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This week we have a cash shell on the podcast for the first time. This is newly listed Net Zero Infrastructure, which has just listed on the London Stock Exchange. It joins the small coterie of clean cash shells – or SPACs in American parlance – currently trading on the exchange. We are joined by the new company’s chairman, Mike Ellwood.

For those not familiar with them, cash shells represent a means for existing private companies to move onto the stock exchange without the need for the often protracted and expensive process of an IPO. A SPAC will typically define the sector it is looking to make acquisitions in, but not the specific companies.

In the case of Net Zero Infrastructure, the company is looking to acquire one or more private companies that are currently active in the renewable energy infrastructure market. This could be in areas like battery storage, hydrogen fuel and carbon capture.

Among the areas the directors will be looking at are energy parks and hubs. Following the closure of fossil fuel burning power stations it may be possible to build new energy generation projects in their place, taking advantage of a previous power station’s connectivity to the National Grid. There may be an opportunity here to acquire former power stations and industrial plants, decommission them, and then repurpose the sites to provide companies with access to the supply network, or to develop clean and renewable energy projects, either alone or in partnership with others.

Net Zero Infrastructure has been set up to provide capital to companies in this sector. These are potential assets that the team behind Net Zero Infrastructure believe will offer investors long term and stable cash flows.

This is an exciting and fast growing market which we at The Armchair Trader believe will be very important for the UK’s future energy needs. At a time when the UK is already struggling with its energy supplies, Net Zero Infrastructure’s launch highlights the need for capital to help this sector to grow more quickly.

Net Zero Infrastructure On the Podcast

On the podcast we speak to Mike Ellwood about the sorts of companies the cash shell is looking to target. These are opportunities that are run by management with a strong track record of generating growth for shareholders and a proven experienced business record.

Net Zero Infrastructure is looking for potential acquisitions that have solid commercial prospects within the clean and renewable energy sectors. They need to have a compelling case for providing the foundation or platform for a scalable business which generates substantial and sustainable free cash flow over time.

It is difficult to go into specifics with a cash shell, but the background here is a compelling one. In 2019 the UK became the first major economy in the world to pass laws to end its contribution to global warming by 2050. On 20 April this year the government announced it would target the reduction of national emissions by 78% by 2035.

The UK’s Climate Change Committee has said that at least £50bn will need to be invested in the sector every year if the country is going to achieve these objectives.

Listen: Podcast with Mike Ellwood, Chairman of Net Zero Infrastructure

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Stuart Fieldhouse

Stuart Fieldhouse

Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.

Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.

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