Will You Buy Xebec on this Dip?
Kay Ng | February 26, 2021 Will you buy this RNG stock for growth? Xebec Adsorption (TSX:XBC) is a different kind of beast than Northland Power, which provides a regular dividend. Xebec is a more growth-oriented stock. Compare the price action of the two through the graph below that displays the result of an initial investment of $10,000 over the past three years. Xebec provides clean energy solutions for the distributed generation of renewable and low-carbon gases. Its the only company in the world with the technologies to generate both renewable natural gas (RNG) and renewable hydrogen. It has operations in North America, Europe and the Middle East, and Asia. Essentially, its able to convert organic waste, such as cow manure, food waste, and agriculture waste, into RNG thats used as fuel. As the world heads towards net-zero emissions, there will be a continual shift from high-emission fuels, including coal, diesel, and petroleum, to renewable gases. The end goal of renewable gas generation is renewable hydrogen, which will play a key role in achieving net-zero emissions. Right now, Xebec is the leader in this area, as it produces hydrogen at a lower carbon intensity versus other methods available. Governments and natural gas utilities like Fortis are the key market growth drivers. For example, Xebec helped Fortis turn landfill gas into RNG that was injected into Fortiss grid. The addressable market for hydrogen in 2030 is estimated to be $2.5 trillion. This is a huge market to tap for Xebec whose last 12-month revenue is about $64 million with year-over-year growth of more than 50%. Xebec stocks 30% correction from its recent high is a good entry point for growth-seeking investors to start buying shares. The growth runway for Xebec is long, as countries around the world, including the E.U., Canada, South Korea, Spain, Japan, and Germany aim for net-zero emissions by 2050 https://www.fool.ca/2021/02/26/2-clean-energy-stocks-which-will-you-buy-on-this-dip/