InvestingStock Market

Best 5 Carbon Capture Stocks to Invest in 2022

5 Mins read
  • Is it worth investing in carbon capture stocks?
  • Which are the top five best carbon capture stocks to invest in in 2022?
  • What potential do these stocks have for the upcoming years?

We all favor a worldwide shift toward clean, renewable energy when combating climate change and global warming. We also support the preservation of rainforests and the planting of more trees. However, for climate change and global warming to be effectively addressed and stopped, these solutions will take many years, if not decades, to reach their full potential.

To avoid changing direction in the future, we must stop emitting carbon dioxide into the atmosphere now, rather than wait decades. That being the case, what is the solution? Businesses engaged in carbon capture are leading the struggle against climate change and global climate warming.

Their goal is to develop innovative, affordable carbon capture technology that will help us stop the emission of carbon dioxide and even remove it from our bodies. CCUS technology will be examined today, and seven of the best carbon capture companies helping us achieve our climate goals. 

Then, let us take you through the top five carbon capture stocks to invest in 2022.

KraneShares Global Carbon Strategy ETF (KRBN)

KRBN gives broad exposure to the performance of compliance market carbon credits. As a result, they have become one of the most popular ways for regular investors and corporations to engage in the carbon markets.

KRBN allows the average investor to receive exposure to carbon pricing by matching the price performance of these compliance market carbon credits via its holdings without buying complicated and risky futures. Investment in KRBN would have more than doubled by year’s end, following the price performance of EU and California carbon credits.

KRBN should be on your radar if you predict that carbon allowance costs will continue to grow in 2022.

KRBN price chart

Why does it have the potential to grow?

KRBN may be a wise long-term investment since most government regulatory actions aim to keep carbon prices as high as possible to reduce emissions. However, carbon credit costs should also rise in tandem with inflation in the event of a shock. 

For starters, KRBN has a low correlation to other asset classes (below 0.40 for all asset classes), making it an intelligent method to diversify a portfolio. The reduced cost ratio for alternative investments, at 78 basis points, makes it even better.

How much would you earn if you invested in KRBN 1 year ago?

On 15 March 2021, this stock traded at $29.18 a share. The price has risen to $45.92 a year later. Investing $1,000 in the previous year would have yielded a profit of around $573.

Occidental Petroleum Corporation (OXY)

Occidental Petroleum Corp. is an oil and gas exploration and production firm. The company’s three segments are oil and gas, chemical, midstream, and marketing. The oil and gas sector includes exploring, developing, and producing oil, condensate, natural gas liquids, and natural gas. 

Products like basic chemicals and vinyl may be found in the chemicals area of the store. The company was founded in 1920 and is headquartered in Houston, Texas.

OXY price chart
OXY price chart

Why does it have the potential to grow?

Occidental Petroleum’s share price dropped by 58% in 2020, to as low as $9 per share towards the end of the year. However, following the increase in oil prices in 2021, its losses were recouped, and its shares rose by 68 percent. In addition, international benchmark Brent crude oil prices and US oil futures West Texas Intermediate soared more than 50% last year due to increased demand and sluggish supply restoration. In early January, the stock was trading at more than $31 a share, and it continued to rise until 2022. We may infer from these data that it has a lot of space to grow.

How much would you earn if you invested in OXY 1 year ago?

On 15 March 2021, this stock traded at $29.20 a share. The price has risen to $45.92 a year later. Investing $1,000 in the previous year would have yielded a profit of around $897.

Brookfield Renewable Partners (BEP)

If you’re still not sold on carbon credits or don’t want to take on too much risk with your portfolio, there are more conservative ways to participate in the green investment boom. 

BEP, a publicly-traded company, is a good illustration of this. It is one of the world’s leading renewable energy companies. More than a dozen countries and four continents are represented by BEP’s almost $60 billion in power assets distributed among hydro, wind, and solar projects.

BEP price chart
BEP price chart

Why does it have the potential to grow?

Brookfield has reaped the benefits of the inevitable transition to renewable energy for many years. As the pace of change quickens, it’s in a great position to benefit even more. Profits are expected to expand at a double-digit rate over the next several years because of the company’s increasing availability of growth opportunities.

How much would you earn if you invested in BEP 1 year ago?

On 15 March 2021, this stock traded at $39.93 a share. The price has risen to $40.29 a year later. Investing $1,000 in the previous year would have yielded a profit of around $9.01.

Aker Carbon Capture ASA (AKCCF)

As a manufacturer of carbon capture facilities, Aker Carbon Capture is situated in Norway. For Aker, industrial processes are the primary focus rather than carbon capture from the atmosphere. Additionally, it targets polluting enterprises instead of individual citizens.

In the cement sector, Aker offers carbon capture products. Aker has made its technology commercially accessible since 2005. Carbon capture uses water and solvents to remove carbon dioxide from the atmosphere. Gas, coal, cement, and refineries are just a few of the places where they may be put to good use, reducing emissions.

AKCCF price chart
AKCCF price chart

Why does it have the potential to grow?

AKCCF makes a difference in the fight against global warming. Investment opportunities abound in them. Real-world prices for both the regulated and voluntary markets for AKCCF have been increasing. The supply of AKCCF in regulated markets is reduced each year to motivate companies to decrease their emissions. This guarantee has been made by the European Union, California, and China. 

The AKCCF is a vital aspect of the process. Microsoft and Amazon are driving up the price of offsets in the voluntary market.

How much would you earn if you invested in AKCCF 1 year ago?

On 15 March 2021, this stock traded at $1.6 a share. The price has risen to $2.16 a year later. Investing $1,000 in the previous year would have yielded a profit of around $1,350.

Carbon Streaming Corp (OFSTF)

A new approach to carbon capture is used by Carbon Streaming Corp (OFSTF). The company funds carbon offset projects all around the world. Tree planting is a common element in these initiatives since trees are an excellent source of carbon sequestration. In addition, it is possible to sell carbon credits issued to project owners. Despite some skepticism about the benefits of tree planting, the market for voluntary carbon credits is rapidly expanding.

Those firms who have agreed to “offset” their emissions to attain net-zero emissions may be offered Carbon Streaming’s carbon credits. Several companies have pledged to be carbon neutral or even carbon negative by 2030 or 2050, such as Microsoft.

OFSTF price chart
OFSTF price chart

Why does it have the potential to grow?

Energy and mining companies have already used the streaming idea in carbon credits, which Carbon Streaming Corp hopes to extend to carbon credits. However, they’re more concerned about streaming than anything else. A carbon offset project receives money in advance from CSC and a certain percentage of the project’s carbon credits. In addition to actively assisting projects, CSC may participate in the compliance and voluntary credit markets. Moreover, CSC can profit from the carbon initiative without broadcasting it to its customers. So there’s plenty of opportunity for growth in the years to come.

How much would you earn if you invested in OFSTF 1 year ago?

On 15 March 2021, this stock traded at $0.6 a share. The price has risen to $7.16 a year later. Investing $1,000 in the previous year would have yielded a profit of around $10,993.

Final thoughts

Finally, several outstanding carbon capture companies are working hard to prevent current carbon emissions from entering the environment while collecting unavoidable and historic carbon from the atmosphere.

Renewable energy technologies are the best way to eliminate carbon emissions, but this will take decades to complete. Our battle against global warming is a matter of days, not decades.

Carbon capture and storage is a viable and necessary alternative as we prepare to shift to renewables and expand those operations to meet an ever-increasing global need for electricity.

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