Clean Energy Penny Stocks Supercharge Trading On Thursday
Clean energy penny stocks have become a mainstay in the market. With President Joe Biden at the helm, this niche of the energy industry has received much fanfare since the election. Everything from electric vehicle stocks to renewables and alternative energy companies is gaining ground. In fact, many of the names previously reported late last year are no longer under the definition of penny stocks.
One of the key drivers for this is the government’s prolific funding plans for a green energy future. When running for office, Joe Biden pushed for a $2 trillion plan to eliminate all greenhouse gas emissions from the US electricity grid within 15 years. This goal was applauded by some but scoffed at by others as it would require a massive overhaul to the current energy ecosystem as a whole. However, the focus right now is infrastructure and building the means to execute on this 15-year initiative.
The Future Of Clean Energy
The administration is enlisting agencies across the government as it aims to unveil in April a revised target for U.S. emissions reductions. Furthermore, the administration is also restarting the energy department’s loan program. This was a major asset that the government previously had to incentivize clean energy innovation. It also was heavily criticized after a huge stumble resulted from failed solar company Solyndra.
“We’ve learned a lot since then. People understand that when you invest in technology that is new, you’re going to have some that don’t succeed.”
Energy secretary, Jennifer Granholm
On the other side of this coin, companies like Tesla who took advantage of the loan managed to pay it back in full years ahead of schedule. Now we see Tesla as a market leader in EV just a few years later. Granholm recently explained that up to $40 billion in guarantees will be made available for clean-energy projects. This would include everything from wind, solar and hydro power, to advanced vehicles, geothermal, and even nuclear.
With the stimulus bill passed, the next focus will be on infrastructure spending. Republican Senator Shelley Moore Capito is someone who has voiced support for a bipartisan infrastructure bill. “We need to make sure we are not making it unaffordable to turn on those lights, especially during and after an external challenge to grid reliability,” she said in prepared statements this week. She also explained that “clean energy” should include more than just solar and wind. It should also entail nuclear, low-carbon natural gas, hydropower, geothermal and others with relevant carbon-capturing technologies.
Clean Energy Penny Stocks
While this certainly won’t be the first or last time we discuss clean energy penny stocks, it is important to note the rapid progress of this major initiative. It has evidently become one that would appear to garner support from both sides of the isle. How it will ultimately get laid out remains to be seen. However, if there’s one thing we know about penny stocks, in general, it’s that speculation and a little bit of hype can go a long way. With this, here are a few clean energy penny stocks to watch right now.
- Comstock Mining (NYSE: LODE)
- Fuel Tech (NASDAQ: FTEK)
- Tellurian Inc. (NASDAQ: TELL)
Comstock Mining
As a natural resource mining company, you might peg LODE as not so much a clean energy stock but a standard-issue mining stock. However, the moves made recently could put a whole different spin on Comstock, in general. If you remember, a few weeks back, we discussed Comstock’s latest push to gain footing in the lithium-ion niche of the energy industry. This came as the company acquired a majority stake in rights to LiNiCo, which is a lithium-ion battery recycling company.
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One of the unique aspects of the clean energy arena right now is that infrastructure is fragmented. When you talk about the entire supply chain, there are still many open pockets of unmet needs. Growing demand for EVs sheds a lot of light on pre- and post-battery lifecycles. In this case, the acquisition builds upon the company’s clean energy transition plan. It also included the acquisition of an indirect stake in cathode recycling company, Green Li-Ion.
“We have successfully restructured our business over the past three years by eliminating debt and dramatically reducing costs, while repositioning our assets to build stakeholder value with transformative, high value, high impact, climate smart mining and valorization projects, in large part to meet rapidly escalating demand for the increasingly scarce metals and other raw materials needed to fuel the global transition to clean energy,” stated Corrado DeGasperis, Executive Chairman and CEO. LODE stock has walked the line between energy and mining stock with a clear initiative targeting this clean energy transition most recently.
Fuel Tech
Some of the energy penny stocks that have experienced explosive moves have dealt with alternative fuels (no pun intended). Companies like Plug Power (NASDAQ: PLUG), Fuel Cell Energy (NASDAQ: FCEL), and Gevo (NASDAQ: GEVO) were all shining examples of this, Fuel Tech has fallen into the mix more recently. In particular, Fuel Tech focuses on emissions control. This includes optimizing combustion systems and even water treatment for utility and industrial applications.
Its FUEL CHEM® technology aims at improving the efficiency, reliability, fuel flexibility, and environmental status of combustion units. On the water treatment side, its technologies include DGI™ Dissolved Gas Infusion Systems. These use a patented nozzle to deliver supersaturated oxygen solutions and other gas-water combinations to target process applications or environmental issues.
The company has earnings coming up next week. This may seem status quo; however, Fuel Tech has a history of revealing significant details in its business updates and earnings calls. In its last update, Vincent J. Arnone, President, and CEO said, “Within our Air Pollution Control (APC) business segment, we remain intensely focused on providing custom-engineered solutions that fulfill the unique needs of each of our customers, and expect the final decisions to be made on multiple projects by the end of the year which, if Fuel Tech’s bids are selected, would increase backlog for 2021 and beyond by $10 to $15 million.”
So, heading into the next round of earnings, it will be important to get a temperature on Fuel Tech’s outlook.
Tellurian Inc.
The focus is obviously on renewables and clean energy. But let’s not forget the Biden initiative, from a bigger picture, focuses on carbon neutrality. It wouldn’t be uncommon to see natural gas stocks as part of the conversation in this light. Furthermore, Senators like Shelley Moore Capito have made it clear that not only wind and solar but low-carbon natural gas, for example, will likely be a focus.
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Tellurian has built a global natural gas business. The company holds everything from production, liquified natural gas trading, and infrastructure, including an associated pipeline, in its portfolio. Octavio Simoes, President and CEO of Tellurian, recently said in the company’s 2020 earnings report, “As the global market transitions away from coal and natural gas demand continues to increase, LNG is a powerful resource in the quest to provide energy access with a much lower carbon footprint and energy equity to the growing global population.”
Tellurian produced 16.9 billion cubic feet (Bcf) of natural gas in 2020. This was much higher as compared to 13.9 Bcf for the prior year. The company also generated roughly $30.4 million in revenues from natural gas sales.
Obviously, with a push for low-carbon infrastructure, there will still be a need for easily accessible means of energy. LNG has become a core focus in this process.
Clean Energy Penny Stocks In 2021
This clean energy initiative will be no small task. It will also take a lot of money to achieve. However, if there’s money to be spent, investors are following right behind it. One thing to keep in mind, especially when it comes to these smaller growth stocks, is that speculation can play a much larger role. With that, so too can volatility. If you’re investigating this newly revived market niche, I think it’s important to keep this in mind.
