Firm CEO highlights commodity and technology sectors set to benefit from transformative energy themes
“We need more nuclear energy, more wind energy, and more solar energy. We also need to look at other fuel sources, like hydrogen.”
That’s according to Steve Hawkins, president and CEO of Horizons ETFs, in a recent interview with Wealth Professional.
During the in-depth conversation, Hawkins spoke to how his firm is committed to helping investors meet the long-term challenge of transitioning into a new energy regime that relies on sources other than crude oil and natural gas.
“We look at investing in lithium, uranium, and hydrogen technology … as long-term growth strategies,” said Hawkins.
Horizons ETFs has added three mandates in recent years to provide investors with exposure to those emerging alternative energy trends.
The first was the Horizons Global Uranium Index ETF (HURA), which was Canada's first ETF to provide exposure to uranium mining and exploration businesses as well as the physical price of uranium.
Uranium equities have had a resurgence in the previous two years, and Hawkins expects that trend to continue as nuclear energy demand grows. China aims to invest $450 billion over the next five years to build 150 reactors. The US administration has set aside funds to maintain current nuclear plants and build new ones, which is critical given that numerous states still rely on coal.
Horizons ETFs also introduced the Horizons Global Lithium Producers Index ETF (HLIT) and the Horizons Global Hydrogen Index ETF (HYDR) in 2021, marking two more Canadian firsts for exposure to breakthrough alternative energy commodities.
Batteries, smartphones, and electric vehicles all rely on lithium. Between 2020 and 2030, lithium demand is predicted to climb by almost 400 percent.
Hydrogen is also projected to be a revolutionary energy source in the replacement of fossil fuels because it produces no carbon emissions as a by-product of its use. Hydrogen fuel cells are being employed in commercial vehicles and industries where decarbonization is challenging, such as rail and ship transportation.
"We think people should consider investing in these underlying commodities and technologies, which are really going to be at the forefront of the global energy market in the near and long-term future," Hawkins said.
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