Over a century ago, a unique chemical process helped take the world from the brink of a food crisis that would’ve led many to starve.
It was called “the biggest global problem solved by chemistry” and delivered its creators a well-deserved Nobel Prize.
But today, this breakthrough could help revolutionize the $1.5 trillion green energy revolution, resulting in substantial upside for the companies leading the charge in the industry.
That’s because ammonia, one of the largest traded commodities in the world, is now playing a little-known role in powering hydrogen fuel cells.
Many of the world's largest economies have already adopted formal hydrogen strategies over the past year, like the European Union, India, and Canada.
Several major oil companies like Shell, Saudi Aramco, and ExxonMobil have also started sketching out plans for getting into the global hydrogen market as well.
And some of the biggest automakers in the world have been investing in hydrogen fuel cell technology, including GM, BMW, Daimler AG, and Groupe Renault, to name just a few.
But there's been one major problem standing in the way of hydrogen taking its place as the clear winner atop the green energy space.
The cost is too much of a barrier for hydrogen fuel cell EVs to go mainstream at the moment.
Is Proprietary Technology Getting Set to Drive the Boom?
AmmPower has come onto the scene strong, potentially developing new, proprietary technology that could soon help supercharge this hydrogen industry surge.
Their technology is aimed to help produce clean ammonia, a key component in both producing and transporting hydrogen, much more efficiently.
That's because while hydrogen is said to be the "sleeping giant" in the future of alternative energy, its chemical properties make it dreadfully expensive to transport.
Since hydrogen needs to be stored at a frigid -253 degrees Celsius, it requires a different level of logistics to keep the fuel cold enough to remain in its liquid state.
But ammonium, on the other hand, needs to be kept at just -33 degrees Celsius, a more than 200-degree difference in temperature.
That means it's both much easier and far cheaper to transport.
And from there, ammonium (NH3) can easily be broken down to hydrogen gas (H2) using green electricity.
The company reports that their modular units will be made to work for a wide array of customers, including everyone from farmers using the ammonia for fertilizer to large marine ports and distribution hubs.
They say these unique units will be modular, scalable, and stackable.
That means it could be flexible enough to be used for a whole slew of different purposes, and customers could ramp up ammonia production over time if needed as well.
Ammonia has the potential to play a significant role in the green energy movement, as it can be used to capture, store, and transport hydrogen gas more cheaply and easily.
This may be one reason why even oil giant Saudi Aramco started shipping cargo of ammonia to Japan late last year…
Signaling their plans to get involved in the massive movement toward hydrogen fuels, and using ammonia as a means to get more bang for their buck.
But we also think AmmPower may actually be onto another major opportunity - one that could potentially be even greater - that we haven't discussed yet.
The Creation of a Potentially Massive New Market
While the hydrogen energy transition has brought in a wave of renewed interest in ammonia, the potential for this unique compound goes even further.
That’s because ammonia may actually be used as a powerful fuel all on its own.
In fact, ammonia has been said to hold as much as 9x the energy of today’s lithium-ion batteries.
So while much of the media hype has been around electric vehicles with their next-generation “million-mile” batteries...
Ammonia has such potential to be used as a powerful fuel, it could soon power everything from cars to vans, trucks, forklifts, and even jets.
And now, with the International Marine Organization mandating that the marine industry reach an ambitious goal of ZERO carbon emissions by 2050...
It's started a flood of innovation in the EV industry beyond just the vehicles used on land.
That's why AmmPower has been focusing so much of its attention on what we think is a completely overlooked, new opportunity.
The marine transportation industry has already started making big moves ahead of the mandate.
MAN Energy and Samsung Heavy Industries have been part of new initiatives to develop the first ammonia-fueled oil tankers.
And Viking Energy is poised to become the first vessel propelled by ammonia fuel cells.
That means ammonia could soon be used as a green energy fuel even for massive cargo ships.
And with 120 ports already equipped with ammonia terminals, the infrastructure looks to be in place to support the shift in several key ports.
We think the flexibility these units offer, along with the ability to produce even larger amounts of these powerful fuels, could be a huge boon to the next generation of clean energy.
And we believe investors can have even more confidence in AmmPower’s plans based on the all-star team they've built around them to lead the charge.
An Outstanding and Experienced Team
At the moment, AmmPower reports it is currently securing a 15,000 square foot state-of-the-art manufacturing facility in Michigan.
Their system will be built on some of the best catalyst technology in the industry and blend that with the proprietary methods they are developing to produce the cleanest ammonia possible.
And the team leading the charge has an outstanding list of credentials that give us plenty of confidence they can live up to their exciting potential.
The team looks to have plenty of experience developing cutting-edge work and building a moat to protect their intellectual property to keep their advantage over competitors.
And their CEO and Executive Chairman, Gary Benninger, has a long list of accomplishments as well, with a solid track record in the automotive space.
After working as a research scientist at NASA and a product engineering manager at Ford...
Benninger went on to become Executive VP of Engineering and R&D at Magna International, one of the top automotive parts suppliers in the world.
And he later went on to become CEO of another company that was traded on the NASDAQ.
All that to say, we think he has the necessary experience in developing significant breakthroughs at high levels and in leading his teams to become some of the best in their industry.
And that's exactly what he plans to do with AmmPower today.
The potential in the alternative energy industry could be massive, with billion-dollar titans like Yara International and CF Industries looking into producing green ammonia.
But while many of the players in the energy industry have gone on to become worth $500 to $600 million in market cap, AmmPower is still early stage at a modest $37 million market cap.
Plus, at the moment, shares are trading for just over $1.
Currently, we’re aware of no other public company in the industry that’s at the same stage in producing ammonia units like theirs.
In the days and months ahead, we think they are definitely worth watching in both playing the hydrogen energy boom and the exciting potential rise of ammonia fuel cells.
Other companies to watch as alternative transportation gains traction:
Thanks to a massive influx of millennial money and the multi-trillion-dollar green energy boom, Tesla Inc. (NASDAQ:TSLA) has emerged as one of the fastest-growing stocks of all time.. And though it’s been caught in some controversial stances this year, like Elon Musk’s decision to buy…and then sell bitcoin, the company is still as promising as ever. Morgan Stanley has even set its price target at $900, which suggests there’s still a near 50% upside for the EV giant, despite some of its recent dips.
Elon Musk is truly a visionary of the times. From his electric vehicle innovations and space ambitions to his forward-thinking approach to cryptocurrencies, Elon Musk may well become the first trillionaire, and Tesla shareholders are set to ride the wave. In fact, ee released the first Tesla Roadster back in 2008, making electric vehicles cool when people were laughing at first-gen electric vehicles. Since then, Tesla’s stock has skyrocketed by over 14,000%. And it’s not just about cars, either. Musk is looking towards a much bigger picture, building the foundation for an electrified future on all fronts.
Yet Elon Musk’s jewel has not been trouble-free, either. In February, Tesla said it would recall more than 130,000 vehicles on safety concerns. These regarded touchscreen failures that could lead to the loss of several safety-related features while driving, CNBC reported at the time.
Traditional automakers aren’t going to be left behind, either. Both Ford and GM are betting big on this emerging new industry.
The future of vehicle transportation is here. Xpeng Motors (NYSE:XPEV) has developed an all-electric, fully autonomous car that can be ordered with a few taps on your phone. It features a range of 250 miles and will get you from point A to B in less time than it would take to hail a cab or drive yourself. This game-changing company is set to disrupt the world's automotive industry with unparalleled convenience and affordability for everyone.
Xpeng has also been drawing plenty of interest from Big Money, managing to raise nearly a billion dollars from heavy hitters such as Alibaba, Abu Dhabi’s sovereign wealth fund Mubadala Qatar Investment Authority, Hillhouse Capital, and Sequoia Capital China.
Newcomers like Xpeng provide an excellent opportunity for investors who missed out on Tesla’s meteoric rise or Chinese Tencent-backed Nio’s storming of the market in 2020--even if its shares did rise too far, too fast.
It wasn’t so long ago that analysts and investors alike were ready to write off their losses and give up on electric vehicle manufacturer Nio Inc (NYSE:NIO) Its debut on the NYSE wasn’t as exciting as many had hoped for. In fact, the company struggled to bat away short-sellers and naysayers until 2020, with rumors of bankruptcy swirling. But after reporting a record number of deliveries, launching its revolutionary “Battery-as-a-service” platform, and a multi-billion-dollar bump from Chinese investors, the company’s stock price skyrocketed by 1604%, starting off the year at $59 per share, before falling back to earth and settling at its current price of $42.10.
Since the start of 2020, NIO has been on an absolute tear. It recently unveiled a pair of vehicles that would make even the biggest Tesla devotees truly contemplate their brand loyalty. The vehicles, meant to compete with Tesla’s Model 3, could be exactly what the company needs to take control of its domestic market. And in an absolute game-changer for the industry, Nio has also started to offer a batteries-as-a-service concept, in which car buyers can ‘lease’ the battery of their vehicle and save as much as $10,000 on the price of a new vehicle, while also offering buyers the option to swap batteries after a few years of use.
Li Auto (NASDAQ:LI) is another ambitious company looking to make a dent in the Chinese electric vehicle space. And while it may not be a veteran in the market like Tesla or even NIO, it’s quickly making waves on Wall Street. Founded just five years ago by Li Xiang, and backed by domestic investment giants Meituan and Bytedance, Li has taken a different approach to the electric vehicle market. Li specializes in plug-in hybrid vehicles. This means it can be powered by electricity or gasoline, or a mixture of both, giving customers a wider array of fueling options compared to its competitors.
Its fashionable crossover SUV has been a hit in China, and thanks to its success, its garnered a lot of investor interest. Though Li just hit the NASDAQ in July, the company has already seen its stock price more than double. With estimates suggesting that there could be as many as 125 million electric vehicles on the road in the next ten years, and a growing call to ban gasoline-powered cars, alternative transportation companies like Li are essentially still in their infancy.
NFI Group (TSX:NFI) is another one of Canada’s home-grown electric vehicle pioneers producing transit busses and 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 still offers investors a promising opportunity to capitalize on the electric vehicle boom.
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. This is huge because it gives investors an opportunity to gain exposure to this booming industry while the stock is cheap and hold steady until the market finally discovers this gem.
Celestica (NYSE:CLS, TSX:CLS) is a key company in the lithium boom due to is role as one of the top manufacturers of electronics in the Americas. Celestica’s wide range of products includes but is not limited to communications solutions, enterprise and cloud services, aerospace and defense products, renewable energy and enough health technology.
Thanks to its exposure to the renewable energy market, Celestica’s future is tied hand-in-hand with the green energy boom that’s sweeping the world at the moment. It helps build smart and efficient products that integrate the latest in power generation, conversion and management technology to deliver smarter, more efficient grid and off-grid applications for the world’s leading energy equipment manufacturers and developers.
Maxar Technologies (NYSE:MAXR, TSX:MAXR) is a moon-bound tech stock to keep an eye on. 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.
Thanks to Maxar’s incredible tech and innovative approach to the already extremely complicated space industry, the company has seen its share price climb where many of its peers have struggled.
Turquoise Hill Resources Ltd. (NYSE:TRQ, TSX:TRQ) is a key player in Canada’s resource and mineral industry. It is a major producer of coal and zinc, two resources with distinctly different futures. While headlines are already touting the end of coal, zinc is a mineral that will play a key role in the future of energy for years and years to come.
In addition to its zinc operations, Turquoise Hill is also a significant producer of Uranium. Uranium is a key material in the production of nuclear energy, which many analysts are suggesting could be a major component in the global transition to cleaner energy. While the mineral has not seen significant price action in recent years, there are a number of new projects set to come online across the globe in the medium term, which could be a boon to Turquoise Hill, especially as alternative energies gain traction in the marketplace.
Teck Resources (TSX:TECK) could be one of the best-diversified miners out there, with a broad portfolio of Copper, Zinc, Energy, Gold, Silver, and Molybdenum assets. It’s even involved in the oil scene! With its free cash flow and a lower volatility outlook for base metals in combination with a growing push for copper and zinc to create batteries, Teck could emerge as one of the year’s most exciting miners.
Though Teck has not quite returned to its January highs, it has seen a promising rebound since April lows. In addition to its positive trajectory, the company has seen a fair amount of insider buying, which tells shareholders that the management team is serious about continuing to add shareholder value. In addition to insider buying, Teck has been added to a number of hedge fund portfolios as well, suggesting that not only do insiders believe in the company, but also the smart money that’s really driving the markets.
By. Mike Heelis
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this publication include that the global demand for ammonia and hydrogen as commodities will continue to increase; that the research and development in the energy sector will lead to adoption of hydrogen and ammonia as commercially viable fuel sources for the automotive, aircraft, marine, industrial or other sectors in the future; that governments will continue to implement initiatives supporting reduced carbon emissions and that ammonia and hydrogen will gain traction and commercial viability as potential carbon-free or low carbon fuel alternatives; that AMMP will be able to develop an efficient process and proprietary intellectual property for the production of green ammonia and that AMMP’s process, if developed, will be adopted commercially to allow use of green ammonia and/or hydrogen as a viable fuel sources; that AMMP will meet its proposed development program and funding milestones to develop its technology process and produce the proposed AMMP power units; that AMMP will be able to establish its proposed manufacturing facility and produce ammonia power units which will be sold as commercially viable fuel alternatives; that investors will continue to seek opportunities for investment in green technologies and that hydrogen and ammonia will be considered as viable investment opportunities in the future; and that AMMP can carry out its business plans. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include the global demand for ammonia and hydrogen may not actually continue to increase if other energy alternatives such as solar, wind or hydroelectric are favored over ammonia and hydrogen; that the research and development in the energy sector may lead to rejection of hydrogen and ammonia as commercially viable fuel sources for the automotive, aircraft, marine, industrial or other sectors in the future, and that research may find that other fuels or energy sources provide safer, more cost efficient and/or more viable fuel alternatives; that governments may not implement the anticipated funding and initiatives to support reduced carbon emissions sufficient for ammonia and hydrogen to gain necessary traction or commercial viability as fuel alternatives; that AMMP may be unable to develop an efficient process or any unique proprietary intellectual property for the production of green ammonia or, even if developed, may ultimately fail to be adopted as commercially viable for various reasons; that AMMP may be unable meet its proposed development timeline and funding milestones to develop its technology process and produce the proposed AMMP power units; that AMMP may be unable to establish its proposed manufacturing facility and produce ammonia power units, or if such units are developed, that they may not be sold as commercially viable fuel alternatives; that investors favour other clean energy opportunities than hydrogen and ammonia or that other fuel alternatives such as solar, wind and hydroelectric may be considered more commercially viable; and that AMMP may, for any number of reasons, fail to carry out its intended business plans. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
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