BiQ Journal: Catching the Wind. How This Green Energy Pioneer is Leveraging a Small Molecule to Solve a Gigawatt-Sized Problem.
Green energy companies have struggled in the US due to a combination of challenging economics, technological gaps, inconsistent government policy, and, more recently, what appears to be overt antipathy from the current Administration. It also doesn't help that the U.S. sits atop one of the world's largest hydrocarbon reserves, with a deeply entrenched government-industrial complex that often benefits from maintaining the status quo.
The picture is very different in Europe and the UK. Compared with regions such as Russia, Venezuela, the Middle East, and North America, Europe and the UK have very limited hydrocarbon reserves. Europe and the UK, combined, have less than 3% of Venezuela's reserves and less than 12% of the U.S.'s reserves, most of which are in irreversible, structural long-term decline. For example, about 93% of the UK's total historical resources have already been extracted, and Norway is investing ever-increasing amounts of capital to extract offshore oil and gas while contending with the law of diminishing returns.
While Biotech and Medtech remain the core focus at BiQ, current massive industrial investment cycles, driven by major technological advances and innovation, are creating highly attractive investment opportunities across many different sectors. Based on strong member interest, I have begun sharing some of my non-biotech investment ideas with members across sectors such as Energy & Infrastructure, Strategic Industrials, Semiconductors, Precious Metals, Aerospace and Defense, and several others. In this article, I will explore a new investment opportunity I have been researching in the Green Energy sector, or more broadly, my Energy Infrastructure & Services group, as I choose to define it.
Here's a quick look at the performance of current ideas I have shared with BiQ members in this sector of my portfolio. All of these ideas were shared within the past year, and some within only the past few weeks:
While "green energy" is often dismissed as a rallying cry for environmental groups, which in some ways has hurt its prospects here in the U.S., I find it's most useful to put political inclinations aside when trying to develop a defensible investment thesis, which is the intent of this article.
Today, I'd like to introduce BiQ members to a new European industrial pioneer that I feel offers a very attractive investment opportunity. This company meets most of my most important investment criteria for investing in this sector:
- Strong market need
- Technological leadership
- Experienced management
- Growing revenue momentum
- Strong balance sheet
- Massive TAM
- Backed by one of the world's largest industrial giants
- Meaningful government support
- Public policy tailwinds
Europe, including the UK for the purposes of this article, currently generates about 950-1,000 TWh of solar and wind power annually. By 2030, this number is projected to increase to around 2,400 TWh. However, even at current 2026 production levels, around 72 TWh of renewable electricity is discarded annually due to insufficient grid capacity and other bottlenecks. This costs European taxpayers over €7.2 billion annually in curtailment charges, lost value, and idle capacity. Germany, alone, wastes approximately 9.6 TWh of electricity annually due to these bottlenecks.
Renewable power generation has made tremendous advances over the past decade, and Europe has expanded its electricity generation capacity from renewable sources much faster than its grid and storage capacity, resulting in significant inefficiencies. Governments across Europe are now taking concrete steps to resolve these bottlenecks, which open up potentially lucrative investment opportunities for savvy investors.