In this article, we look at some of the expected highlights of the next energy revolution. You can skip our detailed discussion of the energy market and go directly to 5 emerging energy technologies in which you can invest today.
Innovation in energy has changed the way companies offer sustainable products and services. These innovative energy segments include concentrated solar energy, carbon storage, nuclear fusion, smart electricity networks, hydrogen technologies, energy storage, innovative heat pumps, energy efficiency, and so on. This may sound confusing and niche, but in this article you will find clear explanations that will help you catch up with the progress of energy technology. We also list the most innovative energy companies and related stocks you can consider for investments.
Energy remains one of the largest investment areas worldwide. As the world moves away from fossil fuels, so does the market for renewable energy. Data show that the renewable energy market is expected to appreciate $ 1,512.3 billion by 2025, with a CAGR of 6.1% from 2018 to 2025. In 2019, the US energy research and development budget is estimated at $ 8 billion. In addition, the US made up 33% of the total R & D budget among the members of the Internal Energy Agency (IEA). The Biden administration’s pursuit of innovation in the energy markets will foster the transformation to renewable energy worldwide.
Although some companies have had to cut their research budgets due to the pandemic, it is widely believed that the energy sector will experience a major leap in the near future.
Let’s start our list of ten emerging energy technologies you can invest in today.
10. Hydrogen technologies
Some call it the new oil, others call it the blue energy. As the number of research and green projects around the world skyrockets, hydrogen energy will change the world by giving a variety of sectors carbon. This clean energy carrier can be produced from any energy source such as coal, gas and by-products, except renewable sources. Hydrogen generation from renewable sources is based on electrolysis, it is the process of using electricity to divide water into hydrogen and oxygen.
However, hydrogen production from conventional resources causes greenhouse gases, which is the main reason for climate change. Fortunately, advances in CO2 capture have eased some of the concerns about conventional hydrogen production.
Nevertheless, there are some disadvantages that need to be addressed. Hydrogen energy faces challenges in terms of supply logistics and scaling up production. In addition, production from renewable sources is still expensive.
In terms of hydrogen energy, cost is the most important issue for businesses. Hydrogen production costs 3 – 7.5 USD / kg from renewable sources, while 0.9 – 3.2 USD / kg from natural gas, according to the IEA hydrogen report 2018. Fortunately, the cost of producing hydrogen from renewable electricity is falling. According to IRENA, the cost of producing hydrogen from renewable energy is expected to be 0.9-1.2 USD / kg of wind and 1.1 – 2.5 USD / kg of solar by 2050. US, Saudi Arabia, Australia plan to use solar energy to produce hydrogen in addition to hydropower for Norway.
The demand for hydrogen is increasing in the industry. Demand rose significantly in 2018 to 74 million tonnes from 52 million in 2000, an increase of 43%.
Another area of use is power generation. Hydrogen can be one of the leading options for storing renewable energy.
There are several hydrogen companies in which you can invest to process the wave of green energy. Here is a list of companies with useful information about their business and inventory performance.
– Ballard Power Systems (NASDAQ: BLDP)
Ballard Power Systems Inc. is a developer and manufacturer of proton exchange membrane fuel cell products for markets such as heavy duty, portable power, material handling as well as engineering services. To date, Ballard has designed and shipped more than 400 MW of fuel cell products.
The share has risen by 216% over the past 12 months.
– Bloom Energy (NYSE: BE)
Bloom Energy is based in San Jose, California. It manufactures and markets solid oxide fuel cells that produce electricity on the premises. Bloom Energy will deliver 1.8 megawatts of hydrogen-powered fuel cells through a multiple implementation from late 2021 to 2022 in Korea.
The share has risen by more than 277% over the past 12 months.
– FuelCell Energy (NASDAQ: FCEL)
FuelCell Energy, Inc. is a fuel cell power company. It designs, manufactures, operates and serves fuel cell solutions.
The share has risen by 819% over the past 3 months.
– Plug Power Inc (NASDAQ: PLUG)
Plug Power is a company in New York that offers clean hydrogen solutions and fuel cell solutions and batteries.
The share has risen by more than 1329% over the past 12 months.
-Cummins Inc (NYSE: CMI)
Cummins sells one of the ten emerging energy technologies in which you can invest today. It is an American multinational corporation that designs, manufactures and distributes engines, filtration and power generation products. In the new power segment, the company focuses on new and emerging alternative power technologies.
Over the past 12 months, CMI has risen about 46%.
– Air products (NYSE: APD)
The company develops, designs, builds, owns and operates industrial gas projects, including gasification projects that sustainably convert abundant natural resources into syngas for the production of high value power, fuels and chemicals.
The stock has risen 1.7% over the past 12 months,
In general, it is clear that companies with the main focus on hydrogen technology have made investors happier.
9. Smart electricity networks
Smart grid is one of the ten emerging energy technologies in which you can invest today. The network refers to network transmission lines and their stations from the power station to your homes or business. What makes a network smart is that the technology provides two-way communication from the utility industry to its customers. Smart grid controls and measures electrical demand and allows automation to work with the entire system.
There are several benefits of smart grid systems for businesses and customers, such as efficient transmission, reduced peak demand, increased integration of large-scale renewable energy systems and better integration of customer-owned renewable energy systems.
Nowadays, there are some applications that enable EV car owners to sell electricity to the grid during high prices. The role of distributed energy sources (DERs) is also increasing. DERs contain small and large solar generation facilities, combined heat and power facilities, and energy storage systems.
Although network businesses now face some challenges, they invest a lot of money in smart grid systems and this inevitably pushes the energy sector higher. Some smart network businesses include:
– Eaton Corporation (NYSE: ETN)
Eaton Corporation is an American multinational power management company based in Ireland focusing on the electrical network. With $ 21.4 billion in sales in 2019, the company provides electric power distribution and control equipment, truck propulsion systems, engine components and a wide range of controls.
The share has risen by more than 19% over the past 12 months.
– Enphase Energy (NASDAQ: ENPH)
Enphase Energy is a large and global company with a large capital industry, offering energy technology companies and suppliers of solar converters in addition to smart energy systems.
the share has risen by 400% over the past 12 months.
– Quanta Services Inc (NYSE: PWR)
Quanta Services is a US corporation that provides fully integrated infrastructure solutions for the utility, pipeline, energy and communications industries. One of the business areas is electric power and its distribution, including transmission.
The share has risen 92% over the past 12 months.
– SolarEdge Technologies Inc (NASDAQ: SEDG)
SolarEdge Technologies makes one of the ten emerging energy technologies in which you can invest today. It provides power optimizers, solar switches and monitoring systems for photovoltaic arrays in addition to network services.
The share has risen by more than 197% over the past twelve months
8. Energy storage
The energy storage market is flourishing worldwide. Battery technology remains the focus of this industry.
In order to compensate for energy imbalances, electricity storage devices manage the amount of power needed to supply customers during peak hours. Furthermore, these storage devices help to smooth renewable energy by controlling the network system.
Lithium-ion technology is still the most widely used. But more importantly, the EV sector dominates the sector as EV batteries are ten times larger than batteries on the grid.
Some top energy storage companies include:
– Eos Energy Enterprises (NASDAQ: EOSE)
Eos Energy Enterprises, Inc. designs, manufactures and implements battery storage solutions for utility, commercial and industrial and renewable energy markets in the United States. The company’s main focus is on aqueous zinc batteries, designed to overcome the limitations of conventional lithium-ion technology.
The share has risen by about 192.4% over the past 12 months
– Sunnova Energy International Inc (NYSE: NOVA)
Sunnova Energy International Inc. is a major capital company in the US that provides services to solar and energy storage services, with customers across the US and its territories. With home solar power systems, battery storage, roof replacement, monitoring, maintenance and financing options, the company has more than 100,000 customers.
The company has a compound annual growth rate of 27%.
– China BAK Battery (NASDAQ: CBAT)
CBAK Energy Technology is a high-tech enterprise in China, engaged in the development, manufacture and sale of high-power lithium batteries.
The CBAT share has risen by 891.3% over the past 12 months.
– Flux Power Holdings (NASDAQ: FLUX)
Flux Power, Inc. designs, develops, manufactures and sells rechargeable lithium-ion energy storage systems for electric forklifts, airport ground equipment and other industrial designs in the United States.
The share has risen 96.6% annually over the past 12 months.
7. Innovative heat pump
Heat pump technology and systems can not be classified as new technologies, but can be considered as the future of heating and cooling systems for residential and commercial projects. The market for the heat pump is likely to increase significantly in the coming years, as the EU is looking for technologies to rapidly increase electrification and carbon dioxide. According to the IEA, nearly 20 million households worldwide purchased heat pumps in 2019. The market’s average annual growth rate has risen by 12% in Europe since 2015.
6. Solar CSP
The solar tree has received a lot of attention worldwide, but apparently the solar technology did not come as a surprise amid rising costs and declining efficiency.
This technology, which is one of the ten emerging energy technologies in which you can invest today, uses a bunch of mirror configurations to concentrate the solar energy on a receiver and to convert to heat. By using the heat, steam is produced, and either a turbine produces electricity or industrial process heat is obtained. The problem is having a limit to reach the desired temperature with current exchange fluids. If it reaches the 1000 degree Celsius levels with some new technologies, the sector will flourish. CSP is expected to see an upward trend through lower installation costs, attractive financing. This energy technology capacity is expected to reach 9.2 GW by 2025.
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Disclosure: None. 10 emerging energy technologies you can invest in today were originally published on Insider Monkey.