Prash Odhavji
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Financing the energy transition by reducing the cost of capital
A few months ago I posted about the cost of capital (“CoC”) disparity between developed and emerging markets, and why it remains a vital component of accelerating decarbonisation. But what would happen if the CoC in emerging markets reached parity with developed markets? The barriers to emerging market financing is well known. But a recent…
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The Strategic Bitcoin Reserve – Ignore the Noise
“The EO strategic reserve is singularly the most attributable, political, public facing entity that no sensible politician will risk their career on a move that could backfire spectacularly when it comes to actual action, not just words. Just take a minute and think about it, and recognize that this is just pure political survival instinct.…
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Strong Opinions, Loosely Held: Liquidity and Markets
Most of my public posts to date have centred around climate finance and the energy transition. But few also know, I have been an avid investor for ~15 years. Like many, my journey began with value investing. The Intelligent Investor, Little Book of Common Sense, One Up on Wall Street, A Random Walk Down Wall…
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Japan’s auto titans might merge: secular upheaval
Three of Japan’s largest automotive manufacturers, Honda, Nissan, and Mitsubishi, are thinking of merging. Once titans of their industry, these manufacturers risk falling into obscurity if they can not innovate and pivot. Ironically, it was the same cohort decades prior, that dominated much of road transport by introducing lower cost, high quality vehicles – the…
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Nuclear, yes. In Australia, no mate.
I have a strong preference to look at more long-term macro trends because I see shorter-term current affairs as distractive, typically. But what’s life without making a few exceptions. For much of 2024, there has been a growing chorus of individuals calling for nuclear power in Australia. I have no issue with nuclear, it makes…
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Climate finance – only for the good times?
A few thoughts on why I think climate finance flows will remain resilient, across the capital structure, over the short and longer-term. That trend will be non-linear but head up and to the right because climate finance provides tangible benefits that not only create positive environmental outcomes but that also promote sovereignty, productivity, resilience, and…
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Biofuels (Part 3)
Fan demand with strong policy Originally posted June, 2024 Future demand for sustainable aviation fuel is highly uncertain given its dependancy on (among other things) national emissions plans, supportive policy, and technological development. By 2050, IRENA estimates demand of >100 billion litres each year to achieve a 50% emissions reduction, 200 billion litres for an…
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Biofuels (Part 2)
The production cost of cleaner fuel in aviation Originally posted June, 2024 It’s a volume game. Planes and ships are designed to transport large volumes over long distances. Not a cheap business to run. That means, you want to prioritise as much cargo as possible and minimise the space needed for fuel. To do that…
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Biofuels (Part 1)
Assymetric opportunities in aviation, the case for bio[few]ls Originally posted June, 2024 6 years to achieve a 100x increase. Opportunity: We often talk about the daunting challenges of the energy transition but there is scant mention of the asymmetric opportunities it also presents. In aviation for instance, <0.1% of aviation fuel demand was derived from…
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Approaching impact with perspective
Originally posted November 21, 2023 How do we ensure impact outcomes create positive systemic change whilst generating alpha? Does a growing market translate to more influence and better results? How can we deploy capital responsibly and effectively? At face value these questions appear complex, but our approach does not have to be. The 1992 Earth…
Euthymia 