Blue Energy Limited (ASX: BUL) announced about its Energy and Mineral Conference presentation held at Brisbane. In the presentation, more emphasis has been given over global case on improving air quality, cleaner power and industrial and residential plastics.
As per the presentation, fuel switching from coal to gas improves lives in Asia and China is moving rapidly in this direction. In developed economies such as the US, gas energy technology has reduced carbon dioxide (CO2) emissions to 1990 levels, resultantly increasing US GDP. As per US Energy Information Administration, in 1990, CO2 emission stood at around 5000 mn metric tons, and it is projected to remain same till the year 2050.
Growth in industry, plastics, power and residential sectors is driving the gas demand. It is expected that population growth will drive the gas demand at a CAGR of 2% till the year 2035. Gas demand in sectors such as power, industry, residential & commercial and transportation is expected to grow by 41%, 29%, 25%, and 5%, respectively till the year 2035.
Shell, BP, and others are quite confident over the demand growth, and hence investing heavily globally to boost their market share. Overall, the energy demand is forecasted to grow at 1% CAGR until 2035. Under it, gas demand will contribute 41%, whereas other energy sources such as renewables, oil, nuclear, coal, and other will contribute 30%, 15%, 6%, 4%, and 4%, respectively in the energy demand till the year 2035.
North American countries are expected to witness the highest gas growth above 30% followed by Europe, China, and India until 2035. Around 45,528 MW of new energy generation is proposed in Australia. The gas energy will be in demand to firm up solar and wind energy to stabilize the frequency of the grid.
Huge correlation has been observed between renewables and electricity prices, where more renewables resulted in higher electricity prices. The trend depicts, with an additional kW of capacity, there has been an increase in price by 0.02 cents per kW hour. Country-wise, Denmark and Germany had electricity costs close to 30 cents per kW hour for installed capacity (renewables) of ~1000 watts per capita as compared to Hungry and Poland, where electricity costs stood below 15 cents per kW hour for installed capacity (renewables) below 200 watts per capita.
Going by the current scenario, the LNG demand is expected to surpass supply by more than 200 MTPA by the year 2035. The global gas giants have started developing supply capacity to fill the gap and build the market share. China and India are doubling their import/regas capacity in the next four years.
At the market close (on March 27, 2019) the stock of Blue Energy was trading at $0.063, up 14.545% with the market capitalization of $64.67 million. Today, it made day’s high at $0.063 and day’s low at $0.056 with daily volume of 1,687,452. Its 52 weeks high was at $0.155 and 52 weeks low at $0.038 with an average volume of 954,904. Its absolute return for five years, one year and six months are 14.58%, -56%, and -12.7%, respectively.
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