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Investment Strategy : Sectors

Criteria | Guiding Principles | Sectors

Renewables: Energy harnessed for the production of electricity/thermal using low carbon technologies. The electricity/thermal can be sold into the grid or distributed generation. Renewable Energy in the context of the Asia market is currently focused on proven and reliable technologies: hydro, wind, biomass, biogas, solar PV, solar thermal and geothermal. Technologies still under development which may have some application in the Asia region are tidal and wave. Compared to conventional fossil fuel power plants the projects are relatively small with a large project being 100MW and an average size project in the 10MW-30MW range for a biomass plant. Small run of river hydro sites and biogas are usually under 10MW.

Transport and Transportation Fuels: Production of transportation fuels from agricultural feedstock. The distillation process for the production of ethanol from sugar and corn is well developed in Brazil and the USA, respectively. The production of biodiesel from vegetable oil has been well developed in the EU using rape seed. Other technologies currently being commercialized are pyrolysis and gasification. Technologies under development include cellulosic ethanol. Given the benefits associated with import substitution of oil with an agricultural cash crop to help promote sustainable long term development of the rural economies plus the cost advantage of producing the biofuels in Asia versus the USA or EU, the potential for the growth in biofuels in Asia is significant.

Energy Efficiency: With fossil fuel energy pricing, investments into products and services that can reduce energy consumption become more attractive as the pay back periods for the investments are shortened and the return on investment becomes more attractive. Areas of interest in the Asia market are both the supply side with cogeneration and other technologies to improve efficiencies on the supply of power and the demand side with monitoring and process and flow control.

Carbon: Related to the development of sustainable renewable/alternative energy is the growing market in carbon trading underpinned by the Kyoto Protocol. Most alternative/renewable energy technologies and projects will produce carbon credits and we look to trade and maximize the value of the carbon credits. As a general policy, we will not pursue opportunities where the economics of the projects are wholly dependent on the carbon credits for economic viability.