Green Infrastructure: Green Fuel
February 28, 2023
Read Time 3 MIN
Green infrastructure is the range of systems and technologies that enable and provide for a more sustainable way of living. In this blog series, we will outline seven specific areas: green transportation, green energy, green fuel, waste management, green infrastructure & equipment, pollution control, and green constructions. We will define these themes, how they contribute to green infrastructure and how they are instrumental to the space as a whole moving forward.
Green Fuel
Green fuel is an alternative energy source that is considered environmentally friendly and sustainable. Unlike traditional fossil fuels, such as coal, oil, and natural gas, green fuels are made from renewable resources, which means they are replenished naturally and will not run out over time. Some common examples of green fuels include biodiesel, ethanol, and hydrogen.
The adoption of green fuels has been increasing in recent years due to growing concerns over the environmental impact of traditional fossil fuels. According to a recent IEA report from 2021, the global green fuels market is expected to grow at a compound annual growth rate (CAGR) of over 9% between 2021 and 2026, driven by rising demand for clean energy and supportive government policies.
Supply of Biofuels Worldwide in 2021 with a Forecast from 2025 to 2045
Source: OPEC, as of 2023. Not intended as a forecast or prediction of future results.
* Forecast data from 2025 onwards.
One of the companies at the forefront of the green fuel industry is Bloom Energy. Founded in 2001, Bloom Energy is a provider of innovative energy solutions that harness the power of clean, sustainable energy sources. The company’s signature product is the Bloom Energy Server, a fuel cell that generates electricity through a clean and efficient process. Unlike traditional power sources that rely on combustion, the Bloom Energy Server uses an electrochemical process that produces electricity directly from a fuel source, such as natural gas or biogas.
One of the key advantages of the Bloom Energy Server is its high efficiency. According to the company, the Bloom Energy Server can deliver up to 50% more energy than traditional power sources while emitting significantly less carbon dioxide and other harmful pollutants. Additionally, the Bloom Energy Server is highly scalable and can be customized to meet the specific energy needs of a particular client.
Furthermore, the Bloom Energy Server is extremely reliable. Unlike other alternative energy sources, such as solar and wind, the Bloom Energy Server can generate power 24/7, even with little to no sunshine or wind. This makes it an ideal solution for critical infrastructure and applications that require a reliable source of power.
Green fuels are a critical component of the transition to a more sustainable and environmentally friendly energy future. Companies like Bloom Energy are driving the adoption of these fuels by providing innovative solutions that harness the power of clean energy sources. As demand for green fuels continues to grow, we will likely see further innovation and progress in this exciting and rapidly evolving industry.
Investors can access key green infrastructure companies with the VanEck Green Infrastructure ETF (RNEW). The ETF provides diversified exposure to companies across the seven green infrastructure sub-themes.
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Disclosures
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities/financial instruments mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, or tax advice. Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results, are valid as of the date of this communication and subject to change without notice. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its employees.
Sustainable investing strategies aim to consider and in some instances integrate the analysis of environmental, social and governance (ESG) factors into the investment process and portfolio. Strategies across geographies and styles approach ESG analysis and incorporate the findings in a variety of ways. Incorporating ESG factors or Sustainable Investing considerations may inhibit the portfolio manager’s ability to participate in certain investment opportunities that otherwise would be consistent with its investment objective and other principal investment strategies.
ESG investing is qualitative and subjective by nature, and there is no guarantee that the factors utilized by VanEck or any judgment exercised by VanEck will reflect the opinions of any particular investor. Information regarding responsible practices is obtained through voluntary or third-party reporting, which may not be accurate or complete, and VanEck is dependent on such information to evaluate a company’s commitment to, or implementation of, responsible practices. Socially responsible norms differ by region. There is no assurance that the socially responsible investing strategy and techniques employed will be successful. An investment strategy may hold securities of issuers that are not aligned with ESG principles.
An investment in the VanEck Green Infrastructure ETF (RNEW) may be subject to risks which include, among others, green infrastructure companies, green energy companies, environmental services industry, green investing strategy, industrials sector, energy sector, consumer discretionary sector, utilities sector, information technology sector, equity securities, micro-capitalization securities, small- and medium-capitalization companies, market, operational, index tracking, authorized participant concentration, new fund, absence of prior active market, trading issues, passive management, fund shares trading, premium/discount and liquidity of fund shares, non-diversified and concentration risks, all of which may adversely affect the Fund. Micro-, small- and medium-capitalization companies may be subject to elevated risks.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider a Fund's investment objective, risks, charges and expenses carefully before investing. To obtain a prospectus and summary prospectus for VanEck Funds and VanEck ETFs, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus for VanEck Funds and VanEck ETFs carefully before investing.
© 2023 Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation.
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Disclosures
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities/financial instruments mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, or tax advice. Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results, are valid as of the date of this communication and subject to change without notice. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its employees.
Sustainable investing strategies aim to consider and in some instances integrate the analysis of environmental, social and governance (ESG) factors into the investment process and portfolio. Strategies across geographies and styles approach ESG analysis and incorporate the findings in a variety of ways. Incorporating ESG factors or Sustainable Investing considerations may inhibit the portfolio manager’s ability to participate in certain investment opportunities that otherwise would be consistent with its investment objective and other principal investment strategies.
ESG investing is qualitative and subjective by nature, and there is no guarantee that the factors utilized by VanEck or any judgment exercised by VanEck will reflect the opinions of any particular investor. Information regarding responsible practices is obtained through voluntary or third-party reporting, which may not be accurate or complete, and VanEck is dependent on such information to evaluate a company’s commitment to, or implementation of, responsible practices. Socially responsible norms differ by region. There is no assurance that the socially responsible investing strategy and techniques employed will be successful. An investment strategy may hold securities of issuers that are not aligned with ESG principles.
An investment in the VanEck Green Infrastructure ETF (RNEW) may be subject to risks which include, among others, green infrastructure companies, green energy companies, environmental services industry, green investing strategy, industrials sector, energy sector, consumer discretionary sector, utilities sector, information technology sector, equity securities, micro-capitalization securities, small- and medium-capitalization companies, market, operational, index tracking, authorized participant concentration, new fund, absence of prior active market, trading issues, passive management, fund shares trading, premium/discount and liquidity of fund shares, non-diversified and concentration risks, all of which may adversely affect the Fund. Micro-, small- and medium-capitalization companies may be subject to elevated risks.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider a Fund's investment objective, risks, charges and expenses carefully before investing. To obtain a prospectus and summary prospectus for VanEck Funds and VanEck ETFs, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus for VanEck Funds and VanEck ETFs carefully before investing.
© 2023 Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation.
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