On the frontline of the energy transition with Dr Christian Bruch

As the world navigates energy shortages, inflation remains elevated, and fossils fuel investments outperform, the tone surrounding the decarbonisation and net zero conversation has certainly changed over the past year. 

However, Government-mandated targets remain in most parts of the world and there can be no denying the importance of renewables in supporting energy security now and into the future.

So, what will it take for the world to reach net-zero targets and what are the bottlenecks?

This was at the core of a discussion I had with the CEO of Siemens Energy, Dr Christian Bruch. He provided insights into the enormity of the scale of investment required to transition to net zero.

Some of the numbers he mentions are so large it’s hard to get your head around them. For example Dr Bruch explains the annual installation of offshore wind turbines needs to increase by 7-8x to meet 2030 targets, and Siemens Energy has 65% share of global offshore wind installations.

Similarly, the annual investment in the grid needs to at least double by 2030, as the grid needs to be rebuilt and extended to distribute renewables. 

He also discusses the outlook for gas which he believes is more promising than the market believes, as gas can become the low carbon backbone as intermittent generation ramps up.

These insights can help you understand why decarbonisation remains a generational investment cycle that can't be ignored - the challenge for investors is finding well-rounded and attractively-priced decarbonisation exposures.  

Siemens Energy (ETR: ENR) is a key holding in Antipodes' global portfolios. As a world leader in wind turbines, utility scale gas turbines and grid transmission equipment, it is a company at the forefront of the transition to net zero and one which can benefit from that enormous scale of investment required. 

We also view Siemens Energy as one of the few remaining attractively-priced decarbonisation investment opportunities. It is priced at around 5x our estimated 2025 EV/EBITA, as the market ignores its embedded structural growth potential. 

You can listen to my full conversation with Dr Bruch below, or on Spotify, Apple or Google Podcast. 

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Antipodes is an award-winning investment manager, providing investors access to long only and long/short global equities portfolios. Visit the Antipodes website, or follow the team on LinkedIn.