Ella Smith's blog : The Energy Transition is Doomed. It Will Also Succeed
The Goodnight Group highlights the obstacles within the energy transition, including the high production costs, environmental greenwashing, and logistical challenges of hydrogen and electric vehicles. Founder, David Goodnight, emphasizes the need to support technological advancements via innovative financial instruments and specialty insurance to commercialize new technologies.
By 1880, there were 150,000 horses in New York. It was predicted that by 1930 horse manure would reach the level of Manhattan’s third-story windows. At the time, the unknown solution was an advancement in technology by a little outfit now known as the Ford Motor Company.
The combustion engine and Henry Ford revolutionized the world. By 1912, cars in New York outnumbered horses. The Hydrogen, EV, wind, and solar manufactured today are not our savior, but technological advancements will be, just as Mr. Ford’s ingenuity took New York out of the horse (manure) and buggy era.
The world is in a similar predicament with the green-ish energy transition. Hydrogen is costly to produce and consumes massive volumes of clean water and fossil-derived power. Hydrogen cannot be distributed through the existing fossil infrastructure, such as pipelines and gas stations. The investment to make hydrogen conveniently available is unfathomable. Electric vehicles are just as challenged with rare earth mineral mining and power arriving from fossil sources. The world is progressing with wind and solar. However, these sources are far from “green” with expired solar modules and non-recyclable turbine blades retiring in landfills.
New technologies are viewed with skepticism by regulators, investors, and lenders. The truest supporting bridge to the energy transition will derive from the underwriting of technology performance policies.
It's virtually unknown to inventors and developers that there are insurance firms that employ thousands of engineers and scientists. These professionals are now open to evaluating new technologies in hopes of providing specialty coverage that will comfort lenders and investors. A more efficient process to generate and transport a new fuel or a zero rare earth mineral battery likely already exists in a humble workshop.
These new policies will guarantee 100% of the debt and up to 70% of equity risk. In simpler terms, if the nerds validate the technology a project can secure 94% project finance coverage that lenders will support. At this point, a project owner will still need capital from friends and family, grants, angel investors, or equity crowdfunding. Equity crowdfunding is not to be confused with pre-purchasing an artsy product, it will become a treasured solution to complete the capital stack. If a project owner intends to seek out private equity for a million-dollar check, they should prepare to become an employee of the company. Whereas, raising funds from thousands of individuals will carry the opposite outcome. Platform investors will believe in the founder, technology, and company mission over shareholder pressure and controlling interest.
David Goodnight of Austin, Texas, is the Founder and Managing Partner of The Goodnight Group and Comnet International. The Goodnight Group is an investor-developer and Comnet International is a project finance and trade advisor. Both companies have separate interests to assist innovation.
Media Contact:
Contact Person: David Goodnight
Company Name: The Goodnight Group & Comnet International
Address: 501 West 6th St. Austin, TX 78701
Email: media@comnetlimited.com
Website: https://www.goodnightgroup.com/
Twitter: https://x.com/goodnighttexas
LinkedIn: https://www.linkedin.com/in/david-goodnight-65864b237/
- Expert