Investors back electrification minerals over fossil fuels

New research released by The Australia Institute has found that investors are overwhelmingly investing in electrification minerals rather than fossil fuels. 

Last year 42 electrification resource companies listed on the Australian Stock Exchange (ASX), compared to just one fossil fuel company, the institute said. 

Electrification resource companies mainly look for copper, nickel, lithium cobalt, graphite and rare earths, which are used in the process of making electric items and renewable energy. 

“Investors clearly see that the future of energy is generating and storing renewable electricity, not burning fossil fuels,” said Rod Campbell, research director at the Australia Institute.

At the same time 18 global banks with clear net zero commitments including NAB, ANZ, and Westpac have decided to fund a US$3.49 billion Global Infrastructure Partners (GIP) purchase of a 49% stake in the Pluto LNG Train 2 gas processing facility equivalent to 15 coal power stations.

The Australian government’s Technology Investment Roadmap calls for advances in carbon capture and storage technology, without any net zero emissions targets or climate plan. However, the findings from The Australia Institute show that investors are betting that renewable energy and electrification (not fossil fuels) are the way of the future. 

“This does not mean that there are not still large fossil fuel companies taking investment in Australia, clearly there are, but the data on new listings shows where investors see the industry heading in the future,” Mr Campbell said.

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