This enormous $14 trillion industry has been making headlines throughout the last year, but it could draw even more interest in the days ahead.
That's because governments around the world have been backing climate change efforts with multi-trillion-dollar initiatives…
And investors are pouring piles of cash into sustainable ESG funds, more than doubling investments in the last year.
That’s already brought on historic gains for companies like Ballard Power Systems, which soared 243% in the last year…
FuelCell Energy, which took off 331% …
Or Plug Power, which has jumped 635% during that time.
Now, the mammoth global shipping industry is set to go green with pioneers like AmmPower Corp. (CSE:AMMP; OTC:AMMPF) leading the charge.
It’s been growing steadily in recent years, as we’re now shipping more cargo than ever -- more than 11 billion tons of goods every year.
So while most investors continue to focus their attention on hydrogen fuel-cell plays like the $6.1 billion pre-revenue truck maker, Nikola...
There's a $14 trillion industry set to go green as well.
Hydrogen may simply not be powerful or durable enough to fuel the massive ships that carry billions of tons of cargo worldwide every day.
Fortunately, there's a solution.
And it may come from the 2nd most produced chemical in the world today.
The 100-Year-Old Solution for the Next Generation of Transportation
AmmPower (CSE:AMMP; OTC:AMMPF) is designing revolutionary new technology to help power the next generation of ammonia.
Ammonia is already in high demand today for countless uses like producing fertilizer...
With the chemical being said to hold up to 9x the energy of today’s lithium-ion batteries, it’s the perfect solution for powering massive vessels.
And AmmPower’s technology is expected to produce clean ammonia more efficiently with its modular, scalable, stackable solutions.
The global push to go green in the massive shipping industry is giving AmmPower a rare blue-sky opportunity in the booming ESG trend.
Plus, consider that ammonia can also be used not just for a fuel source on its own. It can also be used to transport hydrogen more safely, easily, and cost-efficiently.
Ammonia's Profit Double-Play
Although major automakers like Toyota, Honda, and Hyundai are all investing massive amounts of cash into their hydrogen fuel cell vehicles, they may soon conclude that hydrogen on its own is just too tricky and expensive to transport.
Hydrogen needs to be stored below a temperature of -253 degrees Celsius, adding a whole other level of costs with expensive equipment and infrastructure to move it from one place to another.
Ammonia, on the other hand, only needs to be kept at -33 degrees Celsius, a difference of more than 200 degrees.
So ammonia (or NH3) can be used to capture, store, and transport hydrogen since it can be broken back down into hydrogen (H2) after being transported.
That's just one reason why ammonia is finally starting to gain tons of attention.
$121 Billion Market Cap Yara International (OSLO: YAR) now plans to install electrolyzers to make 3,500 tons of ammonia per year at its plant in Pilbara, Australia so it can be sold to fuel enormous ships.
Air Products & Chemicals (NASDAQ: APD), a $70 billion market cap Company is spending $2 billion to help ship ammonia around the world to help fuel up to 15,000 hydrogen fuel cell trucks and buses.
Air Product’s CEO, Seifi Ghasemi described the green ammonia opportunity as having the potential to “make mankind’s dream of carbon-free energy a reality”
And $12 billion market cap, CF industries (NYSE: CF), the world's largest ammonia producer, is now calling out what it sees as a fundamental shift to green ammonia, with its recent announcement of its Louisiana manufacturing plant, which will focus on green ammonia focused projects.
The Marine Mandate Changing Everything
For the $14 trillion global shipping industry, green ammonia could transform everything. Some experts predict green ammonia will be used to fuel large marine shipping vessels, significantly reducing carbon emissions in the process.
Ammonia has been called "the fuel of the future" and it could be used to power everything from cars to vans, trucks, forklifts, and even jets.
But recently, the International Marine Organization mandated that the marine industry (which includes cargo ships) must accomplish a goal of zero carbon emissions by 2050.
That sparked the beginning of a massive opportunity that AmmPower (CSE:AMMP; OTC:AMMPF) has taken advantage of by innovating on the latest technology in the industry.
With 120 ports around the world already equipped with ammonia terminals today, we may not have to wait long to see this shift in the industry.
And the pedigree of AmmPower's team has given early investors plenty to be confident in based on their impressive track records.
Star-Studded Team Leading the New Green Industry
AmmPower’s research and development team may have one of the most impressive track records around.
The team is led by CEO Gary Benninger, who cut his teeth leading auto companies worth tens of billions of dollars…
After working as a research scientist at Nasa, he went on to hold leadership positions at $63 billion Ford (NYSE: F) and $29 billion Magna International (NYSE: MGA).
From there, he became the CEO of a tech-based company that was traded on the NASDAQ, and he's now served on three different boards of directors.
With the track record of AmmPower's science and advisory team behind them, it’s clear that they have what it takes to become a clear leader in this new, fast-moving industry.
That's why they're plowing ahead as they look to secure a state-of-the-art manufacturing facility in Michigan.
But as it’s still in the early days of this transportation revolution, AmmPower (and the green ammonia space in general) is relatively unknown, but this can only go on for so long… The opportunity in ammonia is simply massive, but there’s very few micro and small cap companies in the space…
Take CF industries (the largest ammonia producer in the world), for example, trading at a huge market cap of $11.7 billion.
Or ammonia behemoth, Air Products & Chemicals, which is even larger, boasting a giant market cap of $68 billion.
Or even, chemical giant Yara International trading on the Oslo Stock Exchange, which eclipses both of them combined with a market cap of $116 billion.
Compare those names to AmmPower Corp. (CSE:AMMP; OTC:AMMPF) though, and it's clear that the upside is unmatched in this new space, with this up-and-comer currently worth a modest $120 million market cap.
That makes these competitors more than 200x the size of Ammpower currently, with few micro-cap or small cap competitors to speak of…
And as the $14 trillion shipping industry makes its push toward going green, AmmPower is primed to profit as it further develops its groundbreaking new technology. This secret won’t be kept for very long.
Other companies to watch in the alternative energy boom:
Another great way to get some exposure to the alternative fuel vehicle boom is through stocks like AutoCanada (TSX:ACQ). It is a company that operates auto-dealerships through Canada. The company carries a wide variety of new and used vehicles and has all types of financing options available to fit the needs of any consumer. While sales have slumped this year due to the COVID-19 pandemic, AutoCanada is already seeing a rebound as both buying power and the demand for electric vehicles increases. This runup could even be accelerated as exciting new cars like Ford’s hybrid fuel cell electric vehicle or Toyota’s new line of EVs hit the market.
Year. To date, AutoCanada’s stock price has more than doubled. And this is only the beginning. The economy is finally beginning to recover, more cars are on the road, and people are increasingly looking for cleaner alternatives to their dirty ICE vehicles.
GreenPower Motor Company (TSX:GPV) is an emerging company that produces mass electric transportation. At the moment, it is primarily focused on the North American market, but the sky is the limit as the pressure to go green grows. GreenPower has been on the frontlines of the electric movement, manufacturing affordable battery-electric busses and trucks for over ten years. From school busses to long-distance public transit, GreenPower’s impact on the sector can’t be ignored.
GreenPower Motor has seen its share price fall significantly from its January highs, but that doesn’t mean investors shouldn’t keep an eye on it. It is a strong company with ambitious goals, and one of the few Canadian automakers making significant moves in the space.
NFI Group (TSX:NFI) is another one of Canada’s emerging companies in the electric vehicle space. Not only does it produce transit buses, but it also producers motorcycles. NFI had a difficult start to the year, but it since cut its debt and begun to address its cash flow struggles in a meaningful way. Though it remains down from January highs, NFI offers investors a promising opportunity to get in on the inevitable transition to electric vehicles.
In addition to its increasingly positive financial reports, it is also one of the few in the business that actually pay dividends out to its investors. That’s huge news for investors who would like to take a wait and see approach while still cashing out some dividends in the meantime.
Maxar Technologies (TSX:MAXR) is a high flying space stock to watch in the energy transition. While space firm specializes in satellite and communication technologies, it is also a manufacturer of infrastructure required for in-orbit satellite services, Earth observation and more. More importantly, however, Maxar’s subsidiary, SSL, a designer and manufacturer of satellites used by government and commercial enterprises, has pioneered research in electric propulsion systems, lithium-ion power systems and the use of advanced composites on commercial satellites. These innovations are key because they allow satellites to spend more time in orbit, reducing costs and increasing efficiency. And it’s greener than traditional power sources.
Maxar’s year has been a bit of a mixed bag. It’s jumped up and down and then saw a semi-sustained low point that it’s finally starting to recover from. But it does have potential. It’s one of the few relatively proven ways to get exposure to the booming space industry – and it makes batteries. What’s not to love?
Magna International (TSX:MG) is a really interesting and roundabout way to get in on the explosive commodity market without betting big on one of the new hot stocks tearing up among the millennials right now. More than a decade ago, Magna International was already making major moves in the battery market, investing over half a billion dollars in battery production while the market was still in its infancy. At the time, electric vehicles as we know them had barely hit the scene, with Tesla launching its premiere car just two years prior.
Magna’s massive investment in batteries, however, has paid off in a big way. It’s already climbed over 40% this year, with its share price rising from $69 in early January to today’s price of near-$100.
By: Francis Rank
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