Are green ammonia stocks the best to invest in right now? What makes the 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 some great measures that are trying to change the course of 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.
As the world tries to find better energy sources that don’t harm the environment, green ammonia has become quite popular.
However, there’s still this one question that we must answer; are green ammonia stocks worth investing in?
Well, before we get into that, let’s first understand what this market is all about.
Table of Contents
- The Global Green Ammonia Market
- What is Green Ammonia?
- Summary: Best Green Ammonia Stocks
- Top List of Green Ammonia Stocks
- 1. FuelPositive Corp
- 2. AmmPower
- 3. Haldor Topsoe
- 4. Nel ASA
- 5. CF Industries Holdings Inc.
- 6. Ballard Power Systems
- How to Buy Green Ammonia Stocks
- Pros and Cons of Investing in Green Ammonia Stocks
- Is Investing in Green Ammonia Stocks Profitable?
The Global Green Ammonia Market
So many factors indicate that the global market for green ammonia stocks will continue growing at a steady rate. One main factor influencing these stocks’ growth is the increased inclination towards sustainable energy sources and environmental protection.
Increased demand for green energy sources, both for transportation fuel and renewable power generation, has seen the green ammonia market expand rapidly. 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, even with all the positive contributions of green ammonia, one thing remains a challenge – the high cost of setting up a plant. This might be a major hindrance towards more 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 SOEs, are 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 in the future.
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:
- North America,
- The Rest of the World
According to geographical segmentation, Europe is predicted to achieve a greater global market share in the future.
The growth is mainly attributed to the fact that Europe has several green hydrogen projects throughout the region.
What is Green Ammonia?
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.
Generally, ammonia is excreted as waste, especially by aquatic organisms, and it is a major contributor to the terrestrial organisms’ food sources. As you might already know, ammonia is commonly used in fertilizers, which subsequently leads 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 extracted from the air. These two elements are merged under high pressure during the Haber process to manufacture ammonia.
You may note that the global ammonia industry is currently not producing enough green ammonia. This is because most ammonia is produced through a process known as SMR (Steam Methane Reforming). The process produces around 90% CO2.
Summary: Best Green Ammonia Stocks
|Stock||Company||Symbol||Price||Chart (24H)||52 Week Range||Dividend Yield|
NEL ASA UNSPON ADS EACH REP 30
|NEL ASA UNSPON ADS EACH REP 30||NLLSY||$40.50|
CF Industries Holdings, Inc.
|CF Industries Holdings, Inc.||CF||$86.08||1.4402305|
Ballard Power Systems, Inc.
|Ballard Power Systems, Inc.||BLDP||$6.82|
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. This is a Canadian technology company that is putting all its efforts into providing green energy solutions to the world. One of the main clean energy sources that FuelPositive Corp is offering is carbon-free ammonia (green ammonia).
The company’s ammonia is commercially viable, ready for use in various industries and applications. Therefore, if you are thinking of supporting a green cause and making the world cleaner, investing in green ammonia stocks from FuelPositive Corp seems like a great idea.
One thing you should note is that traditional ammonia production ranks among the three most notorious industries in carbon emissions. The others include steel and cement industries.
For this reason, turning to green ammonia would really reduce the number of carbon emissions reaching our atmosphere.
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, as well as 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 that the company has greater growth potential, as global cargo transportation keeps growing.
A major sign that this industry will continue growing in the future 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 certainly 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.
3. Haldor Topsoe
Founded in 1940 by Danish engineer Haldor Fredrick Topsoe, this company has had a great track record over the years. Generally, Haldor Topsoe focuses on carbon reduction technologies aimed at producing carbon-free energy.
These comprise proprietary SOECs (Solid Oxide Electrolyzer Cell), heterogeneous catalyst production, and designing process plants.
The company targets various industries, including heavy sectors (iron, steel, cement, chemicals), long-haul transportation, as well as 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 be disappearing from the market any time soon, Haldor Topsoe is one of them. Anyone looking for green ammonia stocks to invest in, this company should undoubtedly be among your top choices.
4. Nel ASA
Another company with promising green ammonia stocks is Nel ASA. It is a Norwegian company, established in 1998, and which offers solutions for the production, distribution, and storage of green hydrogen.
Recently, Nel ASA entered a contract with Haldor Topsoe, to be supplied with a hydrogen production system meant for its green ammonia production.
The company intends to be supplying 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 quite 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, this is the kind of company you should be looking at.
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 on the globe. Also, the company’s storage facilities and distribution network are unparalleled in North America.
CF industries lead the pack in the production of green ammonia products for green energy, fertilizers, reduction of carbon emissions, and numerous other industrial uses.
Its focus is on safe, reliable, and environmentally-friendly operations that aim at growing 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 high each passing day, investors can anticipate better returns on their investments.
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 motive, material handling, portable power, and engineering services.
Currently, the company has manufactured and sold more than 400 MW of fuel cells, a number that continues to grow by the day.
In 2008, Ballard sought to expand its operations on fuel cell energy, which saw it split into Ballard and AFCC (Automotive Fuel Cell Cooperation). Now, while Ballard focuses on non-automotive products, the latter concentrates on hydrogen fuel cells.
See related: 12 Best Environmental Justice Books
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. The fact is, 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 when it comes to 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 or Robinhood.
All these platforms guarantee you an easy investment process that makes the best use of your money.
See Related: 4 Best ESG Stock Screeners
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.
- Offers prospects of a significantly brighter future for investors
- These stocks are easy to buy and sell
- The industry is just at its budding stages, considering the growing demand for green energy.
- The industry offers a promise for a greener, sustainable world in the future.
- Just 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 rapid growth of the industry.
- The market faces competition from other clean, renewable energy sources like 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 any 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 is capable of producing batteries that are 9 times more powerful than the current lithium-ion batteries used in vehicles. This is just one sector in that ammonia can bring immense change and increase the investors’ returns.
So, if your plan involves investing in green stocks, ammonia green stocks are certainly an excellent choice.
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