The U.S. Department of Energy is now backing continued research of an incredible fuel that has up to three times the energy content of gasoline.
More importantly, it could be the only fuel on earth that produces zero emissions when burned.
Until recently, this remarkable fuel was considered too dangerous and expensive to be used commercially…
But a new technological breakthrough appears to have made the adoption of this super fuel much more likely.
In a market that’s projected to grow to over $81 billion.
Not a bad position to be in when the DOE has expressed its commitment to continued research for the comprehensive development, demonstration, and commercialization of this energy source.
This up-and-coming energy source harnesses the second-most widely used inorganic chemical in the world…
So supply shouldn’t be an issue.
But getting your hands on the technology that makes this all possible… well we think that is no easy task.
HARNESSING A RENEWABLE ENERGY SOURCE THAT MAY BE 3X MORE POWERFUL -- AND CLEANER -- THAN GASOLINE
Throughout the history of the energy industry, new--more powerful--sources of energy have started off small … and then come to dominate the industry for a time.
From coal ... to petroleum ... to natural gas... And now, renewables.
Each new energy source had a scientific problem to overcome before widespread adoption.
With coal, the advancement of the steam engine in the 19th century dramatically improved the efficiency of coal mining and transport during the Industrial Revolution.
With petroleum, the Scottish chemist James Young devised a method to refine paraffin from crude oil for easy transport.
With natural gas, it was being able to cool it to -160° C to form Liquefied Natural Gas (LNG) so it could be used for profitable and safe transportation in ships.
For decades, scientists have been researching how to bring one new energy source – an energy source with nearly three times more energy than gasoline--online.
And now one unknown company (with a former NASA scientist at the helm) may have figured out the next stage of the renewable story…
In short: We think this company could become one of the biggest beneficiaries of a new market that might take over renewables...
NEW RENEWABLE: THE DEATH OF LITHIUM?
For decades, lithium had been thought to be the solution to the clean energy movement.
Unfortunately, it has been proven that lithium will not be able to provide enough power for long-range trucks... ocean-going freighters... military vehicles...trains… planes... jets, and more.
Why? The story of energy transitions through history has been a constant move toward fuels that are more energy-dense and convenient to use than the fuels they replaced.
Fossil fuels are the most energy-dense, making them hard to replace.
At 53.1 MJ/kg, natural gas boasts the highest energy density of any fossil fuel, followed by gasoline at 45.8MJ/kg, and coal at 30.2MJ/kg.
Lithium-ion batteries--one of the most effective ways to store renewable energy--can only afford an energy density of 0.504MJ/kg. That’s 91 times less energy density than gasoline!
So, while lithium could become the predominant energy carrier for small vehicles like cars and small vans...
It simply doesn't appear to have enough power density to become practical for HEAVY industries.
But now finally... scientists may be able to harness a NEW renewable replacement that CAN easily power heavy industry.
So, what has nearly 3X more energy than gasoline?
And is a widely used inorganic chemical?
But, until now, the technology didn't exist to transport it safely and economically.
Here are five reasons to look seriously at this company, now:
#1 AmmPower IS DEVELOPING TECHNOLOGIES FOR AN $81 BILLION ENERGY OPPORTUNITY
After decades of stagnation and multiple false dawns, we think the hydrogen economy now appears primed for a major takeoff.
Entire countries and industries are proactively investing in the development of hydrogen technologies.
Hydrogen is now being dubbed by some as a ‘fuel of the future.’
Meanwhile, some are predicting that hydrogen could become a globally-traded energy source, just like oil and gas.
Bank of America says hydrogen technology is at a tipping point and could be set to explode with a total market potential reaching $11 trillion by 2050.
Last year, the European Union set out its new hydrogen strategy… and now, the private sector may be looking to give the EU a run for its money.
Some of the world’s green hydrogen leaders have joined hands with an ambitious goal to drive a 50-fold scale-up in green hydrogen production over the next six years.
The Green Hydrogen Catapult Initiative is another huge endeavor founded by Saudi clean energy group ACWA Power, Australian project developer CWP Renewables, European energy giants Iberdrola and Ørsted, Chinese wind turbine manufacturer Envision, Italian gas group Snam, and Yara, a Norwegian fertilizer producer.
They aim to drive 25GW of green – easily transportable -- hydrogen production by 2026.
That transportation breakthrough could push hydrogen costs below $2/kg, making it competitive with fossil fuels.
So what is the connection between hydrogen and ammonia?
To put it simply, hydrogen is an absolute nightmare to store and transport. Despite its incredible energy content, it has a very low volumetric energy density, which means it must be stored under incredibly high pressure. Even when compressed to 800 atmospheres, it occupies three times more volume than gasoline for the same energy. With such high pressure, it requires incredibly heavy and fortified tanks to store hydrogen. This appeared to be an insurmountable problem… until ammonia is involved.
Liquid ammonia, which is made up of one nitrogen atom and three hydrogen atoms, has a volumetric hydrogen density about 45% higher than that of liquid hydrogen. It also has the advantage of being easy and safe to store. It is ammonia, and the remarkable technological breakthroughs being made by companies like AmmPower, that may hold the key to the hydrogen revolution.
AmmPower along with a handful of smaller organizations such as Iceland-based Atmonia and Colorado-based Starfire Energy, may have a clear first-mover advantage as the only companies on the planet developing innovative ways to revolutionize the entire ammonia production process and produce carbon-free ammonia.
Through the combination of science and industrial manufacturing, we expect AmmPower’s team will look to file multiple patent applications in conjunction with the formation of intellectual property.
The company aims to spearhead catalytic research for optimal ammonia production as well as develop stable and reliable production processes.
It also intends to combine process and manufacturing techniques to develop an ammonia-producing unit. The company expects these units will be ready in prototype form in Q4 of 2021, with sales beginning in 2022.
#3 THE FIRST TANKERS MAY SOON BE TRAVELLING THE OCEAN
Until recently, the global LNG market thought it was the new god of the sea.
But hydrogen and ammonia may be ready to dethrone it.
Even the World Bank has recommended avoiding LNG bunkering. Hydrogen and ammonia, it says, may offer the best long-term solutions for shipping.
According to Argus, global ammonia production currently stands at 180mn t/yr, but its potential use as an energy source and energy carrier could see demand for it rise to a multi-billion-tonne market for use in a wide range of applications.
Indeed, the global ammonia industry is predicted to reach $70.3 billion by the year 2027.
And the first hydrogen/ammonia tankers may soon be setting sail.
The supply vessel Viking Energy is being retrofitted with a 2-megawatt ammonia fuel-cell system.
Wärtsilä is reported to be working on four-stroke ammonia engine designs, hoping to reach the stage of field tests as soon as 2022. And the Finnish marine-to-energy giant is developing ammonia storage and supply systems to install ammonia fuel cells on Eidesvik Offshore’s supply vessel Viking Energy by 2023, part of the EU project ShipFC.
Image Credit: Greentech Media / Finnish power solutions company Wärtsilä is already testing an ammonia engine.
Ammonia is also being considered as a means to store renewable energy for delayed use, and as a carrier for hydrogen transportation. That’s because, as an energy source, ammonia has 9x the energy capacity of lithium-ion batteries and is 1.8X more energy-dense than liquid hydrogen.
Yet, widespread use of ammonia in these sectors can be viable only if the CO2 emissions associated with its actual production are sharply reduced. This will require significant fresh investment in new technology and, based on current renewable energy prices, a rise in operating costs.
In 2020, the International Maritime Organization (IMO) imposed a cap on marine sulfur emissions, upending the shipping industry. There’s more to come, and we think it’s all about hydrogen and ammonia.
The next major regulatory change for the shipping industry is for vessels to sharply reduce CO2 emissions.
Green ammonia is gaining particular ground, both for combustion as a marine fuel and in fuel cells on ships.
In North America, AmmPower Corp. (CSE:AMMP; OTC: AMMPF) is aiming to be a green ammonia pioneer. The company is working on developing innovative ways to revolutionize the entire ammonia production process using proprietary technologies that may potentially move away from the traditional Haber-Bosch process altogether.
# 4 AmmPower LOOKS LIKE A DIVERSIFIED ENERGY PLAY
In our view, this isn’t just a one-trick play. This company appears to have clean energy disruption potential on several levels.
AmmPower says it is building modular, scalable, stackable green ammonia-producing units that are flexible enough to fit a wide array of customers from individual organizations, large marine ports, and distribution hubs.
Its team is also working to develop a proprietary ammonia production process by incorporating innovative catalysts and refining processing conditions to more efficiently produce ammonia.
Further, AmmPower reports that it’s in the process of securing a state-of-the-art manufacturing facility in Michigan to develop optimal catalytic reactions that produce green ammonia.
The company that can figure out how to produce economical, carbon-free, and scalable ammonia may have three massive markets to sell to.
That’s exactly what Ammpower is planning. It’s focused on a process that can break water down into hydrogen and oxygen and then add nitrogen from the atmosphere to create ammonia. It’s also committed to using carbon-free energy sources.
We think the real coup is this: It’s not just designed to be efficient, mobile, and scalable, it could also allow hydrogen cracking to be done closer to the end-user. That would be a huge advancement, especially for hydrogen transportation. That might massively reduce point-to-point logistics costs.
AmmPower will aim to sell products it develops to these three huge markets: the fertilizer Industry, the fuel industry, and the transport sector.
It may start with the low-hanging fruit --selling to the fertilizer industry. Then it could target the fuel and hydrogen transport industries as those markets mature.
This three-pronged strategy helps to increase the chance of success of this approx. $62M company.
#5 TAKE A LOOK BEFORE AmmPower Corp’s PROJECTS ADVANCE FURTHER
In less than 18 MONTHS from now, the company aims to deliver its first production units and ramp production to facility capacity.
That would be a tall order for many startups … but let’s not forget that AmmPower is headed by what looks to be a very solid and highly competent team ready to take on the challenges of the biggest energy transition in modern history.
We think this is where engineering meets finance, and where the brains of NASA meet the best brains in the business.
CEO Dr. Gary N. Benninger is an award-winning former NASA and Ford engineer. He’s also a former senior executive of the $40-billion Magna International Inc. automotive parts supplier, the third-largest in the world, as well as a former Captain in the U.S. Army with a Ph.D. in physics.
He’s joined by Dr. Lusia Moreno, a senior investment bank analyst, with an impressive track record and a doctorate in Materials Science and Mechanics from Imperial College London. Not to mention a lineup of other experienced team members.
The best part right now? This stock looks like it’s still flying under Wall Street’s radar.
Hydrogen may end up taking over heavy industries. Green ammonia may enable it to do that, and so much more. This could be far bigger than lithium.
That means AmmPower is developing technology in a sector on the verge of a massive opportunity. The technology it’s developing uses ammonia to safely store and ship hydrogen.
And over 120 ports around the world have already built or are in the process of building scalable ammonia handling facilities.
The company is aiming to become a world leader in scalable proprietary production of Green Ammonia, and in our view, there couldn’t be a better time to harness the potential of this space.
And to us it’s not a “pure-play”—it’s a diversified company targeting three huge markets in an enormous energy-related opportunity, yet its market cap is only about $62 million. We think there’s a big potential for upside.
Other companies to watch for new energy opportunities:
Ballard Power Systems (NASDAQ:BLPD) is a company that manufactures fuel cell systems. The company has been in operation for over 50 years and employs more than 1,000 people globally. Ballard's most recent success was the rollout of their FCveloCity™ product line which utilizes an advanced proton exchange membrane (PEM) technology to provide renewable energy solutions for commercial customers.
Ballard's products are used in multiple industries including transportation, heavy-duty power generation, off-grid telecom towers, and emergency backup power at remote locations where grid connection is not possible or cost-prohibitive. With global demand for clean energy on the rise due to environmental concerns and government mandates, Ballard Power Systems projects continued growth
Though Ballard has come back to Earth after its February run where it climbed by nearly 100% in just a month’s time, Ballard is still -deservingly- valued at over $5 billion. And this could be just the beginning, especially as fuel cell technology continues to gain ground in the energy landscape.
Amazon (NASDAQ:AMZN) is investing big on the transportation of tomorrow too – leading a $700 million investment round in EV startup Rivian before acquiring robo-taxi startup Zoox for over $1 billion. It’s also carved out a major investment in an electric airplane startup, Beta, and a hydrogen-powered airline startup ZeroAvia. While the company hasn’t disclosed exactly how much it has invested in these projects, it’s clear that Bezos’ Amazon is eyeing a greener future, and putting its money where its mouth is.
All of Amazon’s electric and hydrogen investments go hand-in-hand with its lofty renewable energy goals. From powering data centers with green energy to rethinking its entire supply chain, Amazon has proven that it is committed to going green in a big way. And it makes sense. It’s what investors want. And as we’ve seen with Amazon in the past, it truly values shareholder input.
Amazon’s approach is paying off, as well. Since May last year, the company’s stock price has increased by nearly $800. And with rumors of a potential stock split circulating financial news sites, investors could be in for another outstanding year.
Another giant, Microsoft (NASDAQ:MSFT) is also getting into the green energy game. Particularly with a big bet on hydrogen. The company is going all-in on research and development in this new industry, under the hypothesis that green hydrogen could completely change electrical systems that power data centers. And that could be huge news for the company’s thriving cloud-computing business.
Mark Monroe, the principal engineer at Microsoft’s Datacenter Advanced Development Group, explaining the company’s research into hydrogen fuel cells, noted, “Our goal was to scare our engineering group as little as possible by saying that this is just a drop-in diesel generator replacement, so we don’t have to change any of the electrical design.” Monroe went on to say, “The real opportunity, in my opinion, is when we start getting into generation two of this and say, well, ‘What would we do differently with the electrical system in a hyperscale data center if we had reliable direct current non-polluting power available at the drop of a hat?”
Apple (NASDAQ:AAPL) has always been a green energy pioneer in the tech world. And that’s largely thanks to Ex-CEO Steve Jobs. He paved the way to a renewable future for the company and the industry as a whole. From the products themselves to the packages they come in, and even the data centers powering them, Jobs went above and beyond to cut the environmental impact of his company.
And now, the $2 trillion tech giant is looking into hydrogen, as well. Apple is already locking down patents and fueling new speculation left and right, from laptop applications to rumors of a partnership with Hyundai. One thing that remains clear, however, is its commitment to a greener tomorrow.
In addition to the impact on the environment, Apple is distinctly aware of the political implications of remaining reliant on fossil fuels, as well. In a statement, Apple noted, "Our country's continuing reliance on fossil fuels has forced our government to maintain complicated political and military relationships with unstable governments in the Middle East, and has also exposed our coastlines and our citizens to the associated hazards of offshore drilling."
Apple isn’t the first to look into hydrogen fuel cells to solve power problems, however. Hewlett-Packard (NYSE:HPQ) is a veteran in the game. Way back in 2017, it had already been hypothesizing and testing new and exciting ways to utilize hydrogen fuel cells to create carbon-free data centers in a way that wouldn’t disrupt current electrical grids.
In a post on its website from 2018, the company wrote, “Hydrogen fuel cells lie at the heart of this strategy. These devices create energy through the electrochemical reaction between air and hydrogen. The electricity produced can be stored in batteries or used to drive an electric motor that powers a vehicle. Daimler and other automotive manufacturers, for example, have been successfully testing fuel cells in cars for many years,” adding that “the advantage of fuel cells over traditional fossil fuel-powered devices is they are sustainable and carbon-neutral—their only by-product is water. This means data centers no longer need to rely on diesel generators or other carbon-heavy backup power sources to cover any power gaps.”
Hewlett-Packard, though a heavyweight in the desktop and laptop production game, is a solid stock that has flown under a lot of investors’ radars. Despite rising by nearly 50% year-to-date, Hewlett-Packard lags behind in volume compared to many of its peers. Though it’s not as flashy as Apple or Amazon, it remains a strong pick for investors looking to buy and hold for the long term. Its innovation and climate awareness will likely be a major selling point in the coming years.
Canada’s tech firms are betting big on a renewable future, as well.
Take Shopify Inc (NYSE:SHOP, TSX:SH), for example. It is an absolute beast in the e-commerce world. In fact, because of its simple-to-use platform, it would be hard to have not stumbled onto a shop built with its technology. One key issue to watch is the looming global chipmaker shortage which, Shopify, though it does not produce any hardware, could be impacted indirectly. Whether it’s through limited demand from its numerous tech clients or disruptions in infrastructure shortages.
Global lockdowns accelerated Shopify’s already tremendous growth. Since March 2020 alone, Shopify has seen its price rise from just $495 per share to a high of $1800 per share before settling down to its current price. The company has already shown its potential and its appeal to shareholders who value renewable energy, but as it continues to grow, so will its innovative solutions for businesses, and by extension, its share price.
Blackberry Limited (NYSE:BB, TSX:BB) is another one of Canada’s tech giants that is embracing the green revolution. While it has pivoted away from its iconic cell phones of yesteryear, it is still very much involved in pushing the tech industry. It’s even building a global digitized healthcare database leveraging blockchain technology. From its high-profile partnerships with the likes of Amazon and more to its key posturing in the Internet of Things explosion, BlackBerry is a great stock that could be trading at a relative discount compared to some of its peers.
The company even launched a new R&D arm, BlackBerry Advanced Technology Labs. “Today’s cybersecurity industry is rapidly advancing and BlackBerry Labs will operate as its own business unit solely focused on innovating and developing the technologies of tomorrow that will be necessary for our sustained competitive success, from A to Z; Artificial Intelligence to Zero-Trust environments,” explained Charles Eagan, BlackBerry CTO.
EXFO Inc (TSX:EXFO) isn’t new to the Canadian tech sector. The company was founded in 1985 in Quebec City, and its original products were portable testing products for optical networks. Since then, the company has acquired and build 3G, LTE, protocol, copper/xDSL, IMS, and VoIP test and service assurance products.
Recent developments from EXFO are promising for long term growth potential. The new baseband unit emulation technology which is sure to be adopted on a large scale, as the tech offers operators a reduction of costs and a faster revenue stream
Telus Corporation’s (TSE:T) long-standing commitment to putting its customers first fuels every aspect of its business, has had it a definitive leader in Canada. In fact, Telus Health is one of the country’s biggest healthcare IT providers. And it’s done so with sustainability in focus.
Driven by its goal to connect all Canadians for good, it has contributed over $55 in community giving, reduced emissions by 31% and has four consecutive years on the Dow Jones Sustainability World Index.
Shaw Communications Inc. (TSX:SJR) is a major player in the Canadian telecoms sector. It owns a ton of infrastructure throughout Canada and its cloud services and open-source projects look to address some of the biggest issues that its customers might face before the customers even face them. As online gaming depends on solid internet connections, Shaw will likely become a backdoor benefactor in increased online activity. Not only that, it’s growing higher on ESG investors’ lists, as well, thanks to its forward-thinking approach to the environment and its governance.
By. Paulie Jessop
**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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