Electrification is driving copper demand, and the “decarbonizing” of energy is driving biofuels
Transcript
| Danton Goei: | this move to electrification, that's going to require a lot more copper, whether it's in buildings, or certainly electrification of vehicles. Electric vehicle requires four times the amount of copper in an EV, versus an internal combustion engine car. So, we own a company called Teck Resources, which is one of the leading copper companies in the world. And in fact, that value has become so apparent now, that a number of other companies have put bids out there for it. So, I think it's a really attractive company as Teck Resources, we think the valuation, we like management a lot, love their market positions. They're bringing on a new mine that's going to really increase their capacity for copper production by meaningful amount. So, that is one way. Another way is this idea of decarbonizing energy. And so we own a company called Darling, which is a US company. They just came actually, the CEO and the entire management team came into our offices in the past week, so we were just talking to them. And there, the idea is finding ways to create biofuels or lower carbon. Or use assets that are repurposed to create energy and fuel. And so this company, and they have these long-term contracts, and they own collection companies that collect all of the leftovers from rendering, and slaughterhouses, as well as used cooking oil from restaurants. So, a difficult network to set up, but they've been doing this for decades now. And actually repurposing that and creating biofuels out of it. And they've also created a JV to make these biofuels. So, that is another way, where it's not... they don't own oil fields and they don't own gas fields, but they are very much in the heart of thinking about this energy transition and decarbonization. And even creating an alternative jet fuel out there, which is one of the hardest areas to decarbonize. Because it's very difficult to say, "Create an electric engine for a plane." And so this is one way that we've been thinking. So, we do have a lot of discussions and thoughts about how to take advantage of this energy transition that's happening out there. And there are some really interesting investment opportunities |
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