Reducing our reliance on fossil fuels, the primary contributors to greenhouse gas emissions, is key to addressing climate change. By shifting from traditional energy production to cleaner energy sources, including solar and wind power, as alternatives to coal and oil, we can significantly mitigate our environmental impact.
The renewable energy transition not only addresses the immediate effects of climate change but ensures long-term environmental sustainability by laying the foundation for healthier ecosystems and improved quality of life for future generations.
While solar and wind power play significant roles in the energy transition, they are not the only clean energy investments for investors to consider.
Helium
Helium’s role in driving green technology innovation may not be immediately recognised but the use of the noble gas is crucial in various green energy technologies.
Thanks to its unique properties and applications, helium plays a crucial role in wind turbine and solar panel production. Helium is used in the production process to enhance the efficiency of wind turbines by reducing friction and heat, leading to increased energy output.
Helium also contributes to the sustainability of solar panels by creating a controlled atmosphere during manufacturing, ensuring high-quality and durable panels for renewable energy systems.
Hydrogen
Like helium, hydrogen is another gas critical to the global clean energy transition.
The Albanese Government is promising billions of dollars to turn Australia into a leading supplier of green hydrogen.
The government’s 2024 National Hydrogen Strategy focuses on accelerating clean hydrogen industry growth. This will be achieved through increasing global cost competitiveness by supporting industry development at scale.
D3 Energy
D3 Energy Ltd (ASX:D3E, OTCQB:DNRGF), has confirmed significant helium and gas potential in South Africa as demand for the commodities outstrips supply.
The helium and natural gas company is determined to unlock the resource potential of its flagship ER315 asset in South Africa’s Free State Province. D3E was granted its 100%-owned flagship methane and helium exploration asset in August, not long after the company’s IPO in May.
With world-class helium concentrations ranging between 5-9% and significant discovered natural gas resources, D3 Energy is positioned to address growing global helium demand while securing South Africa’s energy security and supporting energy transition efforts.
As a critical resource that plays a vital role in various high-tech industries and cutting-edge applications, the price of helium is set to soar in coming years with a supply shortage looming.
Helium prices are already at record high levels, having gained 18% per annum over the past five years — a trend that is predicted to continue to increase.
Looking ahead, demand is predicted to remain high and to continue to grow. A finite resource, helium underpins diverse industries due to its unique thermal conductivity, inertness, and cryogenic properties.
“We believe our asset is becoming a globally significant helium project at a time where supply is struggling and will struggle to meet both current and predicted demand,” D3E chair Greg Columbus (WA:CLC) said.
He added that the company is also, “developing into an important provider of natural gas in South Africa, helping address energy deliverability challenges and supporting the country’s sustainable energy transition, and importantly, deliver value to shareholders.”
Provaris Energy
Provaris Energy Ltd (ASX:PV1, OTC:GBBLF) seeks to be an early mover in developing integrated green hydrogen projects
The company is developing a portfolio of integrated green hydrogen projects for the regional trade of Asia and Europe, leveraging its innovative compressed hydrogen bulk storage and carrier.
The company is focused on its business model of simple and efficient hydrogen production and transport to establish an early-mover advantage for the regional maritime trade of hydrogen.
Provaris is making rapid progress in its hydrogen supply chain initiatives.
The company recently executed a conditional term sheet with Uniper and Norwegian Hydrogen for the supply, transport and offtake of renewable green hydrogen for a minimum of 10 years — a precursor to a binding hydrogen sale and purchase agreement.
Under the term sheet, 42,500 tonnes per year of RFNBO-certified hydrogen is to be delivered to Europe from sites in Norway and other Nordic regions as gaseous compressed hydrogen using Provaris' H2Neo carriers.
Constellation Resources
Constellation Resources Ltd (ASX:CR1) has a diverse portfolio of high-potential resource projects spread across Western Australia. These projects span natural hydrogen and helium, as well as copper, gold and nickel, and each offer significant opportunities.
Late last year, the company signed a research agreement with the CSIRO to jointly advance prospectivity studies for natural hydrogen and helium at CR1’s Edmund Collier and Yerrida projects in Western Australia.
Constellation is positioned as a first mover in natural hydrogen exploration in WA and has been named the preferred applicant for six Special Prospecting Authorities with Acreage Option (SPA-AO) applications covering 56,192 square kilometres in the state.
These first-mover applications target two basin-scale opportunities – the Edmund-Collier and Yerrida basins – considered highly prospective for natural hydrogen and helium.
The move comes as Western Australia positions itself as a leader in natural hydrogen development, following the passage of the Petroleum Legislation Amendment Bill 2023, which establishes a framework for exploring and incorporating natural hydrogen into existing gas pipelines.
The global demand for hydrogen is projected to increase fivefold by 2050, with growing interest in natural hydrogen as a zero-carbon energy source.
Natural hydrogen, sourced underground, offers a cost-effective alternative to grey hydrogen produced from natural gas, with the additional advantage of lower carbon emissions.
VanEck Global Clean Energy ETF (NYSE:XLE)
Another way to invest in the clean energy theme is via the VanEck Global Clean Energy ETF (CLNE). The clean energy ETF provides investors with exposure to a diversified portfolio of 30 of the largest and most liquid companies involved in clean energy production and associated technology and clean energy equipment globally.
Investors gain access to an investment in the global energy supply of the future, which is transitioning to infinite clean energy away from finite non-renewable sources.
The ETF features a diversified portfolio across countries and companies which offers opportunities across a range of subsectors.