If you’re looking for a “winning” segment of the energy sector over the last year and heading into the future, it’s time to look at clean energy stocks.
While the majority of the energy sector has been up-and-down on the whims of crude prices, geopolitical tensions, and regulatory upheavals, plays in clean energy production and processing have quietly been gaining in attention and market share. Undoubtedly the leader so far? Clean natural gas.
The investment proposition is relatively simple: climate change concerns and demands for cleaner energy aren’t going away anytime soon, but neither is the built-in global demand for gas. If you can provide cleaner gas or alternatives, you’re looking at a blue-sky upside that would make heads spin. Silicon Valley experts are even expecting that the
next wave of tech billionaires will make their money from climate change solutions.
In fact, the majority of “green energy” companies that have been attracting strong followings aren’t gas producers themselves, but are instead Industrials companies that produce products and technology for the energy sector. They’ve quietly gone from an investment pipedream and afterthought to regulars on the weekly top-viewed Industrials Bullboards on Stockhouse.
Companies have been cognisant of the increasing sentiment towards clean energy investments and have been positioning themselves as such. Winners of the shifting market include
Xebec Adsorption Inc. (
TSX-V:XBC), which develops products that transform raw gases into cleaner sources of energy, and
Greenlane Renewables Inc. (
TSX-V:GRN), a biogas upgrading systems maker looking to decarbonize natural gas sources.
Some of these “green energy” companies operate in the
increasingly-hyped hydrogen market, which includes the largest automakers trying to secure the future of transportation in fuel cells and not electric vehicles. These include fuel cell producer
Ballard Power Systems Inc. (
TSX:BLDP) and hydrogen generator developer
DynaCERT Inc. (
TSX-V:DYA).
One of the few “green energy” companies acting as a full-fledged producer is
Clean Energy Fuels Corp. (
NASDAQ:CLNE), which owns liquefaction facilities and has a network of 540 stations in North America for compressed natural gas, liquefied natural gas, and renewable natural gas vehicle fuel. And expanding past green natural gas would highlight companies like
Exro Technologies Inc. (
CSE:XRO) that is positioned in clean energy through advanced electric motors and generators with greater efficiencies and market uses.
Investors looking to enter the clean energy market have a variety of options to choose from, but the fundamentals seem to be consistent across the board: Whether you like it or not, energy use and demand is increasing, but so is the demand for more efficient and less harmful sources of fuel. Both factors weigh in favor of clean energy stocks.
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