Are green ammonia stocks the best to invest in right now? What makes them unique? This article gives you a comprehensive look at the industry, giving you some of the best stocks to invest in here.
The world is continually changing every day. People are now more aware of how their actions and decisions affect the planet, thus trying to find better ways to do things. Think of climate change, global warming, water pollution, and deforestation; it’s all about human actions.
However, sustainable living and environmental conservation are great measures that are trying to change things. And that’s not all! Investors are now finding new ways to invest in things that matter – impact investing.
Today, we look at one investment route that environmentally conscious investors are taking – the green ammonia stocks market. Green ammonia has become quite popular as the world tries to find better energy sources that don’t harm the environment.
However, we still must answer one question: Are green ammonia stocks worth investing in?
Summary: Best Green Ammonia Stocks
| Stock | Company | Symbol | Price | Chart (24H) | 52 Week Range | Dividend Yield |
|---|---|---|---|---|---|---|
 FUELPOSITIVE CORP. NHHHF | FUELPOSITIVE CORP. | NHHHF | $0.05 | 0.00% | ||
 AmmPower Corp. AMMPF | AmmPower Corp. | AMMPF | $0.0194 | 0.00% | ||
Nel ASA NLLSY | Nel ASA | NLLSY | $7.20 | 0.00% | ||
 CF Industries Holdings, Inc. CF | CF Industries Holdings, Inc. | CF | $95.19 | 2.17% | ||
 Ballard Power Systems, Inc. BLDP | Ballard Power Systems, Inc. | BLDP | $1.70 | 0.00% |
Top List of Green Ammonia Stocks
Now that we know what green ammonia is and how it works to better our planet, what are the best green ammonia stocks to invest in? Which companies guarantee better returns for people looking to invest in the green ammonia industry?
Here are our top picks:
1. FuelPositive Corp
First on our list is FuelPositive Corp., a Canadian technology company putting all its efforts into providing global green energy solutions. One of the main clean energy sources FuelPositive Corp offers is carbon-free ammonia (green ammonia).
The company’s ammonia is commercially viable and ready for use in various industries and applications. Therefore, if you want to support a green cause and make the world cleaner, investing in green ammonia stocks from FuelPositive Corp seems like a great idea.
You should note that traditional ammonia production ranks among the three most notorious industries in carbon emissions. The others include the steel and cement industries. For this reason, turning to green ammonia would reduce carbon emissions that reach our atmosphere.
2. AmmPower
AmmPower is a global leader in green energy production. Its two main areas of specialization are ammonia production and lithium exploration.
Located in Vancouver, BC, the company offers an excellent mix of research, exploration, discovery, engineering, product design, and development of clean energy solutions for a sustainable future.
Generally, AmmPower targets three key global industries: rail, marine, and other large-volume cargo transportation sectors. Handling such enormous sectors only means the company has greater growth potential as global cargo transportation keeps growing.
A major sign that this industry will continue growing is the construction of scalable ammonia facilities in over 120 marine transshipment ports across the globe.
This shows great anticipation for an even larger market and usage of green ammonia in the future. Subsequently, the company’s green ammonia stocks will fetch even more money for its investors.
Massive projects like the Porto Central, a deep-water industrial port complex for green ammonia production, are also a plus for the company and its investors. More such big projects will undoubtedly lead to more money for investors.
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3. Haldor Topsoe
Established in 1940 by Danish engineer Haldor Fredrick Topsoe, this company has had a great track record. Generally, Haldor Topsoe focuses on carbon reduction technologies to produce carbon-free energy.
These comprise proprietary SOECs (Solid Oxide Electrolyzer Cells), heterogeneous catalyst production, and designing process plants.
The company targets various industries, including heavy sectors (iron, steel, cement, chemicals), long-haul transportation, and clean fuels (low-sulfur diesel and biodiesel). It ranks among the leading global companies when it comes to heterogeneous catalysis. Also, its technology is responsible for over 50% of all the ammonia fertilizer produced globally.
Therefore, if you are looking for a company that won’t disappear from the market soon, Haldor Topsoe is one of them. This company should undoubtedly be among your top choices for anyone looking for green ammonia stocks to invest in.
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4. Nel ASA
Another promising green ammonia stock is Nel ASA. Established in 1998, it is a Norwegian company that offers solutions for the production, distribution, and storage of green hydrogen.
Recently, Nel ASA entered a contract with Haldor Topsoe to supply it with a hydrogen production system for its green ammonia production. The company intends to supply green ammonia to its customers based on the anticipated increased demand for green energy.
The fact is that the green ammonia market is continually growing due to increased demand for clean sources of energy. And this isn’t a trend that is ending soon. Therefore, with the company making major strides to clinch its place in this market, the odds look bright for future investors.
Thanks to almost nine decades of exceptional research and development in energy-efficient technologies, the company has become a global leader in the industry.
So, if you want to invest in some of the best green hydrogen stocks in the market, you should consider this company.
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5. CF Industries Holdings Inc.
CF Industries is another global leader in the green ammonia production industry. With manufacturing plants based in the US, Canada, and the UK, CF Industries’ mission is to offer clean energy to the world for a sustainable future.
Its manufacturing plants are some of the most cost-friendly, efficient, and flexible globally. Also, the company’s storage facilities and distribution network are unparalleled in North America.
CF industries produce green ammonia products for green energy and fertilizers, reducing carbon emissions and numerous other industrial uses.
Its focus is on safe, reliable, and environmentally friendly operations that aim to grow one of the most advantaged green ammonia platforms to serve global customers and create long-term investor value.
With the demand for green, renewable energy sources soaring each passing day, investors can anticipate better returns on their investments.
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6. Ballard Power Systems
This company offers an incredible opportunity to invest in green ammonia stocks. Founded in 1979, Ballard Power Systems is famous for its PEM (proton exchange membrane) fuel cell products. These fuel cell products are used in various markets, including heavy-duty motors, material handling, portable power, and engineering services.
Currently, the company has manufactured and sold more than 400 MW of fuel cells, and this number continues to grow daily.
In 2008, Ballard sought to expand its operations on fuel cell energy, which saw it split into Ballard and AFCC (Automotive Fuel Cell Cooperation). While Ballard focuses on non-automotive products, the latter concentrates on hydrogen fuel cells.
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What is Green Ammonia?
Ammonia is a chemical compound commonly used to produce fertilizers, cleaning products, and refrigerants. Firstly, ammonia is a nitrogen and hydrogen compound (NH3). It is a colorless gas, but you’ll always notice it through its distinctive pungent smell. Some companies producing and distributing ammonia include Yara International, CF Industries, and Nutrien.
Generally, ammonia is excreted as waste, especially by aquatic organisms, which is a major contributor to terrestrial organisms’ food sources. As you might already know, ammonia is commonly used in fertilizers, leading to more global food production.
Now, to green ammonia. This refers to ammonia, produced through a 100% carbon-free, renewable process. One way to achieve this is through the Haber process, which combines liquid hydrogen elements from water with nitrogen from the air. These elements are merged under high pressure during the Haber process to manufacture ammonia.
You may note that the global ammonia industry is not producing enough green ammonia. This is because most ammonia is produced through a process known as SMR (Steam Methane Reforming), which produces around 90% CO2.
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About the Global Green Ammonia Market
So many factors indicate that the global market for green ammonia stocks will continue growing steadily. The increased inclination towards sustainable energy sources and environmental protection is the main factor influencing these stocks’ growth.
Increased demand for green energy sources for transportation fuel and renewable power generation has rapidly expanded the green ammonia market. Companies and individuals have seen the need to maintain a safe environment free from harmful elements like greenhouse gases in the air or spilled petroleum on our waterways.
However, despite all the positive contributions of green ammonia, one challenge remains—the high cost of setting up a plant. This might be a major hindrance to the growth of this market.
The global market for green ammonia is generally divided based on application, technology, or Geographical location. For instance, when considering technology, the market can be segmented into:
- Proton Exchange Membrane (PEM)
- Alkaline Water Electrolysis (AWE)
- Solid Oxide Electrolysis (SOE)
Solid Oxide Electrolysis, or SOE, is most useful in fuel production, chemical analysis, and CO2 recycling. This means that SOEs may achieve a higher growth rate than others in this category. When we look at the market in terms of application, it can be classified as follows:
- Power generation and storage
- Transport fuel
- Fertilizers, etc.
Geographically, the market includes:
- Asia-Pacific,
- Europe,
- North America,
- The Rest of the World
According to geographical segmentation, Europe will achieve a greater global market share. The growth is mainly attributed to Europe’s several green hydrogen projects throughout the region.
Who is the biggest producer of ammonia?
The biggest producer of ammonia is China. China’s ammonia production has surpassed that of other leading producers, such as Russia and India, in recent years. The country’s ammonia production is driven by its large agricultural sector, which consumes ammonia-based fertilizers to boost crop yields.
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How to Buy Green Ammonia Stocks
If your question was about how to invest in green ammonia stocks, then you are in the right place. Investing in ammonia stocks is not any different from investing in climate change stocks or ESG stocks. All you have to know is where to buy the stocks and how to go about it.
Firstly, there are several options for purchasing green ammonia stocks. You can use a stock brokerage account, full-service stockbrokers, or a robo-advisor.
Opening a stock brokerage account is easy, while robo-advisors make the process even easier. Some of the best brokerage platforms include Ameritrade, Fidelity, and Robinhood. On the other hand, you can use robo-advisors such as M1 Finance, Wealthfront, Betterment, and Empower.
All these platforms guarantee an easy investment process that makes the best use of your money.
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Pros and Cons of Investing in Green Ammonia Stocks
Every industry has its upsides and downsides; here is what you should know about the green ammonia industry.
Pros
- Offers prospects of a significantly brighter future for investors
- These stocks are easy to buy and sell
- Considering the growing demand for green energy, the industry is just at its budding stages.
- The industry promises a greener, sustainable world in the future.
Cons
- Like other markets, the green ammonia market is prone to price fluctuations that may not favor the investor.
- The cost of producing green ammonia is substantial, which may hinder the industry’s rapid growth.
- The market faces competition from other clean, renewable energy sources, such as wind and solar, which might be a bit cheaper to produce.
Is Investing in Green Ammonia Stocks Profitable?
The green ammonia industry is a lucrative one, without a doubt. As the world tries to find all possible ways to reduce carbon emissions and move away from fossil fuels, green ammonia offers an excellent alternative—the fuel of the future.
For this reason, the industry is rapidly growing, and its future looks even more promising. For instance, ammonia can produce nine times more powerful batteries than the current lithium-ion batteries used in vehicles. This is one sector where ammonia can bring immense change and increase investors’ returns.
So, if your plan involves investing in green stocks, ammonia green stocks are an excellent choice.
FAQs
Is ammonia a good investment?
Ammonia, with the chemical formula NH3, is a compound of nitrogen and hydrogen atoms. It is primarily used in the production of fertilizers, but it also has a variety of other industrial applications, such as refrigeration and as a cleaning agent.
Ammonia can be volatile as an investment due to fluctuations in demand and production costs, so it is important to carefully consider market trends and potential risks before making any investment decisions.
What company makes ammonia fuel?
Ammonia fuel is a type of fuel made from ammonia that can be used in internal combustion engines and fuel cells. While several companies are researching and developing ammonia fuel, one notable company that is actively producing and promoting its use is the Japanese chemical company Mitsubishi Chemical. They have developed a process for producing ammonia fuel from renewable sources and are working to commercialize its use in transportation and power generation.
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