Anti-ESG: Value of Investing in the Old Economy Rises as Investors Seek Return to Profits
June 24th, 2024
Written by Matthew McKean, CEO and co-founder of Frontieras North America (LinkedIn)
Abundant, affordable, and available energy. These three adjectives define energy as a commodity, investment, and foundation for society to advance. Energy is a part of the necessity market, equivalent to clean air and water. Energy powers homes, industries, and transportation systems that allows for a standard of living that includes modern conveniences and technological advancements, spanning from the simplest of tasks all the way to artificial intelligence.
Reliable energy sources drive economic growth by supporting industrial productivity, innovation, and job creation. Over the past decade, we have seen specific countries alienate and demonize the use of hydrocarbons in support of greener initiatives, including wind and solar. Politicians have campaigned on ESG initiatives, resulting in new legislation, policies, and the redirection of trillions of committed taxpayer dollars to subsidize this movement.
While large corporations have benefited from the money garnered from government subsidies, the individual investor has not been so lucky. To address this, we have seen a significant rise in anti-ESG funds that are focused on the old-economy commodities that drive this country forward. This includes identifying companies that are creating a profit, driving revenue, and not relying on government subsidies. An example of these anti-ESG investments is the processing of coal to meet the growing demand of energy to drive this country forward.
Frontieras North America is preparing to disrupt the energy market and, in doing so, bring value to the individual investor.
Fronterias FASform™, a proprietary patented technology designed by Frontieras’ parent company, Frontier Applied Sciences, is an industrial process that produces large volumes of market-ready liquid hydrocarbons from the world’s most abundant energy source: coal and other volatile-rich solid carbonaceous materials, including waste plastics. Specifically, FASForm technology yields high volumes of hydrogen, natural gas, jet fuel and diesel and a designer carbon product suitable for steel manufacturing or as a replacement fuel for coal plants to measurably improve emissions.
Frontieras is unique in its approach to rewarding the shareholder community. With a viable solution that has real value to the general population, Frontieras’ value- proposition to investors is captured in many ways:
Frontieras FASForm technology capitalizes on the intrinsic value captured within coal.
Frontieras is supplying products to an established market that has both direct and indirect buyers.
Frontieras has already aligned the purchasing of its solutions with key off-take agreements that allow investors to measure the return based on the volume of production.
Frontieras is committed to increasing shareholder value and providing a stream of dividends.
Evolving Energy Market
Frontieras as a traded entity is timely given the current state of the energy market as it looks to rebound from decades of decline.
The focus on ESG has had a ripple effect across the ecosystem of energy production, from exploration and processing centers to the pumps at your local gas station. Investments have slowed as some industry energy leaders redirected capital expenditures to green initiatives that were government subsidized. Over the years, this lack of investment has created gaps in our ability to produce and sustain energy independence, support our growing population, and meet new energy needs created by innovation. A combination of three recent global events highlights our country’s energy vulnerability:
World Conflict: The global energy market relies on the cooperation of different countries working together to meet the needs of their citizens. Russia’s ongoing conflict with Ukraine has disturbed the flow of energy in Eastern Europe, the sabotage of Nord Stream I and delaying the activation of Nord Stream II. This has negatively influenced the flow of many types of energy.
Innovation: The rise of artificial intelligence has placed a huge demand on energy to process and support its use. This is significant as artificial intelligence is in its infancy, and experts are already expecting it to demand 10 times its current energy usage in the coming years.
Policy and Legislation: Pandering to a small contingent on the left, the United States and other developed countries continue to create legislation that hinders the creation of energy-associated hydrocarbons. Politicians have promoted green initiatives that include wind and solar to secure votes and redirect trillions of dollars in the form of government subsidies. Twenty years in, we still don’t have the technology pathway to ensure that green energy can meet the needs of citizens.
What people don’t consider is that our energy market extends well beyond our local state borders across the world. The energy market is based on a mutual understanding of supply and demand. Some countries are energy-rich with vast amounts of natural resources. For a cost, these valuable resources have been shared with other countries. This has allowed some countries to advance, keep their citizens safe, and allow industries to grow. In other countries, we are seeing the use of energy as a driving force to help nations evolve. This is showcased by both China and India and their continued investment in coal as a reliable energy source.
Frontieras, with its advanced state-of-the-art technology, is poised to help fill the void created by a lack of attention and funding. In the coming weeks, Frontieras will be offering individual investors the ability to participate in its financial offering.
These perspectives on the global energy market are my own. If you are interested in learning more about Frontieras, its FASForm technology, or the Frontieras management team, please visit www.frontieras.com.