The carbon capture and sequestration market is expected to have a steady growth trajectory, which will be a boon for carbon capture stocks. This growth is being spurred by the enhanced efforts being made by the governments and the corporations in cutting down on CO2 emissions with a view of hitting the net-zero targets.
New innovations in the carbon capture technologies are improving the ways of capturing and storing carbon dioxide. Better technologies like Direct Air Capture, which captures CO2 from the atmosphere, are being seen more frequently.
These advancements are improving the efficiency of carbon capture, which, in turn, is increasing the interest in this area and the funding being put into it.
Given the urgency of the climate crisis, we’re going to see an increase in investor appetite for carbon capture stocks moving forward. So here are three companies for investors to consider adding to their portfolios.
ExxonMobil (XOM)
ExxonMobil (NYSE:XOM) has developed an elaborate plan to tackle carbon emissions and facilitate the shift towards the usage of cleaner energy through a number of CCS projects.
XOM’s hydrogen production plant is one of the cornerstones of ExxonMobil’s CCS projects. This initiative will generate as much as 1 billion cubic feet of “blue” hydrogen every day, alongside the mechanisms for storing up to 10 million metric tons of CO2 a year.
This project is expected to cut the complex’s CO2 emissions by at least 30%, and therefore contribute to ExxonMobil’s objective of delivering net-zero greenhouse gas emissions from operated assets by 2050.
ExxonMobil annually captures about 9 million metric tons of CO2 and has captured over 120 million metric tons capturing a market share of about 40% of all the human-produced CO2 annually.
This positions XOM as one of those carbon capture stocks making a huge pivot in their operations from the traditional oil industry.
Occidental Petroleum (OXY)
Another company that has taken part in CCS projects with the aim of cutting its carbon footprint is Occidental Petroleum (NYSE:OXY). The company’s subsidiary, 1PointFive, is instrumental in this regard as it concentrates on the scaling up of DAC technologies.
The STRATOS DAC facility in Texas is one of the key projects under 1PointFive. This is a world-class plant with the capacity of capturing 500,000 metric tons of CO2 every year, thus, offering a long term solution to curbing carbon emissions.
Collaborations with companies like AT&T (NYSE:T) and Microsoft (NASDAQ:MSFT) are reportedly in place as these organizations have invested in the purchase of carbon removal credits.
OXY highlights how organizations are able to leverage carbon capture for shareholders and not purely an expectation of them or an altruistic exercise, offering real incentives to clean up one’s act. This makes it one of those carbon capture stocks to buy.
Bloom Energy (BE)
Bloom Energy (NYSE:BE) leverages its solid-oxide fuel cell platform for carbon capture. Another famous project of Bloom Energy is a partnership with Shell (NYSE:SHEL) to build sustainable hydrogen energy solutions.
The objective of this partnership is to apply Bloom’s solid oxide electrolyzer technology to generate clean hydrogen that can be utilized in the decarbonization of sectors which are hard to electrify.
This partnership is aimed at the development of modular technologies that will be used to replace the current hydrogen production from fossil fuels. This will help in minimizing the emission of greenhouse gasses.
Also, Bloom Energy has been in the process of incorporating its fuel cell technology with carbon capture systems.
BE stock’s presence in the industry is a striking contrast to XOM. It underlines how innovative startups can help the world move towards a greener future. This means that BE is one of those carbon capture stocks to consider along with the more established names in the industry.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
