Rosneft Boss Says High Costs, Elusive Targets are
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Posted On: 12/10/2024 4:40:00 PM
Rosneft Boss Says High Costs, Elusive Targets are Compromising Investment in Clean Energy
Rosneft Chief Executive Officer Igor Sechin says high costs coupled with elusive targets are driving investors away from the burgeoning green energy industry. During a recent United Arab Emirates conference, the head of the largest oil producer in Russia noted that the green transition is losing investors due to a critical lack of financing coupled with astronomical costs and elusive green energy targets.
Igor Sechin’s opinion on climate change is controversial; he says scientists have overestimated humanity’s role in climate change and has expressed skepticism of the global green agenda. But despite the West’s determination to ditch fossil fuels for clean energy, Sechin notes that enthusiasm for green energy within stock markets in the West has waned in recent years while renewable energy production companies have seen their stocks fall ‘several times’ over the past couple of years.
According to the oil executive, this is largely because investors are losing confidence in the green energy industry’s ability to deliver its objectives on schedule amidst rising project costs, limited financing options, and delays in government-issued loans. The renewable energy industry is extremely cost-intensive, and projects typically require immense financing to start before taking years to provide a return on investment.
Furthermore, projects that get off the ground and begin producing renewable energy can spend months or even years waiting to connect to the grid due to connection bottlenecks, meaning green energy investors can wait even longer before their investment pays off. This makes renewable energy an incredibly risky investment, especially if there isn’t a larger pool of green energy investors to spread the risk.
Sechin also noted that major energy industry players like Chevron discontinued producing alternative fuels as investment in alternative fuels and renewable energy slowed down to a trickle. The risk, high capital requirements, and long time-frames involved in green energy projects are causing fossil fuel firms to reduce their investment in green energy as investors push for certain projects that can guarantee larger payouts.
While Sechin offers an opinion from the other side of the spectrum (the fossil fuel industry), his observations paint a grim picture for the global green energy sector. Dozens of countries have set ambitious renewable energy goals amidst a global effort to curb greenhouse gas emissions across the most energy-intensive industries and mitigate the effects of climate change.
As things stand, most countries will be unable to meet their 2030 clean energy goals and will most likely find it incredibly difficult to achieve carbon neutrality by 2050. Governments and industry leaders will have to find ways to deal with the issues affecting the green energy industry, particularly the lack of funding, to ensure renewable energy adoption is on track to meet global climate change goals.
Fortunately, companies like First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF) are focused on ensuring that the minerals, such as copper and tellurium, which are needed during the green energy revolution will be readily available to be used in the manufacture of solar panels, wind turbines and other clean energy systems.
NOTE TO INVESTORS: The latest news and updates relating to First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF) are available in the company’s newsroom at https://ibn.fm/FSTTF
Please see full terms of use and disclaimers on the GreenEnergyStocks website applicable to all content provided by GES, wherever published or re-published: https://www.greennrgstocks.com/Disclaimer
Rosneft Chief Executive Officer Igor Sechin says high costs coupled with elusive targets are driving investors away from the burgeoning green energy industry. During a recent United Arab Emirates conference, the head of the largest oil producer in Russia noted that the green transition is losing investors due to a critical lack of financing coupled with astronomical costs and elusive green energy targets.
Igor Sechin’s opinion on climate change is controversial; he says scientists have overestimated humanity’s role in climate change and has expressed skepticism of the global green agenda. But despite the West’s determination to ditch fossil fuels for clean energy, Sechin notes that enthusiasm for green energy within stock markets in the West has waned in recent years while renewable energy production companies have seen their stocks fall ‘several times’ over the past couple of years.
According to the oil executive, this is largely because investors are losing confidence in the green energy industry’s ability to deliver its objectives on schedule amidst rising project costs, limited financing options, and delays in government-issued loans. The renewable energy industry is extremely cost-intensive, and projects typically require immense financing to start before taking years to provide a return on investment.
Furthermore, projects that get off the ground and begin producing renewable energy can spend months or even years waiting to connect to the grid due to connection bottlenecks, meaning green energy investors can wait even longer before their investment pays off. This makes renewable energy an incredibly risky investment, especially if there isn’t a larger pool of green energy investors to spread the risk.
Sechin also noted that major energy industry players like Chevron discontinued producing alternative fuels as investment in alternative fuels and renewable energy slowed down to a trickle. The risk, high capital requirements, and long time-frames involved in green energy projects are causing fossil fuel firms to reduce their investment in green energy as investors push for certain projects that can guarantee larger payouts.
While Sechin offers an opinion from the other side of the spectrum (the fossil fuel industry), his observations paint a grim picture for the global green energy sector. Dozens of countries have set ambitious renewable energy goals amidst a global effort to curb greenhouse gas emissions across the most energy-intensive industries and mitigate the effects of climate change.
As things stand, most countries will be unable to meet their 2030 clean energy goals and will most likely find it incredibly difficult to achieve carbon neutrality by 2050. Governments and industry leaders will have to find ways to deal with the issues affecting the green energy industry, particularly the lack of funding, to ensure renewable energy adoption is on track to meet global climate change goals.
Fortunately, companies like First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF) are focused on ensuring that the minerals, such as copper and tellurium, which are needed during the green energy revolution will be readily available to be used in the manufacture of solar panels, wind turbines and other clean energy systems.
NOTE TO INVESTORS: The latest news and updates relating to First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF) are available in the company’s newsroom at https://ibn.fm/FSTTF
Please see full terms of use and disclaimers on the GreenEnergyStocks website applicable to all content provided by GES, wherever published or re-published: https://www.greennrgstocks.com/Disclaimer
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