The world at the crossroads of energy supply
Anyone who stepped outside during the summer of 2022 was met with a brutal heat wave. Typically, the hot season is associated with swimming in a cooling lake or sunbathing on a green meadow. This year, however, the high temperatures turned every movement and every moment spent outdoors into an exhausting ordeal. These high temperatures reminded us—if we had not realized it already—of something that the air conditioning of a well-tempered office often lets us forget: the world is gradually becoming too hot.
Wildfires, floods, and rising sea levels are forcing us to rethink. People speak of the much-cited climate crisis, but in reality, it is an energy crisis. In 2022, there are an estimated 7.95 billion people on our planet. According to the online platform Statista, their number has tripled since 1950. All these people need energy, which is currently primarily sourced from coal, oil, and gas. This cannot continue. To reduce the greenhouse effect caused by CO₂ emissions, the world has therefore decided to shift to renewable energies. The future thus lies in wind power, solar energy, and “green” hydrogen.
However, an energy transition also means a commodities transition. Time is of the essence. Not only climate change but also Europe’s dependence on Russian gas is forcing us to switch to other energy commodities. Indium, Gallium, and rare earths such as neodymium oxide are increasingly replacing oil, gas, and coal because they are needed to build wind turbines and solar power systems. Consequently, logistical infrastructure is being reorganized worldwide to bring these commodities into the country.
For instance, England’s new Prime Minister will need a plan to achieve the 2050 climate targets. The British Economic Affairs Committee is calling for an acceleration of the transition to renewable energies and the establishment of measures to strengthen supply chains. Australia’s new government is focusing on a massive expansion of renewable energies and could soon become an important commodities partner for Europe. Meanwhile, the USA aims to become independent of China and is therefore promoting rare earth production within its own borders.
And what is Germany doing? The topic of “security of supply” has now reached the mainstream. To reduce the vulnerability to blackmail by autocratically governed countries—as experienced with gas during the Ukraine conflict—the government intends to diversify supply chains. However, expanding production in Canada and Australia takes time. And although there are domestic reserves of germanium, gallium, and rare earths, it can take up to 20 years for a new mine to begin operations.
While gas storage facilities filled to 90% promise to get us through the winter, the situation for technology metals and rare earths is quite different. Here, storage levels are only at about 10%. To avert a true ice age for the industry, the government is therefore considering state stockpiling of production-critical metals. However, this would most likely only lead to China imposing an export ban.
The solution is therefore private-sector storage, as currently offered by a handful of companies in Germany. Progressive firms such as Noble BC not only offer private investors a secure and forward-looking investment opportunity but also enable them to contribute to the security of supply for local industry.
The goal of all these efforts is to create a future worth living for our children. A future where fresh water flows, we breathe clean air, and in summer, we swim in cooling lakes, lie on the grass, and enjoy refreshing drinks.