On Thursday, the U.S. House of Representatives approved a $715 billion transportation and water infrastructure bill. By itself, that doesn’t mean much.
Things are still jammed up in the U.S. Senate.
But it is another step toward putting that bill and a much more sweeping $2.3 trillion infrastructure package — covering everything from roads and bridges to electric vehicle charging stations and power grid improvements — on the president’s desk by this fall.
Infrastructure saves time … and time is money. That’s why infrastructure advancements always produce wealth-creating opportunities.
President Abraham Lincoln signed the Pacific Railway Act of 1862, which authorized construction of a rail line westward from Omaha to the Pacific Coast.
This law lavished bountiful subsidies on the winning bidders, granting one square mile of public domain land on alternating sides of the railway along the entire route. The act also provided tens of millions of dollars of upfront financing.
The laying of 2,000 miles of railroad track took nearly seven years. But once complete in 1869, the new railroad reduced transcontinental travel time from several months to just one week.
The railroads and other ambitious transcontinental infrastructure achievements like it — such as the national telephone and highway systems — did not simply enable individuals and businesses to conduct the same tasks more quickly. They enabled them to devise entirely new businesses and ways of life.
That’s American ingenuity and progress worth noting as we celebrated Independence Day over this past weekend.
The railroads, for example, enabled businesses like the Campbell Soup Co. (NYSE:CPB) to establish nationwide franchises. The soup company was able to transport produce by rail from the Midwest to canning facilities in Trenton, NJ. From there, the company rolled out boxcars full of tomato and cream of celery soup across the country.
Each major infrastructure enhancement transformed commerce, opening the door to completely new modes of commerce. At every step of the way, forward-looking entrepreneurs and investors made millions.
So today, let’s look at one company perfectly poised to benefit from the $2.3 trillion infrastructure proposal now inching its way through Washington.
The Key to Fixing America’s Crumbling Infrastructure
As well as our nation’s infrastructure has served us over the decades, it now needs a multitrillion-dollar upgrade … an upgrade that is critical to our national security.
Crumbling roads, bridges and dams are a threat to both American lives and economic security.
If we can’t safely and efficiently transport food, fuel, goods and people, then we are by definition a weak and vulnerable nation.
If you think of our roads and bridges as the U.S. economy’s circulatory system, it’s like we have the blood vessels of a grossly overweight 85-year-old smoker.
Our crumbling infrastructure is not only dangerous, but it is a huge economic drag, a heavy weight around the neck of American commerce. It is the foundation of economic mediocrity … not the foundation of prosperity.
If we Americans want to continue to achieve great success in the future, we must fix this situation.
The American Society of Civil Engineers estimates that the United States needs to invest more than $4.5 trillion by 2025 to bring its infrastructure to an adequate B- grade.
That’s a fortune.
But now that both Democrats and Republicans are looking for ways to invest in America and re-create jobs that vanished during the Covid-19 panic, one of the largest infrastructure programs in U.S. history is now making its way through Congress.
Their ambitious legislation proposes committing $2.3 trillion to long-term infrastructure projects.
These enormous spending programs would allow us to massively upgrade our weak infrastructure… and provide us with the robust “circulatory system” we need to maintain our economic competitiveness.
Any time trillions of dollars flow into a sector, there are huge profit opportunities for entrepreneurs and their investors.
A variety of companies and industries will benefit from this large-scale investment in U.S. infrastructure.
Here’s one example…
Energy Storage Will Supercharge This Firm’s Shares
That $2.3 trillion infrastructure plan doesn’t just fix roads and bridges. It would also jump-start the renewable energy industry by delivering $15 billion for clean energy research and development.
That includes carbon capture and storage, hydrogen, floating offshore wind, biofuel/bioproducts, electric vehicles … and utility-scale energy storage.
Without batteries, the renewable power industry has never been able to optimize its power-generation capabilities. But that moment has finally arrived.
Economically viable batteries, also known as “energy storage,” are unleashing the full potential of renewable energy technologies like solar and wind.
But not just any batteries will do. For the renewable energy industry to flourish, it needs “long-duration energy storage” batteries that can deliver power when needed.
Because this unique battery technology can store energy for six to 10 hours, it enables electric utilities to “save” the excess power a solar installation might produce when the sun is shining… and then deliver that power to customers during night-time hours. The same goes for wind-generation facilities.
Without long-duration energy storage, the excess power a solar or wind facility produces simply goes to waste. Therefore, storing that energy for later delivery can enhance the efficiency and profitability of renewable energy installations.
This fact isn’t a secret, of course. But economically viable energy storage did not exist until very recently … and the folks at a company I recently recommended to members of my Fry’s Investment Report letter have been presenting a compelling case that the best long-duration energy storage technology is a rechargeable “flow” battery, like the ones the company will soon be producing.
Thus far, however, short-duration lithium-ion technology has captured a dominant share of the energy storage market. That’s probably because these batteries also dominate the EV and smartphone markets.
To be sure, lithium-ion batteries possess superior energy density, relative to “flow” batteries. That’s why lithium-ion batteries are the go-to for uses where both size and weight matter, like in smartphones and EVs.
But since most power generation facilities have ample real estate to install large-scale systems, size and weight rarely figure into the energy storage calculation. For the utility-scale market, rechargeable “flow” batteries possess significant advantages over lithium-ion batteries.
To learn more about this company — and its “flow” batteries — as a member of the Investment Report, click here.
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NOTE: On the date of publication, Eric Fry did not own either directly or indirectly any positions in the securities mentioned in this article.
Eric Fry is an award-winning stock picker with numerous “10-bagger” calls —in good markets AND bad. How? By finding potent global megatrends… before they take off. In fact, Eric has recommended 41 different 1,000%+ stock market winners in his career. Plus, he beat 650 of the world’s most famous investors (including Bill Ackman and David Einhorn) in a contest. And today he’s revealing his next potential 1,000% winner for free, right here.