The Ethical Investor: Tapping into the renewable revolution with Macquarie stock

Macquarie’s $7 billion green energy push is helping to drive the future of renewables and clean tech.

Macquarie offers green energy exposure for ethical investors. Picture via Getty Images

• Macquarie offers green energy exposure for ethical investors

• The group's $7 billion play fuels renewable growth worldwide

• Battery storage and clean tech manufacturing to power future

For ethical investors looking to tap into green energy, buying shares in Macquarie Group (ASX:MQG) offers an easy way to gain exposure to the renewable sector.

By investing in MQG, you get indirect exposure to Macquarie Asset Management (MAM)'s extensive portfolio, which includes cutting-edge renewable energy projects and companies shaping the low-carbon economy.

Macquarie’s green investment

The world’s demand for electricity is on a rapid climb, and with that comes a massive opportunity for the renewable energy sector.

This isn’t just about saving the planet; it’s about cashing in on the biggest shift in global power since the Industrial Revolution.

And let’s be clear: green energy is no longer a niche play. It’s THE play.

2023 saw a record $1.9 trillion pumped into clean energy globally – up 10% from the year before and leaving fossil fuels trailing in the dust.

This is a structural shift, not a short-term blip, according to a report from MAM.

Renewables are here to stay, and they’re expected to dominate the energy market for decades to come.

Let’s first talk about solar and wind.

Solar and wind energy projects are cost-effective and fast – getting a utility-scale solar farm up and running takes just 2.3 years on average.

And with costs continuing to fall, solar and wind are set to grow at 10% a year through 2030, said MAM.

Batteries? They’re growing even faster at 25% annually.

For ethical investors, this is a long-term opportunity that’s aligned with the transition to a low-carbon economy.

Clean energy projects

As one of the world’s largest infrastructure asset managers, MAM said it has a unique edge in this space.

The company has invested over $7 billion in energy transition strategies and a portfolio of 35+ private companies that are at the forefront of the green revolution.

“We’re focused on accelerating the global transition to clean energy by working alongside corporates, innovators and governments,” MAM said.

“Our goal is to create sustainable, long-term value through investments that contribute to decarbonising the global economy.”

One of MAM’s biggest plays is Aula, a renewable energy business launched in 2023.

Aula’s already got things rolling with its $228 million Boulder Creek Wind Farm in Queensland – 38 turbines gearing up to catch lots of wind.

And this, MAM said, is just the beginning.

Projects like this are popping up all over the globe, and Macquarie is right in the thick of it.

Battery storage projects

While solar and wind are the headline acts, battery storage is the unsung hero.

With increasing fluctuations in power prices (thanks to the rise of solar and wind), batteries are crucial for balancing the grid.

Over the last year, battery costs have dropped by 24%, and they’re expected to continue falling.

This opens up new opportunities for businesses that can store and distribute power efficiently, providing grid services and taking advantage of power price arbitrage.

MAM said its portfolio company Eku Energy is already ahead of the game, with its Maldon Battery Energy Storage System (BESS) in the UK.

This project is capable of responding in just 350 milliseconds, making it a key player in balancing grid demands.

“Eku Energy is at the forefront of tackling energy storage challenges with state-of-the-art battery storage systems that deliver both flexibility and reliability,” MAM said.

“We see a significant opportunity in this space as the market accelerates.”

With the European market backing energy storage projects with billions in support, the potential for growth in this sector is massive.

Clean tech manufacturing

Clean tech manufacturing, especially in battery production, has emerged as a major investment hotspot.

As the world races to scale up production of electric vehicles (EVs) and renewable energy technologies, investment is pouring into factories that can meet this demand.

In fact, non-China manufacturing investment in clean tech is expected to rise to 36% by 2025, up from just 8% in 2023.

Verkor, a French battery manufacturer backed by MAM, is a great example of this.

Verkor is building one of Europe’s largest gigafactories, aiming to produce 50 GWh of batteries per year by 2030.

With heavyweights like Renault and Schneider Electric involved, it’s clear that this is a major growth area, said MAM.

“The scaling of clean technology manufacturing is critical to supporting the broader energy transition,” MAM said.

“We’re working with innovative companies like Verkor to ensure that the supply chains for these technologies can meet the demand.”

Sustainable aviation fuels

And finally, here’s a sector you might not be thinking about – sustainable aviation fuels (SAF).

As airlines scramble to decarbonise, SAF has emerged as one of the most promising near-term solutions.

Global production of SAF is set to rise dramatically, from 4.5 million tonnes in 2024 to 17.3 million tonnes by 2030.

MAM is backing SkyNRG, a leader in the SAF space.

SkyNRG is already working with major airlines like KLM and Boeing to build out SAF supply chains.

“The development of SAF is key to reducing emissions from aviation,” MAM said.

“SkyNRG is a standout in this field, and we’re excited to support their growth as they expand production capacity.”

With long-term purchase agreements already in place, this market is primed for growth, and investors who move early are likely to benefit, according to MAM.

This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decision.

Originally published as The Ethical Investor: Tapping into the renewable revolution with Macquarie stock