Mar 08, 2022 (WallStreetPR via Comtex) -- As commodity prices skyrocket higher following Russia's invasion of Ukraine, attention in the markets is turning toward sustainability plays. The ideas are entwined.
For example, one of the main hurdles to the development and maturation of the solar energy industry is the cost-effectiveness of using solar energy. This has become less important as the industry has scaled up over recent years. But it's hardly irrelevant now, and will continue to be an issue over coming years.
This is true even as the cost per kilowatt hour has become cheaper for alternative energies like wind, solar and other renewables than for hydrocarbon-based energies like oil and natural gas.
Because transitioning to something like solar power also implies an upfront fixed-cost installation and conversion investment that has to be figured in over any given 5-year budget plan. With that extra factor, solar and wind energy have remained more expensive than just keeping the fossil fuels flowing during recent years with oil pricing at an average of $60/bbl.
But that all changes with Oil trading well above $100/bbl. The math changes, and we can expect the decisions by major energy consumers to change as well.
This is not just an argument for solar. The same dynamic is happening across the economy. Lumber, wheat, copper, and other commodities have blasted off with Oil over recent weeks. And in every such case, the argument for environmentally sustainable technologies is bolstered. It suddenly makes much more sense to shift to a sustainability paradigm and break the addiction to scarce commodities.
Given that backdrop, we take a look below at a handful of the most interesting stocks in the green technology space right now.
Ballard Power Systems Inc. /zigman2/quotes/205070617/composite BLDP +1.75% bills itself as a company that engages in the design, development, manufacture, sale, and service of fuel cell products for a variety of applications.
BLDP focuses on power product markets of heavy duty motive, portable power, material handling, and backup power, as well as the delivery of technology solutions.
Ballard Power Systems Inc. /zigman2/quotes/205070617/composite BLDP +1.75% recently announced with ABB (six swiss ex:ABBN) - a leading global technology company that energizes the transformation of society and industry to achieve a more productive, sustainable future - that they have received a groundbreaking approval in principle ("AiP") from leading classification society DNV for a jointly developed fuel cell concept capable of generating 3 megawatts, or 4,000 HP, of electrical power. DNV is an international accredited registrar and classification society headquartered in Høvik, Norway.
"ABB's industry-leading experience in marine solutions and Ballard's expertise in development and deployment of megawatt-scale fuel cell systems for land-based use has proven to be the right combination, enabling us to take the next step in our joint efforts to make this technology available for larger vessels," said Jesper Themsen, President and CEO of Ballard Power Systems Europe A/S. "Securing an AiP offers a signpost to the maritime industry regarding the potential of this truly transformative concept."
Traders will note 5% piled on for shareholders of the stock during the trailing month, a bounce that has taken root amid largely bearish action over the larger time frame. The situation may be worth watching. BLDP has a track record that includes a number of dramatic bounces. In addition, the listing has registered increased average transaction volume recently, with the past month seeing 25% above the average volume levels in play in this stock over the longer term.
Ballard Power Systems Inc. /zigman2/quotes/205070617/composite BLDP +1.75% has a significant war chest ($1.6B) of cash on the books, which is balanced by about $80.1M in total current liabilities. One should also note that debt has been growing over recent quarters. BLDP is pulling in trailing 12-month revenues of $122M. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling at -6.9%.
Eco Innovation Group /zigman2/quotes/209717851/delayed ECOX +7.69% is a smaller name in the space, but the company appears to be ratcheting up commercial operations over recent months and could be on the verge of a number of key catalysts.
The company's model is driven by nurturing the work of top inventors in the US and Canada, helping to bring their best green-tech ideas to life and then signing exclusive licensing deals to commercialize the results. But the company has also entered the green construction space and has started to put together lucrative deals to renovate existing facilities for 21st century life.