing and unloading of Provaris’ H2Neo compressed hydrogen carriers. Provaris will be responsible for the transportation of the hydrogen in the H2Neo carriers and GES will be responsible for the discharge and injection into the hydrogen grid.
Management Team
Martin Carolan – Managing Director & CEO
Greg Martin – Chairman
Andrew Pickering – Non-executive Director
David Palmer – Non-executive Director
Per Roed – Chief Technical Officer
Mats Fagerberg – Business Development, Europe
Garry Triglavcanin – Product Development Director
Norman Marshall – Group Commercial Manager
John Stevenson – Group Financial Controller
Jessica Roed – Operations Manager, Norway
Cleantech Market Forecast: Top Trends for Cleantech in 2025
The escalating energy demands of today's increasingly digital world are pushing the limits of the power grid in the US and elsewhere, necessitating a faster shift toward sustainable energy solutions.
What does the future hold for the cleantech industry as it leads the charge in addressing these issues in 2025?
Here the Investing News Network explores the implications of rising energy consumption, the role of cleantech innovation in meeting this demand and how government policies could help or hinder the sector.
AI explosion to boost demand for clean energy
Clean energy has always been part of the energy transition, but as the artificial intelligence (AI) sector gains traction the importance of green sources of energy is becoming increasingly crucial.
AI energy requirements are set to surge dramatically, potentially straining current energy grids and infrastructure. A December report from Grid Strategies predicts energy providers will need to add up to 128 gigawatts (GW) of new capacity by 2029 to keep up with demand, a noteworthy increase from an estimate of 39 GW just last year.
Data centers are projected to consume up to 35 GW by 2030. Innovative sustainable energy solutions and cooling technologies will need to be developed to meet demand without derailing decarbonization efforts.
The AI industry’s energy demands are being further amplified by the construction of new chip-manufacturing facilities.
To promote chip production to the US, President Joe Biden's Chips and Science Act has pledged billions to Intel (NASDAQ:INTC), Taiwan Semiconductor Manufacturing Company (TSMC) (NYSE:TSM) and Samsung Electronics (KRX:005930) to help them expand their American production capacity.
Intel is updating its facilities in Oregon, New Mexico and Arizona, and has plans to finalize new fabs in Ohio in the coming years. TSMC plans to eventually operate three fabs in Arizona, while Samsung is expanding its operations in Texas to include two factories, a research and development factory and a packaging facility.
These new facilities, with their substantial energy needs, will increase an already significant strain on existing infrastructure. Demand will necessitate upgrades to the existing power grid and require expansions to accommodate the increased load of multi-year operations.
The source of this additional energy will be a crucial consideration, as a shift towards renewable energy sources will be essential to mitigate the environmental impact of ever-growing energy demands.
Nuclear and geothermal energy emerged as two promising carbon-free options in 2024. Microsoft (NASDAQ:MSFT), for instance, has signed a 20 year power purchase agreement with Constellation Energy (NASDAQ:CEG) to purchase carbon-free electricity from the soon-to-be-restarted Unit 1 reactor at Three Mile Island.
Similarly, Amazon’s (NASDAQ:AMZN) Climate Pledge Fund joined a US$500 million funding round in October to back a startup company, X-energy, that’s developing a Generation IV high-temperature gas-cooled pebble-bed nuclear reactor. X-energy's Xe-100 is a small modular reactor (SMR) that is more compact, simpler and safer than traditional reactors.
News of Amazon’s deal broke just a week after Alphabet’s (NASDAQ:GOOGL) Google announced a power purchase deal with Kairos Power to deploy 500 megawatts (MW) of nuclear power by 2030 using reactor technology.
More recently, on December 4, Meta (NASDAQ:META) communicated a request for proposals to nuclear developers, saying it is seeking up to 4 GW of new nuclear power for its data centers. Welcoming collaboration from both SMRs and larger nuclear reactors, Meta emphasized the need for early engagement and scaled deployments to reduce costs.
Oklo (NYSE:OKLO), a company with strong ties to OpenAI CEO Sam Altman due to his early investment and role as chairman of the board, signed a deal in late December with data center operator Switch to build SMRs to power its data centers. Switch’s clients include Google, NVIDIA (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA), among others.
In addition to nuclear energy, geothermal energy is a viable solution for data centers' high energy consumption. Google's partnership with NV Energy leverages what’s known as a Clean Transition Tariff to secure 115 MW of geothermal power for Google’s data centers, outsourced from Fervo Energy's enhanced geothermal system.
Meta is also pursuing geothermal sources for its energy needs, signing a power purchase agreement with Sage Geosystems in August. The first phase of the project is scheduled to become operational by 2027.
Furthermore, the increased power consumption of AI technologies necessitates more efficient cooling methods. According to analysis from Zainab Gilani, a research associate at the Cleantech Group, liquid cooling offers superior performance and scalability compared to traditional air cooling, particularly direct-to-chip cooling.
Companies like NVIDIA and Intel are working to advance liquid cooling solutions for data centers, including collaborating with cooling technology providers like CoolIt Systems.
In its global outlook report for 2025, BlackRock explains how investors could benefit from this trend, highlighting the utility sector as a potentially attractive avenue for indirect investment in the AI boom.
EVs, tariffs and trade under Trump
The EV market grew globally in 2024, but in the US it faces a complex and uncertain landscape.
While consumers have more EV options than ever after a wave of newly introduced models from automakers like Ford (NYSE:F), Toyota (NYSE:TM) and Rivian (NASDAQ:RIVN), adoption initiatives put in place by the Biden administration are at risk of being defunded or repealed under President-elect Donald Trump.
For example, Trump wants to eliminate the Inflation Reduction Act, although he would need Congressional approval.
In a December interview with Yale Environment 360’s Elizabeth Kolbert, Professor Leah Stokes of the University of California Santa Barbara said corporate lobbying will be instrumental in retaining some aspects of the act.
“The things that will be on the table are largely (clean energy) tax credits because the grants will be mostly out the door by the time the Biden administration wraps up at the beginning of January,” she said. “These tax credits are benefiting companies, and you’re already seeing the reporting that for even the most vulnerable tax credits, which I would assume are the EV tax credits, there’s a constituency out there trying to defend those. Companies have made investments that take years to really come to fruition, and they can’t really turn around on a dime.”
Tax incentives to spur investment have also created thousands of jobs, particularly in Republican states. This may encourage Trump to selectively choose which programs to cut.
“When you think about all the manufacturing investments that are in these Republican districts, it’s not just the manufacturing jobs that matter,” Stokes continued.
“You start to realize that all those investments in making stuff in America, they want to sell that stuff in America too. And in order to sell that stuff in America, they need the other tax credits for deployment."
In her view, the IRA may turn out to be "a much stickier policy" than many expect.
One additional factor to consider is Trump's approach to international trade, particularly with regard to tariffs. Given the importance of lithium in the production of EV batteries, changes in trade policies involving countries with significant lithium reserves and processing capabilities, such as China, could impact the EV industry.
The proposed tariffs run the risk of provoking retaliatory measures from other countries, including trade barriers. Such a response could escalate into a trade war, with negative consequences for all involved economies.
Sodium-ion batteries, especially if they become commercially viable and cost-effective, could reduce US dependence on China for lithium-ion battery materials and technology.
In April 2024, Osaka Metropolitan University shared research focused on the challenging task of developing a new process for mass producing solid sulfide electrolytes for sodium-ion batteries. This new method has the potential to enable the production of solid-state sodium batteries that could be scaled up for mass production.
Sodium-ion batteries offer other advantages such as improved safety, lower costs due to the abundance of sodium and potentially higher energy density compared to traditional lithium-ion batteries.
Investor takeaway
The cleantech sector is poised for change in 2025, driven by escalating energy demand and the push for sustainability. Advances in nuclear and geothermal energy offer promising solutions, while innovations in battery technology and cooling solutions further support the transition toward a cleaner future.
Overall, the cleantech industry's trajectory depends as much on policy decisions as it does on technological advancements and the global push for sustainability. Industry leaders’ ability to innovate and adapt will be crucial in shaping a cleaner and more energy-efficient future.
Don’t forget to follow us @INN_Technology or real time updates!
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Charbone Hydrogen and Westport Fuel Systems are clients of the Investing News Network. This article is not paid-for content.
EV Market Forecast: Top Trends for EVs in 2025
Electric vehicles (EVs) are an essential part of the transition to a cleaner, greener economy.
EVs are also a key driver of demand for battery metals, such as lithium, cobalt, graphite, nickel and copper. Investors interested in these metals are keeping a close eye on the growth outlook for the global EV market.
So what are the key EV sector trends to follow? Here the Investing News Network (INN) takes a look at what moved the market in 2024, as well as what’s on the horizon for the EV sector in 2025.
How did the EV market perform in 2024?
Global EV sales hit 13.3 million units in the first 10 months of 2024, according to EV market research firm Rho Motion, up 24 percent year-on-year. However, this rise didn't play out equally across the three major regional markets.
China continues to lead global EV sales
Once again China led the way, amassing nearly two-thirds of total global sales during the period.
Purchases of EVs in this region were up 38 percent in the first 10 months of the year to 8.4 million units. That's compared to 9 percent growth in the US and Canada, and a 3 percent decline in Europe.
China’s dominance in the global EV market is beginning to bleed into other markets.
Earlier this year, China’s BYD (OTC Pink:BYDDF,HKEX:1211), the world’s largest EV manufacturer, launched an affordable EV model priced below US$10,000. With North American and European EV manufacturers already struggling to gain market share in their own domestic spheres, these cheaper Chinese EV models pose a significant problem.
In response to this threat, the Biden administration increased tariffs on Chinese EVs to 100 percent in 2024, and disqualified imported EVs from a US$7,500 federal tax credit. The European Union also imposed its own tariffs on Chinese EVs, ranging from 17.4 percent for BYD to 38.1 percent for SAIC Motor Company (SHA:600104).
Global EV sales, 2017 to 2024.
Chart via BloombergNEF, MarkLines and Jato Dynamics.
US EV industry facing challenges
As the top seller of EVs in the US, Tesla’s (NASDAQ:TSLA) performance has an outsized impact on the region’s EV industry. Lagging sales of Tesla models in 2024 have dragged down the overall performance of the North American EV market.
According to data released by the Electric Vehicle Council in early December, the Elon Musk-led company's total sales for 2024 are down by 20.88 percent compared to the previous year.
Another red flag for the US EV industry is Ford’s (NYSE:F) decision in June to suspend the release of new battery electric vehicle (BEV) models — the company said at the time that there wasn't a strong enough business case for such an investment. The news came despite the fact that the auto giant was the second best-selling EV brand in the country in the first half of 2024, before it was overtaken by rival General Motors (NYSE:GM). In November, Ford announced it would pause production of its F-150 Lighting truck for the remainder of the year.
Meanwhile, General Motors has cut its planned 2024 EV production range to 200,000 to 250,000 units, a decrease of 50,000 units. The US auto manufacturer is also delaying the launch of the first Buick EV model.
Despite these challenges, the US EV market landscape has several bright spots.
Third quarter EV sales grew by 11 percent year-on-year, according to Cox Automotive. Even Tesla's sales returned to growth, rising 6.6 percent, while General Motors posted a 60 percent sales gain for the same period.
“The growth is being fueled in part by incentives and discounts; but as more affordable EVs enter the market and infrastructure improves, we can expect even greater adoption in the coming years,” said Stephanie Valdez Streaty, director of industry insights at Cox Automotive.
European EV market sluggish
The European market also struggled in 2024, especially in Germany, the largest producer of EVs in this region. The German government cut subsidies for EVs at the end of 2023, which has disincentivized buyers in 2024.
The German EV industry is the second largest in the world after China. A significant drop in demand in Germany has understandably had a dramatic impact on European EV production.
In October, Volkswagen (OTC Pink:VLKAF,FWB:VOW), the region’s largest automaker, announced its intention to close three German plants to cut costs as it tries to stave off competition from cheaper Chinese EVs.
Battery car registrations declined after incentives were removed last year.
Chart via Bloomberg and the European Automobile Manufacturers' Association.
Europe’s auto makers are facing growing challenges ahead of the approaching 2035 ban on the production of any new internal combustion engine vehicles. New EV registrations fell in the second half of the year, including in France and Italy, while the UK has seen some positive gains, as per Bloomberg.
What's slowing down EV demand?
One of the biggest challenges currently facing the EV industry is the problem of appealing to mainstream consumers, many of whom are dealing with high interest rates amid a cost-of-living crisis.
Depending on the geographic location and the vehicle type, BEVs are 10 percent to 75 percent more expensive than conventional internal combustion engine vehicles. This is making for less-than-appealing pitches on the sales floor.
Throw in the higher cost for tires, one-off repairs and the possibility of having to replace an exorbitantly priced battery, and it becomes clear why the hesitancy is palpable. Range anxiety, especially in colder climates, long charging times and a lack of reliable charging infrastructure are also significant barriers to EV adoption. But nothing trumps cost.
PwC recently polled over 17,000 consumers across 27 countries, and found that even in places like the Netherlands, which has advanced charging infrastructure, high costs are still deterring would-be buyers from going electric.
Overall, PwC found that 75 percent of respondents in Europe, the Middle East and Africa cited the cost of EV ownership as the biggest factor swaying their decision to purchase. On top of that, one-third of EV owners surveyed said they would consider going back to gas-powered vehicles to avoid high maintenance costs and limited range.
Subsidies and tax breaks have helped to ease the price burden, but pullbacks on these rebates have hit the market hard in some European countries where high interest rates and costs continue to put EV purchases out of reach.
Another factor stunting sales in the European Union, reported Euronews, has been higher tariffs imposed on low-cost Chinese EVs to limit their ability to displace domestic automakers from the market.
Despite the slowdown in adoption, 2024 is still expected to be another record year for the global EV industry.
That was the main takeaway from a presentation at the BloombergNEF Summit in November. Aleksandra O’Donovan, the research organization’s head of EVs, said the firm is forecasting that EV sales worldwide will reach 16.7 million units in 2024, up from 13.9 million the previous year, representing 20 percent of total global vehicle sales this year.
Hybrid EVs gaining market share
One of 2024's important EV market trends that is likely to carry on into 2025 is the popularity of hybrid models over wholly electric vehicles. This trend is very much in line with the affordability and range anxiety factors influencing sales.
To meet customers where they are at right now, auto makers are switching gears to bring more hybrid models to market, including plug-in hybrid electric vehicles (PHEVs).
“Companies are turning to hybrid models to appeal to a more practical and frugal shopper, as wealthy early EV adopters who fueled years of growth have recently fled the market,” notes Business Insider.
In this environment, hybrid-focused auto makers such as Toyota (NYSE:TM,TSE:7203) and Ford are expected to outperform. General Motors is also planning to launch more hybrid EV models in 2027.
Even in China, the world’s top EV market, plug-in hybrids are driving a large part of EV sales growth. BloombergNEF states that while BEV sales in China were up 18 percent in the first 10 months of the year, plug-in sales were up 37 percent.
Mexico emerging as an EV production hub
Outside of China, the US and Europe, EV sales are growing in emerging markets.
JD Power’s Autovista Group reported that in 2024, “Volumes grew by more than 100% in markets including Australia, Thailand, Brazil, Turkey, Malaysia, and Mexico in 2023 and more than 50% in India and Japan”.
Mexico, for example, is on its way to becoming a major EV production hub.
“We're already seeing EV production take off in Mexico over the past 12 to 18 months,” said Rho Motion research analyst George Whitcomb during a Benchmark-hosted webinar that INN attended in late November.
The growth in Mexico’s EV industry can be attributed to a number of factors, explained Whitcomb.
Those include its established transport production chains, geographic location, strong position in the traditional global auto industry and trade agreements. “But from an EV standpoint in particular, the US Inflation Reduction Act (IRA) has been central to stimulating EV production in Mexico,” he added.
What’s the EV market outlook for 2025?
EV Volumes is forecasting that the total EV share of light-vehicle sales worldwide will reach 22.6 percent in 2025. Further out, the firm sees the market share for EVs surging to 44.6 percent in 2030 and 69.5 percent in 2035.
Looking at the broader market (which includes buses, vans and heavy trucks), tech research firm Gartner predicts that by the end of 2025, 85 million EVs will be on the road, a year-on-year increase of 33 percent.
China to continue dominating the EV market
“The growth in 2025 will be driven primarily by higher EV sales in China (58%) and Europe (24%), which together are projected to represent 82% of total EVs in use worldwide,” states Jonathan Davenport, senior director analyst at Gartner.
In 2025, the firm estimates that 49 million EVs will be on Chinese roadways, compared to 20.6 million in Europe and 10.4 million in North America.
Gartner sees China continuing its domination of the global EV landscape for at least another decade. For its part, EV Volumes expects BEVs to “gain ground in the BEV-PHEV mix from 2025 onwards” in China as the government offers further financial supports to motivate consumers.
Europe’s EV market will cool before heating back up
Europe’s light-vehicle EV market will see a growth rate of 22.8 percent in 2025, according to EV Volumes, followed by a further 20.1 percent increase in 2026 and a 21.1 percent rise in 2027.
By 2030, the firm sees EVs accounting for 61 percent of the overall light-vehicle market in the region.
Government subsidies will continue to be a key factor shaping Europe’s EV industry for 2025, says Rho Motion. For example, the agency notes that France is set to follow Germany’s lead and make a 50 percent cut to its EV subsidies for 2025 as the government works to address fiscal challenges. Spain is also considering reducing subsidies.
However, Forbes reported that professional services firm Accenture has called the slower growth in Europe’s EV market “a temporary blip” as a recent consumer survey shows that “every other consumer in Europe plans to buy an EV in the next 10 years and every fifth consumer in the next 5 years.”
US EV market in the Trump era
EVs are projected to hit 13.5 percent market share for overall US light-vehicle sales in 2025, as per EV Volumes, up from an estimated 10.3 percent in 2024. That figure is expected to rise to 39.7 percent by 2030 and 71.8 percent in 2035.
Within the EV market itself, BEVs are still dominating over hybrid models and are expected to account for 82.4 percent of total US EV sales for 2025, up from 78.6 percent in 2024.
The IRA, brought forward by the Biden administration in mid-2022, introduced significant tax credits for EV buyers, helping to take the edge off the cost burden of buying into the clean technology. While the IRA is slated to run through 2032, there are concerns that President-elect Donald Trump may reverse those benefits once he takes office in 2025.
“The US market remains buoyant in part thanks to IRA funding for consumers switching to electric which may be at risk with the start of the Trump presidency,” said Rho Motion Data Manager Charles Lester.
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Copper Cables: Powering the Renewable Energy Revolution
As the global shift towards renewable energy accelerates, savvy investors are turning their attention to a critical yet often overlooked component of clean energy infrastructure: copper cables. These essential conductors are experiencing a surge in demand, driven by the rapid expansion of wind farms, solar installations and other renewable energy projects worldwide.
The renewable energy sector is experiencing unprecedented growth, with global capacity additions reaching new heights. In 2023, renewable energy capacity surged by approximately 50 percent, adding nearly 510 gigawatts (GW) to the global energy mix. This remarkable expansion has brought the total renewable capacity to an all-time high of 3,870 GW, accounting for 86 percent of all new power capacity added worldwide.
Copper cables are at the heart of this green energy revolution, playing a fundamental role in the construction and operation of renewable energy infrastructure, from sprawling wind farms to vast solar installations.
Essential role of copper cables in renewable energy
Copper cables are the lifeblood of renewable energy systems, facilitating the efficient transmission and distribution of electricity from the point of generation to end users. Their superior conductivity and durability make them ideal for handling the high currents generated by wind turbines and solar panels.
In wind farms, copper cables connect individual turbines to substations and then to the main power grid. For solar installations, they link photovoltaic panels and inverters, ensuring that the DC power generated is efficiently converted and transmitted as AC power. The reliability of copper cables is crucial in maintaining the integrity of these complex energy systems, minimising power losses and enhancing overall efficiency.
Market dynamics: A surge in demand
The global market for wires and cable is on an upward trajectory, driven largely by the renewable energy boom.
Projections indicate the market value is set to grow from US$202 billion in 2023 to US$350 billion by 2032, representing a compound annual growth rate of 6.28 percent.
This growth is intrinsically linked to the expansion of renewable energy projects worldwide. As of 2024, renewable energy applications are expected to account for about 8 percent of the entire wire and cable demand, a figure that is likely to increase as more countries pivot towards sustainable energy sources.
Industry leaders adapting to market shifts
Major suppliers in the cable industry are strategically positioning themselves to capitalise on the renewable energy sector's growth. These companies are shifting their focus from traditional sectors like automotive and telecoms to prioritise the burgeoning renewable energy market.
A prime example of a company leveraging this market shift is Energy Technologies (ASX:EGY), an Australian firm specialising in the manufacture and distribution of copper-insulated cables through its subsidiary, Bambach Wires and Cables. Founded in 1936, Energy Technologies has established itself as a reliable player in the industry, with over 90 percent of its materials sourced locally.
Energy Technologies has formed strategic partnerships to broaden its offerings in the renewable energy sector. Its collaboration with Gantner Instruments focuses on providing low-voltage cables and control solutions for photovoltaic systems. Meanwhile, a partnership with the Tratos Group has enabled the company to offer medium- and high-voltage cable solutions for both offshore and onshore wind turbines.
The company's growth strategy aligns closely with the projected expansion of the renewable energy market in Australia, which is expected to reach AU$6 billion annually by 2034. Energy Technologies is adopting a dual approach to sales, focusing on higher-margin cable products at its Rosedale facility while sourcing lower-margin cables globally to optimise cash flow and meet increasing market demand.
Investment opportunities in copper cable market
The growing demand for copper cables in the renewable energy sector presents attractive opportunities for investors. As countries worldwide accelerate their transition to clean energy, companies specialising in the production and distribution of high-quality copper cables are likely to see sustained growth.
Investors should consider the following factors when evaluating opportunities in this sector:
- Market growth projections and government policies supporting renewable energy adoption
- Technological advancements in cable manufacturing and renewable energy systems
- Company-specific strategies for addressing the unique needs of the renewable energy sector
- Potential risks such as fluctuations in copper prices and geopolitical factors affecting supply chains
Investor takeaway
As the renewable energy sector continues its rapid expansion, the demand for copper cables is set to grow in tandem. These essential components play a crucial role in the efficient transmission and distribution of clean energy, making them a cornerstone of the global transition to sustainable power sources.
For investors, the copper cable market represents a compelling opportunity to participate in the renewable energy revolution. By carefully evaluating market trends, technological developments and company-specific strategies, investors can position themselves to benefit from the ongoing growth in this critical sector.
This INNSpired article is sponsored by Energy Technologies (ASX:EGY). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by Energy Technologiesin order to help investors learn more about the company. Energy Technologies is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.
This INNSpired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Energy Technologies and seek advice from a qualified investment advisor.
Powering Progress: The Lucrative World of Cable Wire Investments
In the intricate web of modern infrastructure, cable wires serve as the nervous system, transmitting power and data across vast networks. These unassuming components play a pivotal role in sustaining our technologically driven world, making them a cornerstone of industrial progress and a compelling focus for astute investors.
Cable wires are omnipresent, threading through the fabric of various sectors from telecommunications to energy distribution. Their significance lies not just in their functionality but in their capacity to evolve with technological advancements. As industries push towards greater efficiency and sustainability, the demand for high-quality, durable cable solutions continues to surge.
The longevity and reliability of cable systems are paramount in industrial applications. With the increasing focus on sustainable infrastructure, cables that offer extended lifespans and minimal environmental impact are becoming increasingly valuable. This shift towards sustainability is not just an ethical choice but a strategic one, aligning with global initiatives and potentially offering long-term cost benefits.
Diverse applications
To appreciate the tremendous investment opportunity in the cable industry, one should understand the role cable plays in enabling and facilitating the functions of a vast number of industries. They include:
- Telecommunications: Fibre optic cables form the backbone of global communication networks, enabling high-speed internet and data transmission.
- Energy: Power cables are essential for electricity distribution, from power plants to end users, including the burgeoning renewable energy sector.
- Automotive: With the rise of electric vehicles, specialised cables for power distribution and charging infrastructure are in high demand.
- Construction: Building automation and smart home technologies rely heavily on advanced wiring solutions.
- Industrial Automation: Cables play a crucial role in connecting sensors, controllers and actuators in smart factories.
The ongoing digital transformation across these industries ensures a sustained demand for cable wires, making them a foundational component of technological progress.
Market dynamics and growth projections
The global cable and wire market has demonstrated robust growth, with its value surpassing US$208 billion in 2023. Industry analysts project a compound annual growth rate of approximately 9.1 percent from 2024 to 2032, indicating significant expansion opportunities for investors.
Several trends are driving this growth:
- Renewable energy expansion: The shift towards clean energy sources necessitates specialised cables for solar and wind power installations.
- Smart grid implementation: Advanced power distribution systems require sophisticated cable networks for efficient energy management.
- 5G network rollout: The deployment of 5G infrastructure is creating substantial demand for high-performance communication cables.
- Electric vehicle adoption: The automotive industry's electrification is spurring demand for charging infrastructure and in-vehicle wiring systems.
These trends not only contribute to market growth but also highlight the strategic importance of cable wires in shaping future technologies and infrastructure.
Key players in cable manufacturing
The cable manufacturing industry is characterised by a mix of established global players and innovative newcomers. Major companies like Prysmian (BIT:PRY), Nexans (EPA:NEX) and Southwire Company dominate the market, leveraging their extensive research and development capabilities to stay ahead of technological curves.
One company worth noting is Energy Technologies (ASX:EGY), an Australian firm that has made strategic moves in the cable manufacturing space. Through its subsidiary, Bambach Wires and Cables, Energy Technologies produces a range of specialised cables for industries such as mining, rail, defense and marine.
Energy Technologies' investment in Bambach exemplifies a shrewd approach to market expansion. By focusing on niche, high-performance cable products, the company has positioned itself to capitalise on specific industry demands. This strategy allows Energy Technologies to compete effectively against larger players by offering tailored solutions for specialised applications.
Global partnerships: A key to market penetration
Energy Technologies' approach to global partnerships serves as a model for effective market penetration in the cable manufacturing industry. By forging alliances with international firms, the company gains access to new technologies, markets and distribution channels.
Energy Technologies’ alliance with Gantner Instruments, a full-service photovoltaic monitoring and control supplier for utility-scale photovoltaic power plants, provides a platform for Energy Technologies to supply the renewable energy sector with certified, specialised low-voltage cables, connectors, weather stations and DC combiner boxes.
This collaborative strategy is particularly crucial as the industry adapts to emerging trends such as renewable energy integration and smart grid technologies. Partnerships enable companies to pool resources, share risks and accelerate innovation, critical factors in an industry where technological advancement can quickly shift market dynamics.
Investment case for cable manufacturing
For investors, the cable wire industry presents a compelling opportunity for several reasons:
- Essential infrastructure: Cables are fundamental to modern infrastructure, ensuring consistent demand across economic cycles.
- Technological advancement: Ongoing innovation in cable design and materials offers potential for high-margin, specialised products.
- Global market reach: The universal need for cable solutions provides opportunities for international expansion and diversification.
- Sustainability focus: The industry's alignment with green energy initiatives positions it favorably in the context of global sustainability goals.
Energy Technologies serves as an illustrative case study for successful investment in this sector. By focusing on high-value, specialised products and leveraging strategic partnerships, the company has carved out a competitive position in a market dominated by larger players.
Investor takeaway
From powering renewable energy grids to enabling high-speed data transmission, cables are the unsung heroes of our technological age. For investors, this industry offers a unique blend of stability and growth potential, underpinned by ongoing technological advancements and infrastructure development.
Companies like Energy Technologies, with their focused approach and adaptability, exemplify the kind of strategic thinking that can yield significant returns in this dynamic market.
This INNSpired article is sponsored by Energy Technologies (ASX:EGY). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by Energy Technologiesin order to help investors learn more about the company. Energy Technologies is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.
This INNSpired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Energy Technologies and seek advice from a qualified investment advisor.
COLDry Fertiliser JV Seed Funding & Working Capital Secured
Environmental Clean Technologies Limited (ASX: ECT) ("ECT" or "the Company") is pleased to provide the following update on its joint venture project with ESG Agriculture Pty Ltd (“ESG”).
Highlights:
- “Zero Quest” Joint Venture:
- Joint venture established to develop sustainable soil health solutions including the commercialisation of ECT’s net-zero COLDry fertiliser product
- JV company established: Zero Quest Pty Ltd (www.zero-quest.com.au)
- ESG and ECT to contribute seed funding of $150,000 each
- Field trials to commence immediately
- Funding Milestones:
- ECT secured $482,488R&D Loan, including contribution for JV seed funding
- ECT secured, subject to shareholder approval, $647,512in further funding
- Project Advancements: COLDry Fertiliser process design completed and tested; field trials to follow
- Project Finance Progress: Targeting completion in Q1 CY25
- Leadership Transition: Sam Rizzo transitions to Non-Executive Director role for ECT and Zero Quest
ECT and ESG have launched Zero Quest Pty Ltd, a joint venture with offices in Melbourne and Adelaide, Australia, focused on delivering innovative, zero-emission solutions for sustainable agriculture. As announced on 4 April and 15 July 2024 ESG is a solution provider of soil health products and advisory services, supporting growers on their practice change journey towards reducing their carbon footprint. ESG brings to the JV leading agricultural executives with proven results in engaging with growers and developing agricultural solutions. The collaboration with ESG spearheads the COLDry Fertiliser Project, a transformative initiative to reduce emissions and boost agricultural efficiency.
Key milestones:
- Incorporation of Zero Quest Pty Ltd
- Seed Funding: The partners have contributed $300,000
- Field Trials Launch: Trials to begin immediately for the COLDry Fertiliser Project.
Zero Quest will be managed jointly by ECT and ESG, with Sam Rizzo (ECT) and Mark Scanlon (ESG) serving as foundation directors. Martin Hill, ECT’s CFO, will act as Company Secretary.
Field Trials and Strategic Goals
Zero Quest is set to conduct field trials with large-scale farmers across South Australia, Victoria, New South Wales, and the Philippines, evaluating diverse crop and soil types. The trials will be funded by the initial
$300,000 contributed by the JV partners and a further $100,000 that each of the JV partners are obliged to contribute in early 2025. Any additional capital raising (whether equity or debt) is to be contributed equally by the JV partners, unless otherwise mutually agreed. Running for up to six months, the trials will engage farmers under Memorandums of Understanding (MOUs), which are expected to transition into binding off- take agreements upon achieving the following objectives.
Field Trial Objectives:
1. Validate the fertiliser’s performance under real-world agricultural conditions, focusing on crop yield and soil health.
2. Environmental Impact Assessment: Measure reductions in carbon intensity and overall environmental footprint compared to conventional fertilisers.
3. Off-Take Agreements: Secure binding agreements with agricultural stakeholders based on trial success, paving the way for commercial production.
The Value of COLDry Fertiliser
The product, ‘COLDry Fertiliser’, is a blended fertiliser designed to match or surpass the performance of traditional chemical urea fertilisers, offering farmers a competitive and sustainable alternative.
The commercial proposition of COLDry Fertiliser to farmers is:
- Lower cost
- Same or better performance
- Compatibility with existing spreading equipment
- Lower emissions
- Improved soil health benefits
Sam Rizzo, Director of ECT and Zero Quest, commented:
“The establishment and funding of Zero Quest, along with the launch of field trails, mark the culmination of many months of work across the various stages of the Joint Venture between ECT and ESG. This milestone is a strong indicator of progress under our ‘race to revenue model’ and now allows us to channel our focus towards delivering the COLDry Fertiliser Project.”
Mark Scanlon, Director of ESG and Zero Quest, commented:
“The launch of field trials is a significant milestone, showcasing the real-world benefits of our innovative fertiliser. Partnering with ECT underscores our commitment to sustainable practices, and we are confident these trials will demonstrate the transformative potential of this product for both farmers and the environment.”
Click here for the full ASX Release
This article includes content from Environmental Clean Technologies Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Hazer Group Receives AU$6.2 Million Government Grant for Commercial Reactor Program
The Western Australian government has awarded Hazer Group (ASX:HZR) AU$6.2 million in conditional grant funding under its Lower Carbon Grants Program — Gorgon Fund.
Hazer said the grant is non-refundable and was approved via the execution of a financial assistance agreement and project plan. It will use the funds to advance its commercial reactor scale-up program.
The first iteration of Hazer's reactor technology was installed in its commercial demonstration plant (CDP) in 2023, and the company completed a test program ahead of schedule in November.
The CDP reactor is capable of large-scale application of single train capacity of up to 40,000 tonnes per year.
“We gratefully acknowledge the support of the Western Australian Government and the Gorgon Joint Venture for providing the funding to progress the important next phase of technology scale-up to commercialise Hazer's novel Western Australian technology,” Hazer CEO and Managing Director Glenn Corrie said on Tuesday (December 3).
He added that the funding will substantially support the company’s 2025/2026 work program, which is centred on advancing Hazer's commercialisation strategy for use in Australia and around the world.
Subject to Hazer’s achievement of key milestones related to its commercial reactor scale-up program at the CDP, the company will be eligible to draw down the government funding via multiple tranches.
The Lower Carbon Grants Program — Gorgon Fund is a new initiative that was established in 2024 to provide funding for local innovations and projects that support decarbonisation.
It is administered by the Western Australian government and funded by the Gorgon joint venture, which is operated by Chevron Australia and includes Australian subsidiaries of Chevron (NYSE:CVX), ExxonMobil (NYSE:XOM), Shell (NYSE:SHEL,LSE:SHEL), Osaka Gas (TSE:9532), MidOcean Energy and JERA.
“The Western Australian Government is committed to diversifying and decarbonizing the state’s economy, with a target of net zero carbon emissions by 2050," said Minister Stephen Dawson.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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