The Global Energy Transition Depends on Pioneering innovations
FinancialNewsMedia.com News Commentary
PALM BEACH, Fla. , April 28, 2022 /PRNewswire/ -- The global energy transition depends on innovation. The world needs scientists and innovators to design planet saving solutions. From carbon capture, to recycling, industrial ingenuity is required to reinvent the wheel and present a range of innovations that will transform civilization and reimagine the future of life on earth.
Of course, many companies and individuals are already hard at work on ground-breaking discoveries, efficient ways of working, and trailblazing strategies. These will go a long way to ensuring life continues to thrive.
Microsoft Corporation (NASDAQ:MSFT) pledged to become carbon negative by 2030. This means it strives to remove more carbon than it emits. BP p.l.c (NYSE:BP) is reimagining energy, using its extensive experience and expertise to find the best routes to a cleaner future and Tesla, Inc. (NASDAQ:TSLA), of course, is pioneering the future of electrification.
But it's not just the world's industrial giants taking leaps of faith and in fact, it's often the smaller companies that can make the biggest advances, particularly when it comes to compounding shareholder returns.
STREAMLINING LITHIUM PRODUCTION
Arena Minerals (OTCQB:AMRZF) (TSX.V:AN) (CVE:AN) is rethinking the way the industry produces lithium brine with a proprietary process and innovative approach to extracting lithium brine from the world's richest resources.
The company boasts an impressive technical team, and its proprietary reagent could change the way industry sources future lithium.
This reagent is expected to improve lithium concentration in evaporation ponds from less than 1% to over 6%. This would allow lithium chloride to be produced directly from evaporation ponds, eliminating the need for a chemical plant on site.
Arena's superior pioneering process potentially both reduces CAPEX and OPEX costs while dramatically reducing technical and economic risk.
Indeed, Arena's process is unique, potentially cost saving and less risky than other conventional methods. Furthermore, its timing is impeccable as it catches the wave of soaring lithium demand.
BACKED BY INDUSTRY'S FINEST
Arena's operations strike the high-grade resource of two quality salars in Argentina. This helped attract two prominent strategic investors, namely Ganfeng Lithium Co Ltd and Lithium Americas Corp. Each owns approximately 18% of the company, thereby seeming to endorse Arena Minerals' business model and its potential for success.
In early April, Arena Minerals completed the drilling of its first diamond drill hole (DD-02) at its Sal de la Puna Project in Argentina. Here, on the Almafuerte claim it intersected a continuous brine column from 140 metres to 646 metres below surface.
The upshot of the drill shows a 300-metre gravel aquifer averaging 503 Mg/L of lithium.
These drill results exceeded management expectations displaying high grade lithium values and favourable geochemistry. The company has now mobilized an additional drill rig to meet its development timelines.
SEVERAL PLUS POINTS
Over the past forty years, only a handful of successful lithium brine operations have been built, and the team leading Arena Minerals has been associated with and heavily involved in some of the industry's biggest deals.
Furthermore, Arena believes it may have one of the lowest carbon footprints of any lithium producer out there as it's almost entirely reliant on solar energy. Harnessing the sun's powerful rays to power the discovery of resources vital to the future of humanity gives Arena a fitting edge.
Better still, Arena Minerals has very little in the way of direct competitors.
Considering the experienced team, heavy-weight investors, solar-powered evaporation pools and cost-saving processes, Arena Minerals presents a rare opportunity to invest in a remarkable company with an exciting journey ahead.
INNOVATION DRIVES RESULTS
As Arena's unique process and proprietary reagent illustrate, diversification and innovation are driving impressive results across many industries.
Microsoft Corporation (NASDAQ:MSFT) reduced its carbon emissions by 6% (around 730k metric tons) in its first year since making its carbon negative pledge. It also purchased the removal of 1.3 million metric tons of carbon from 26 projects around the world. The company continues to deliver long-term revenue and profit growth.
Likewise, BP p.l.c (NYSE:BP) reported an excellent fourth quarter in 2021 with further reduction in net debt and $4bn stock buyback. It's accelerating its integrated energy strategy, growing its offshore wind portfolio while also witnessing impressive momentum in seven major projects.
Tesla, Inc. (NASDAQ:TSLA) meanwhile continues to confound analysts and doubters around the world as the company continues to impress and keep investors engaged. Last year Tesla delivered over 936k vehicles. Plus, its operating margin beats its EV peers' hands down, at 14.7% while its gross margin has been growing steadily Y/Y to 25.4% in 2021. In Q1 2022 it reported net earnings over seven times higher than Q1 2021. Keeping ahead of the game with original ideas and a high functioning streamlined business model is the name of the game.
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