- the emergence of China as a global economic leader
- the development of renewable energy as a new investment category
America-China Energy Trust is at the nexus of these two trends. It is a new investment vehicle, designed for the private and institutional investor in the U.S., China and worldwide. The Trust will enable investors to participate in transparent, professionally-managed, high-quality renewable energy companies in China, the United States and around the world. Industry-standard management, technology, business planning, marketing channels and accounting will enable acceleration of the new green energy economy in China.
Photovoltaics, solar thermal, wind, geothermal, biomass, conservation, recycling, clean coal, fuel enhancement and processing, innovative lighting and cooling, storage technologies including battery, mechanical and other — these industries are showing accelerating growth rates, ever-increasing capital investment, strong revenues and profitability.
Several candidate portfolio companies have been identified by the Trust, including high-capacity batteries for electric vehicles and smart grid deployment, thin-film photovoltaic solar, small fuel-efficiency enhancement devices, recovery of hydrocarbons from plastics, embedded solar networks and innovative financial services to facilitate implementation. Some of the portfolio companies are large, well-established and profitable; others are small technology startups; others are on the curve between these two extremes. Together, they provide a diversified field of investment opportunities under a single investment umbrella with a common reporting structure, and a current-income and long-term capital appreciation profile.
The Central Government of China is developing a master plan for existing and new energy technologies, scaled across geographies and phased through the next 50 years. Its goals are:
- to provide reliable power for China’s growing industries
- to make power sources increasingly diverse and under domestic control
- to reduce negative environmental impacts
- to gradually replace legacy fuels with new sources.
America-China Energy Trust is preparing to work with the policy-makers who are developing this strategy, and will orient its investment priorities with the government plan, consistent with sound investment principles.
Technologies optimized and engineered for scale in China will help build the new green energy economy in America and the rest of the world. The Trust will create high-value, stable employment in the green energy sector in both China and internationally. These new professions will move workers trained in older industrial jobs up the income scale, and will improve overall economic stability and diversity.
The first round of private capital formation is $15 million, followed by a second private round of $500 million. Opening-round advisors include Woodlake Group, Arthur Lipper and Charles Gay.
America-China Energy Trust will contribute 10% of its net revenues to the Zhou Enlai Peace Institute, as our contribution to building understanding and respect between two great nations. See http://www.zhouenlaipeaceinstitute.org
Principals of America China Energy Trust include Michael North (executive, investment analyst), Charles Gay (renewable energy expert), Xiao Fang Zhou (China government relationships), Mary Buffett (financial advisor), Michael Little (financial analyst), Roger Epstein (legal), Arthur Lipper (institutional participation) and Sam Seraphim of Woodlake Group.