The worldwide shift toward cleaner, greener energy sources once again appears to be picking up speed.
While the world’s focus on climate change understandably took a backseat to the Covid-19 pandemic for most of the past 18 months, that focus on climate change has started to return in a powerful way.
In fact, our transition into a post-pandemic environment is triggering a number of significant opportunities in the green energy space.
Much of the early attention of the clean energy movement was focused on lithium thanks to the heavy attention paid to the electric vehicle markets.
But a stark reality has emerged for lithium in that it has become increasingly obvious that lithium may not be able to provide enough power to support a full transition of heavier industries to clean and sustainable energy sources.
Many of these “heavy” industries – including the maritime and shipping industries – have already begun to search for alternatives that can help power a sustainable future.
One of those alternative energy sources – which appears to have the potential to provide a tremendous amount of industrial power – may be something you had never considered: ammonia.
Ammonia Could Be a key “Fuel of the Future”
The experts at Chemical & Engineering News have called ammonia a fuel of the future that may be “a perfect commodity for a future hydrogen economy.”
And one company could emerge as a leader in the rapidly-growing Green Ammonia space…
Offering early exposure and a possible first-mover advantage for investors.
AmmPower is a Canadian company aiming to provide large and medium sized ammonia producing units for industry, manufacturing, heavy equipment operators, maritime and shipping.
In other words, AmmPower is looking to positioning itself as an early leader in supplying Green Ammonia to those industries that need it most.
And make no mistake – the global ammonia industry is at this very moment in the early stages of a potentially massive growth phase thanks to ammonia’s extraordinary potential as a clean energy alternative.
Ammonia May Hold 9 Times the
Energy of Lithium-Ion Batteries
Ammonia, of course, is a compound made of nitrogen and hydrogen – with a chemical formula of NH3.
It is produced naturally in the human body and in nature – in water, soil and air...even in tiny bacteria molecules.
Of course, ammonia’s main use – at least at the present time – is in fertilizer.
But it may be rapidly emerging as a potentially game-changing source of clean energy.
Chemical & Engineering News reports that, “ammonia could come to the (climate change) rescue by capturing, storing, and shipping hydrogen for use in emission-free fuel cells and turbines. Efforts are also underway to combust ammonia directly in power plants and ship engines.”[i]
Ammonia offers a number of critical advantages over other energy sources, such as:
- Ammonia is reported to have 9 times the energy density of lithium-ion batteries...
- Ammonia is less flammable, easier to transport and more cost effective than many other fuels...
- Ammonia is reported to have 1.8 times the energy density of hydrogen...
- And ammonia needs to be stored at -33 Celsius, as compared to the more logistically complex -253 Celsius that is required for hydrogen storage.
The potential for ammonia to play a significant role in the global transition to cleaner energy sources appears to be gaining recognition on a wider scale.
The industry analysts at Fior Markets project that the global ammonia market is expected to continue its growth, reaching a potential USD $81.42 billion by 2025.
In addition, a joint venture in oil-rich Saudi Arabia has announced plans to invest $5 billion into a hydrogen-based ammonia facility powered by renewable energy…
And an Oman-India JV has announced plans for a $2.5 billion green ammonia project in the Duqm SEZ.
Ammonia’s Potential in the Marine Industry
The global marine industry is a large, readily available market that has already begun turning to ammonia to help meet its energy needs.
Ship owners and industry analysts alike say they expect ammonia may play a pivotal role in the de-carbonization of cargo ships, which aim to reduce emissions by 50% from 2008 levels by 2050.
- Over 120 ports are already equipped with ammonia trading facilities...
- MAN Energy and Samsung Heavy Industries are part of an initiative to develop the first ammonia-fueled oil tanker by 2024...
- Viking Energy is poised to become the first vessel propelled by ammonia fuel cells...
- And according to one consultancy report, ammonia could make up 25 percent of the maritime fuel mix by midcentury, with nearly all newly built ships running on ammonia from 2044 onward.
The future of energy for the global shipping industry looks clear – and it could be heavily dependent upon ammonia.
With a commitment to significant reduction in carbon emissions, that means the clock is ticking.
We think ammonia’s potential as both a fuel source and as a way to transport hydrogen means that investors could see significant opportunities in those companies who establish early leadership positions in the ammonia space.
How AmmPower Plans to Develop Effective, Efficient Production of Green Ammonia
So, what steps are they taking that could help establish the company as an early mover in the rapidly-growing ammonia market?
AmmPower is working on the development of a potentially proprietary technology to produce “green ammonia,” a potential carbon-free energy source.
In fact, the company has publicly identified three clear objectives to that end:
- It aims to develop a proprietary process and chemicals for developing green ammonia with minimal by-products and residual contaminants.
- It plans to design and manufacture modular and scalable green ammonia production units, capable of delivering green energy onsite. The units are intended to be a disruptor for the fertilizer industry, by allowing the fertilizer industry to go green, and eliminate CO2 emissions.
- If development of the units is successful, it intends to scale production to readily provide industry operations with ammonia manufacturing units.
The company’s research and development team has already begun its important work toward the development of a proprietary production process for green ammonia.
AmmPower’s R&D team is led by Dr. V.I. Lucky Lakshmanan Ph.D., FCAE., MIMM., FCIM and has an experienced track record.
They are aiming to develop intellectual property and file patents in the areas of Green Ammonia units, retro-fit technology and an optimized chemical production process for green ammonia.
In addition to searching for a manufacturing facility in Michigan…
- Building a team of experts in the industry…
- Planning to develop the Green Ammonia units:
AmmPower Phase I Units (3 Sizes) — 0.1 to 1.0 Tons/Day
- Aiming to retro-fit equipment for industry
- Creating potential custom production plants for Maritime & Port applications.
This facility could offer large manufacturing capabilities and large power capacity for onsite ammonia production and experimentation.
In addition, the facility may be able to physically expand into larger manufacturing space as required by customer demand and scientific success.
The company’s research and development was further enhanced by the recent announcement of an R&D agreement with Process Research Ortech, Inc.
As part of this partnership, AmmPower will work with Ortech to explore possible techniques to improve the efficiency of ammonia synthesis process by incorporating new additives and catalysts to the production process and testing different methodologies to improve ammonia formation conditions.
In doing so, they hope to develop a cleaner and more economically efficient ammonia production process.
With critical research and development work already starting, we think AmmPower is moving quickly to take advantage of the potential for Green Ammonia as a significant clean energy source.
Now here are...
- The global clean energy movement is moving quickly – and shifting toward more efficient sources of energy at the same time...with ammonia emerging as a potentially significant energy source.
- Some reports project the global ammonia market will continue growing rapidly, reaching USD $81.42 billion by 2025.
- We think AmmPower is emerging as an early-mover in the space, working to develop proprietary technology that may produce cleaner ammonia more efficiently.
- The company’s highly accomplished research & development team has an experienced history.
- AmmPower is actively engaged in the process of securing a manufacturing facility in Michigan that offers capacity for onsite manufacturing of the company’s proposed ammonia producing units.
- We think by targeting the marine industry – with over 120 global ports currently accepting ammonia – AmmPower could focus initially on the “low hanging fruit” offered by industries demonstrating the biggest need for cleaner energy sources.
- The company is aiming to develop its modular prototypes by Q4 2021.
In addition to hydrogen, investors should keep on eye on ‘the electrification of everything trend,” as well.
Major automakers haven’t been able to ignore the green energy revolution, either. Ford (NYSE:F) especially. Ford’s most exciting venture into alternative transportation has definitely been in its EV investments, including plans to create an electric cargo van and the launch of a plug-in version of their bestseller F-150 pickup truck. While Tesla’s still-to-be-released Cyber Truck boasts higher specs, the announcement of the iconic F-150 electric model has been very well received, and it has been reflected in Ford’s stock price.
That’s not all Ford is doing, however. It’s also on the cusp of innovation on hydrogen, as well. In fact, it has even unveiled the world’s first-ever fuel cell hybrid plugin electric vehicle, the Ford Edge HySeries.
“This vehicle offers Ford the ultimate in flexibility in researching advanced propulsion technology,” said Gerhard Schmidt, vice president of research and advanced engineering for Ford Motor Company. “We could take the fuel cell power system out and replace it with a down-sized diesel, gasoline engine or any other powertrain connected to a small electric generator to make electricity like the fuel cell does now.”
Honda Motors (NYSE:HMC) is another car company that’s well recognized across the globe. It was founded by Soichiro Honda in 1948. They are an international corporation with their headquarters located in Tokyo, Japan. Honda Motors has been ranked as one of the world's most valuable automobile manufacturers since 2011 and has produced more than 25 million cars worldwide. Today Honda manufactures products including automobiles, motorcycles, power equipment (engines), robots, and even lawnmowers!
Honda Motor Company is known for being environmentally friendly and they offer many different types of cars to suit consumers’ needs such as fuel-efficient commuter vehicles or sporty coupes.
Though Honda doesn’t capture as much of the fuel cell market as Hyundai or Toyota, it’s still worth keeping an eye on. As the third-largest producer of hydrogen vehicles, it stands to win big as even more money flows into this exciting new industry. Especially with President Joe Biden’s up-coming multi-trillion-dollar green energy push.
General Motors (NYSE:GM) is one of the world's most well-recognized and popular auto manufacturers, and they are now branching out into manufacturing electric cars. Though General Motors has been around for a long time, this new venture is an exciting step in their company's history. They are working hard to create cars that are environmentally friendly and will offer drivers a better overall driving experience.
General Motors is set to invest $27 billion in EVs over the next five years. It used the Superbowl for its breakout. Now, it’s mainstreaming them as the all-American car choice. And that’s just the beginning.
Late last year, General Motors also unveiled that one of its subsidiaries, Cruise, is ready to roll out driverless electric vehicles in Los Angeles. And while they’re not the first to receive such approval, it’s still huge news for the legacy giant. It also shows shareholders that its still relevant after all these years.
At this point, the demand for electric vehicles has been ramping up steadily for years. But as we’re approaching the tipping point, we've seen a major problem take shape. And that's where Chargepoint (NYSE:CHPT) comes in, one of the largest charging station networks in the country.
This leading EV infrastructure player went public just a few months ago through one of the market's hottest trends. That made them the first EV charging stock to have gone public via a reverse merger with a special purpose acquisition company, or SPAC. When it comes to the supercharged Level 2 EV charging stations, ChargePoint is the clear leader in the industry.
While Level 1 stations allow you to charge a Mercedes B Class 250e in around 20 hours...Level 2 chargers cut that down to just 3 hours to fully charge that same vehicle.
That's a massive difference for people worried about having to spend nearly a day charging their vehicles before getting back on the road. And ChargePoint has a whopping 73% of the market share of networked Level 2 charging stations.
The boom in electric vehicle success has also fueled a boom in other EV-related companies. Blink (NASDAQ:BLNK), for example, an electric vehicle charging company, has risen by over 300% in just a few months, and the sky is the limit for this up-and-comer. A wave of new deals, including a collaboration with EnerSys and another with Envoy Technologies to deploy electric vehicles and charging stations adds further support
Blink Charging really is a mature company, having been around since 1998. Its unique proposition is that many of the company's charging stations are found in practical locations, such as airports and hotels, making it convenient for drivers to charge up while waiting on flights or in their rooms.
Blink has also been particularly active inking new deals, including 26 dual-port Level 2 IQ 200 EV charging stations at key Burger King locations across the Northeast; 20 Blink-owned IQ 200 electric vehicle charging services with Illinois' Blessing Health, and an exclusive seven-year agreement with Lehigh Valley Health Network for the former to own and operate charging stations across the health network's extensive portfolio of locations.
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.
Another way to get some indirect exposure to the exploding alternative transportation industries is through AutoCanada (TSX:ACQ), a company that operates auto-dealerships through Canada. The company carries a wide variety of new and used vehicles and has all types of financing options available to fit the needs of any consumer. While sales have slumped this year due to the COVID-19 pandemic, AutoCanada will likely see a rebound as both buying power and the demand for electric vehicles increases. This runup could even be accelerated as exciting new cars like Ford’s hybrid fuel cell electric vehicle or Toyota’s new line of EVs hit the market.
GreenPower Motor Company (TSX:GPV) is an exciting company that produces larger-scale electric transportation. Right now, it is primarily focused on the North American market, but the sky is the limit as the pressure to go green grows. GreenPower has been on the frontlines of the electric movement, manufacturing affordable battery-electric busses and trucks for over ten years. From school busses to long-distance public transit, GreenPower’s impact on the sector can’t be ignored.
GreenPower Motor has seen its share price soar from $2.03 to a yearly high of $28.45. That means investors have seen 1300% gains since the beginning of the year. And with this red-hot sector only gaining traction, GreenPower has a lot of room to run.
NFI Group (TSX:NFI) is another one of Canada’s most exciting companies in the electric vehicle space. It produces 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.
Recently, NFI has seen an uptick in insider stock purchases which is often a sign that the board and management strongly believe in the future of the company. 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.
By. Rick Sidthorp
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 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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