The energy sector fuels the national and global economy. Quite understandably, rising prices of oil and gas have been fueling bullish momentum in the energy sector of late. However, recent volatile moves in the underlying commodity prices have also led to some wonky stock charts in this sector.
That said, for those seeking exposure to more environmentally conscious areas of the energy market, there are places to look. Various green energy companies have sprouted up, providing impressive growth potential over the long term.
As the world shifts toward green energy, such stocks may remain in focus for some time. Here are two I’ve got on my watch list right now.
Ballard Power
Ballard Power Systems (TSX: BLDP) is a key player in the race to develop hydrogen fuel cells and associated technologies. This company’s zero-emission PEM fuel cells can be used for electrification of transportation, such as buses, commercial vehicles, railroads, marine vessels, and stationary electricity.
Ballard’s proton exchange membrane (PEM) fuel cells have now fueled fuel cell electric vehicles, or FCEVs, in commercial heavy- and medium-duty Motiv vehicles for 150 million kilometres. This roughly equates to 3,700 trips around the planet. In order to attain this milestone, more than 3,800 buses and vehicles were powered by Ballard fuel cells, offering zero-emission mobility options in about 15 different nations.
Ballard also joined the United Nations Global Compact initiative to aid voluntarily in its Sustainable Development Goals.
For those thinking long term and who think hydrogen power could have an important role to play in long-term sustainability, this is a stock to watch at current levels.
Brookfield Renewable
Brookfield Renewable (TSX: BEP.UN) had one of its strongest yearly performances in 2022, despite the diversities that it had to face due to various macroeconomic factors. The company is planning to launch more initiatives in 2023 and contribute towards sustainable planet goals.
The company has recently announced its partnership with Shoals Technologies Group, Inc. to launch a “Charging-as-a-Service” solution. One of the major challenges that automobile businesses face while shifting towards utilizing carbon-less resources is the lack of EV charging stations. It requires huge capital investment. The company aims to contribute towards this cause.
Notably, one of the reasons Brookfield Renewable also makes my list is the company’s strong dividend yield. Currently, BEP stock yields around 4.3%, which adds to this stock’s meaningful total return over the long term. Thus, this is far from a speculative growth name in the energy sector right now, thought I do like the company’s growth profile as well.
Conclusion
The gradual global shift towards sustainability is providing an increasingly compelling investment argument for green energy stocks. These are two of the best options Canada has to offer, in this regard.
For those with a long-term investing time horizon, I’d recommend taking a look at these companies, particularly on any dips moving forward.
