A Random Pie Chart That is a Window to Clarity

For Friday 14 May 2020 provided by Ecoprofit.com.au (#letsfindsolutions)

News for green investors and organisations, stock watch & grant opportunities

A Random Pie Chart That is a Window to Clarity

The pie chart image above is a randomly selected image from Google. It represents a summary of global carbon emissions. As you can see, there are five categories.

Global carbon emissions came in at about 36 billion tonnes in 2019.

How can we make the 36 billion tonnes per annum go away?

What happens if electricity is fully renewable; there goes 33% or 12 billion tonnes. What happens if transportation is fully renewable; there goes 28% or 10 billion tonnes.

What happens if we reduce industry emissions by 10%; there goes 3.6% or 3.6 billion tonnes. What happens if we reduce commercial & residential emissions by half; there goes 2 billion tonnes.

What if we reversed net agriculture emissions (via regenerative agriculture) from a negative 8% emissions to a positive 10%; there goes 8 billion tonnes (giving extra to cover the embedded emissions of renewable systems).

Result: net zero??Let?s do it!

We have the technology, or it is just around the corner to achieve net zero. We just need the will!

Australia is in box seat to become world?s new rare earths powerhouse

China now produces 80% of the world?s neodymium-praseodymium output, a combination of rare earth metals vital to the manufacture of high strength permanent magnets. These magnets are used in drivetrains of electric vehicles (EVs), so the expected EV revolution will require growing supplies from?rare earth miners.

Every EV drivetrain requires up to 2kg of neodymium-praseodymium oxide ? but a three-megawatt direct drive wind turbine uses 600kg. Neodymium-praseodymium is even in your air-conditioning unit on the office or home wall. These magnets are three times stronger, and one-tenth the size of conventional magnets.

But, according to some forecasts, China will in the next few years need to become an importer of neodymium-praseodymium and, as it stands, Australia is the country best positioned to fill that gap.

Thanks to?Lynas Corporation (a share profiled in an earlier Everlution Newsletter), the country is already the world?s second largest producer of rare earths, although it still only generates a fraction of China?s output. However, there is much more to come. Four Australian companies have very advanced rear earths projects, where the focus is on neodymium-praseodymium as the key output. Three of those are located within Australia and the fourth in Tanzania.

Of the other global players, the US has the Mountain Pass mine, but that relies on China for processing its output. There are various other North American projects, but none are what might be regarded as construction-ready.

India, Vietnam, Brazil and Russia produce modest quantities; there is an operating mine in Burundi, but none of these have the capability to create a national industry with critical mass in the short term.

Grants/Subsidies/Funding ? R&D Tax Incentive (Part 2)

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Eligible R&D activities must either be:

  • Core R&D activities. These are systematic, hypothesis-driven experimental activities with an unknown outcome and based on the principles of established science, undertaken to generate new knowledge (including new knowledge in the form of new or improved materials, products, devices, processes or services), or
  • Supporting R&D activities. These are activities that are not part of the experimental activities, but directly support them.

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Registration:

The programme is accessed by registering self-assessed R&D activities with the department. This must be done within 10 months of the end of the company?s income and claiming for eligible expenses relating to the registered activities in the company?s tax return.

Companies applying to register for the R&D Tax Incentive must self-assess their activities against the legislated eligibility criteria. When a registration is accepted this does not mean that the registered activities have been determined to be eligible. The department routinely examines registrations in detail for compliance and may contact companies for further information.

Registering companies must maintain adequate records that can allow self-assessment by substantiating the eligibility of R&D activities. Companies must ensure expenditure claimed for R&D activities is based on genuine financial records, as is the case for any element of their tax return.

Companies wishing to get an assurance whether particular activities they are currently conducting, or are intending to conduct, are eligible R&D activities may apply to the department for an Advance Finding.

Go to: https://business.gov.au/grants-and-programs/research-and-development-tax-incentive/help-guides-and-resources for more information.

Part 3 of the R&D Incentives summary follows in the next Everlution Newsletter.

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Eco-tip for the day ? Size is everything

To maximize return on investment of a photovoltaic system (solar system), make sure it is the right size for your needs. Size is measured in terms of the kilowatts (kW) of power generation it can provide your home. The amount of kilowatthours (kWh) generated by each kilowatt varies, depending on where you are in Australia, but a rule of thumb can be applied of 4 hours on average generation per day i.e. 4 kWh for every kW of power.

To work out correct size, start by working out how many kilowatt hours of electricity you are using in daylight hours. This can be done by attaching a logger to the incoming power line in your meterbox or by evaluating the amount of power individual equipment is drawing and multiplying it by hours of use.

If you are planning to install a battery sometime soon, then size will be related to ensuring there is enough generation power to cover energy use for at least a day and a half.

If you are planning on acquiring an EV in the near future, you may want to add another 2 kilowatts of power generation to the system (an average Australian passenger vehicle uses 8 kWh of energy per day). You should consider your battery storage requirements in this case.

Share watch ? Arafura Resources (ASX:ARU)?

Arafura began life on the ASX in 2003 as an iron ore play but soon changed course once it had acquired the Nolans project in the Northern Territory. It describes Nolans as one of the richest and largest neodymium-praseodymium deposits in the world. Now, it expects Nolans to have a 33-year mine life and produce 4,335t of neodymium-praseodymium per annum.

The company said it is the only operation in Australia to have approval for mining, extraction and separation of rare earths, including handling radioactive waste. Arafura underlines that its rare earths operation will be 100% Australian domiciled.

The ten-year graph reflects high hopes that appear to have fallen away, but global circumstances have radically changed.

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Share watch update

Ecofibre (EOF) has just secured an exclusive distribution agreement with CVS Pharmacy for topical hemp-derived products. CVS Pharmacy is currently the largest pharmacy?chain?in the United States by number of locations (over 9,600 as of 2016) and total prescription revenue.

EOF will initially supply ten products for sale exclusively at select CVS Pharmacy locations. All products will be manufactured in Ecofibre?s new US Headquarters located in Georgetown, Kentucky. The agreement is an ongoing agreement and covers potential future purchase orders. There is no minimum or maximum order volume specified in the contract. The products are expected to be available for purchase in December 2020.

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Financial indicators

The VIX fear gauge up 5.04 points since Tuesday EST to 32.61.

The Dow Jones Industrial Average down since last Tuesday EST by 596.65 points or 2.46% to 23,625.34, the STOXX 600 down 12.99 points or 3.82% to 326.71 and the Shanghai Composite index down 24.46 points or 0.84% to 2,870.34.

Gold up to 1,738.50. US 10-year Treasury Bonds on 0.620 and oil up to 27.66. Cryptos bounced back with Bitcoin up 1,053.49 since Tuesday or 12.25% to 9,652.89.

ASX 200 down 132.50 points or 2.43% from Friday to 5,328.70. The Aussie dollar down slightly to 64.58 US cents.

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Eco Market Spot Prices

LGC $33.00

STC $38.10

ESC $27.15

VEEC $34.15

Sources:?RenewEconomy, demandmanager,? Reuters, SMH, Market Watch, greenglobaltravel

2020-05-19T11:47:53+11:00