It has been fascinating watching Andrew ‘Twiggy’ Forrest’s transformation from an iron ore magnate to a renewables pioneer.
Honestly, I still can’t quite tell exactly how earnest it is sometimes. Often it reminds me of Elon Musk’s rise to fame via Tesla — a corporate ascent that seemed to be about PR more than the actual electric cars.
Given that every move Forrest makes in the renewable space garners plenty of headlines, perhaps he is trying to emulate a bit of that ‘rockstar CEO’ persona.
But I digress…
What investors should really be paying attention to is the money being thrown around. Because as was revealed yesterday, Forrest has just spent $4 billion to secure the takeover of CWP Renewables.
The wind and solar business will now be rolled into Forrest’s own Squadron Energy. Together with several other renewable offshoots, this purchase is simply the latest piece of his expanding renewable energy ambitions.
You certainly can’t deny that Forrest is putting his money where his mouth is.
And it is precisely what is coming out of his mouth that should pique your interest. Because, by all accounts, he’s on a green crusade to overhaul Australia’s energy industry…
Pushing the pace
To give you an idea of how Forrest is thinking, just consider this quote:
‘What Australia needs is that its largest energy companies are all green. And what the world needs is at least half a dozen companies the size of Saudi Aramco that are all green in order to address global warming.’
This mention of Saudi Aramco, in particular, is a puzzling choice of words.
More than likely, Forrest is simply comparing the need for a large green energy supplier that is of the calibre of this Saudi oil giant. The concern, of course, is how much influence a producer like Aramco has over the broader energy market. I don’t think anyone wants to see more energy cartels, whether for fossil fuels or renewables.
For investors, this quote perhaps best showcases Forrest’s ambition. He’s not saying he can turn Squadron into a multitrillion-dollar energy behemoth — but he is saying that is what we need to replace.
That’s why, to make this goal feasible, Forrest’s focus is on fast-tracking the transition. Again, in his own words on the CWP takeover:
‘…they’ve got such a terrific team at CWP, driven by the same values we are, and they’ve got this burning impatience to get on and see the green energy transition of our country expedited for the good of every single Australian.’
It really seems like he’s in this for the long haul.
At the very least, he’s betting big on his investment with both cash and credence.
Along for the ride
Now for you, whether you fully agree with Forrest or not, this presents an opportunity.
Not only is he trying to drag all of us to a cleaner and greener energy future, but he is also laying the foundations for the renewables industry to flourish.
Make no mistake about it, this transition he’s talking about isn’t going to be cheap. That’s why having people with the kind of capital and influence that Forrest commands is key. They kickstart the revolution, and you get to tag along for the ride.
Keep in mind this isn’t just a one-man show either. Earlier this week, Gina Rinehart confirmed that she is dipping her toe into the greener side of energy too. Her investment in rare earths miner Arafura is much smaller than Forrest’s commitment, but for a more conservative businesswoman like herself, it is telling.
That’s why it’s important for you to pay attention.
Because it’s not just about some evangelical energy journey, this renewables boom will mint a lot of wealth for many people, and you’ll want to make sure you are one of them.
That’s why we’ve been so busy preparing our new resources newsletter. Helmed by former geologist and resources expert James Cooper, we’ve seen the writing on the wall for a while now. And you can learn all about the best ways to invest in this trend and James’s insights for yourself right here.
Because at the end of the day, the only difference between Andrew Forrest and you is capital.
You don’t need to be a billionaire to invest in renewables.
You just need to know where the best opportunities lie.
Regards,
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Ryan Clarkson-Ledward,
Editor, Money Morning
Ryan is also co-editor of Exponential Stock Investor, a stock tipping newsletter that hunts down promising small-cap stocks. For information on how to subscribe and see what Ryan’s telling subscribers right now, click here.
