To identify key players riding on the clean energy trend, Breidert and his co-PM Michel Sznajer start with a global universe of about 1,470 listed infrastructure stocks. They then search the database for owners of power generation and grids that meet the liquidity thresholds of a minimum of $200 million market cap and average daily trading volume of $5 million.
"If you use renewables to crack water, you can create green hydrogen, you can then use that hydrogen and fuel cells directly," he said. "Or, potentially, you could use the green hydrogen as a precursor to fuel, to create zero net-carbon hydrocarbons.", where Breidert believes renewable electricity and renewable assets are likely to play a meaningful role.
But some companies have already set themselves up to capture the explosive growth ahead, in Breidert's view. , a European integrated utility and renewable energy development company that counts North America as one of its primary markets. "What's happened is that the cost of producing wind electricity in China is now actually cheaper than it is to produce with coal," he explained. "So we don't need any subsidies going forward. We're not worried about that cash flow stream looking forward decaying the returns to the projects that the company is going to build in the future."
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