Asian billionaires are investing in renewable energy and you know what that means?
Increase in silver demand.
Indian tycoon Mukesh Ambani unveiled an ambitious push into clean energy. He put more than $10.1 billion of his money into a 3-year project to push for renewable energy.
One of his companies, Reliance Industries Ltd., gets 60% of its revenue from oil refining and petrochemicals.
He wants to slowly convert his business to more eco-friendly business models. He is starting with four “Giga factories” to make solar modules, hydrogen, fuel cells and to build a battery grid to store electricity.
One of Reliance’s “Giga factories” will manufacture solar modules, enabling 100 gigawatts of solar energy by 2030, including on rooftop installations in villages across the country. The second involves large-scale grid batteries to store electricity.
The next phase is investing in the value chain and other partnerships.
Just note that this $10 billion investment is but a fraction of his annual revenue of $63 billion.
Global giants such as Exxon Mobil Corp. and TotalEnergies SE have been under pressure to pare their carbon footprint, as governments, investors, and consumers join to fight climate change and global warming.
Interestingly enough, it is Asian companies and Asian billionaires that are leading the charge.
Horace Chan, an energy analyst at Bloomberg Intelligence, said that Reliance is branching out into completely new businesses. However, there are concerns about whether the investments could generate an acceptable return and payback period, given the time to acquire technology know-how and seek strategic partners.
This brings a very important point.
There is constant doubt on the profitability of renewable energy highlighted by the media.
But it is not stopping billionaires and investors from betting on renewable energy.
Why? Because there is a huge demand for renewable energy from the market. In fact, even commodities are expected to be produced using renewable energy.
Ambani said the world is entering a new energy era, which is going to be highly disruptive. He doesn’t believe that fossil fuels, which have powered economic growth globally for nearly three centuries, cannot continue much longer.
He, along with many other investors and businessmen, is moving towards renewable energy.
Silver is going to be central in this move.
Silver is highly undervalued now but with all these moves, all these new investments, and companies moving towards renewable energy, silver will rise.
Don’t wait until it is too late.
