![]() Software provides monthly recurring revenue and cash flow to STEM with an 80% gross margin. The Software segment is a recurring SaaS model with a 100% attach rate secured by 10-20-year contracts. Hardware & Network Integration will provide customers a turnkey solution for energy storage and provide STEM with 10-30% gross margins. Once the merger is complete, the combined company will have three business segments, which include Hardware & Network Integration, Software, and Market Participation. Investor Deck) Star Peak Energy Transition Corp growth projections are off the charts and could be conservative depending on the amount of renewable infrastructure added over the next 5 years Between the future energy trends, corporate pledges, an evolving energy grid and future infrastructure spending in green energy projects, I think the future is very bright for STPK, which will trade under the symbol STEM once the merger is complete. STEM is projecting that its $33 million in revenue for 2020 will increase by 345.45% to $147 million in 2021 and over the next five years by 2,760.61% to $944 million. ![]() STEM sees the storage market as a 25x growth opportunity as the total addressable market will reach $1.2 trillion. STEM currently has partnerships with large-scale utilities which include Dominion Energy ( D ) and Duke Energy ( DUK ) and many of the largest companies in the U.S., including WMT, AMZN and Apple ( AAPL ). Many Fortune 500 companies, including Walmart ( WMT ) and Amazon ( AMZN ) have pledged to operate on 100% renewable energy and reduce their footprint to net zero carbon. The EIA is projecting that by 2050 the energy consumption of renewables will more than double and renewables will account for 42% of electricity generation. Energy Information Administration just released their Annual Energy Outlook for 2021, which forecasts out to 2050. STEM has built the Athena platform, which is a smart solution based on Artificial Intelligence and Machine Learning, which can reduce energy costs, carbon emissions and provide greater reliability for the grid. STEM delivers and operates smart battery storage solutions for commercial customers, independent power producers and power utilities. To stabilize the grid, more battery storage will be needed as production of wind and solar increases. The electrical grid is evolving as more renewable energy such as wind and solar are implemented. ![]() in early 2021 and the new symbol will be STEM. STPK is a SPAC which is merging with STEM Inc. One of the common themes I have found is the exponential growth renewables are expected to achieve over the next two decades. Over the years, I have conducted a tremendous amount of research for the articles I have written on traditional energy companies. Star Peak Energy Transition Corp ( STPK) is my first investment into the green energy space. While many will disagree on the percentage of disruption renewables will achieve by 2040, I think it's safe to say that the global energy mix is evolving and renewables will experience significant growth. Solar companies have seen tremendous growth over the past year and I don’t see the renewable space slowing down. Many have asked in the comments which green energy companies would I invest in as the data shows a dramatic increase in renewable energy generation through 2040. One of my reoccurring themes is how the global energy mix will evolve over the next two decades. I have written many articles on MLPs and Big Oil Supermajors on Seeking Alpha.
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