Climate Tech & Carbon
Climate technology — decarbonisation, carbon capture, green hydrogen, and sustainable materials — attracted over $1 trillion in investment in 2023 alone. Government policy from the US Inflation Reduction Act to European Green Deal is creating structural demand for clean technology. The companies building the hardware, software, and services for a lower-carbon economy represent one of the largest capital allocation opportunities of the next 30 years.
The world's largest generator of renewable energy from wind and solar. NextEra Energy Resources develops projects; the utility subsidiary FPL serves Florida. Has delivered compound annual returns over 12% for two decades while transitioning to clean power. The benchmark clean energy utility.
Makes microinverters — the electronics that convert solar panel DC output to AC power. Dominates residential solar electronics in the US. Also sells home battery storage systems. Enphase is the picks-and-shovels play on rooftop solar.
The only US-headquartered solar panel manufacturer at meaningful scale. Uses cadmium telluride thin-film technology rather than silicon — cheaper to produce and less dependent on Chinese supply chains. A key Inflation Reduction Act beneficiary with multi-year order books.
Makes solid oxide fuel cells that generate electricity from natural gas or hydrogen with dramatically lower emissions than conventional power. Increasingly being sold to data centres as reliable, lower-carbon backup and primary power.
Focuses on green hydrogen — producing and distributing hydrogen generated from renewable electricity. Hydrogen is a potential solution for hard-to-decarbonise sectors like shipping, steel, and aviation. High risk given the scale of infrastructure investment required.
Scores 9/10 for Energy Transition.
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