One staple that many ESG investors include in their investment portfolio is carbon capture stocks.
Investing in these companies means you’re investing in the future of clean energy; these aren’t the companies that pursue greenwashing to trick investors into supporting them.
Carbon capture technology is helping to ensure the well-being of the Earth and our environment as a whole.
There are many excellent carbon capture stocks on the market today you can consider.
In this post, I’ll explore some of the best carbon capture stocks, what carbon capture and storage is, and much more. Let’s get started!
What Is Carbon Capture?
After years of technology development, carbon capture is now being used on a much wider scale.
Carbon capture is when carbon is pulled from the atmosphere and stored in an underground facility.
The captured carbon is used by many industries, including the agriculture, transportation, energy, and manufacturing industries.
To capture carbon, there needs to be an efficient and effective way to store it.
The extraction process itself is an expensive and time-consuming endeavor, but it’s one that’s necessary given the world’s current demand for cleaner energy.
The ongoing global warming crisis has made the world desperate for new sources of renewable energy and ways to reduce carbon dioxide emissions, and the companies that can fill this demand stand to yield huge profits.
There are already at least 21 large-scale carbon capture projects in the works, and more are on the way making carbon capture investments worthwhile.
11 Best Carbon Capture Stocks
As the need for carbon capture grows over the next few decades, there will be a wide-scale impact on the industry that can provide tremendous opportunity for investors.
If you want to see coal fired power plants phased out and solutions that actually reduce carbon emissions supported, investing in the carbon capture market is a wise move.
Here are the best carbon capture stocks that you should consider for your portfolio:
- NRG Energy
- Aker Carbon Capture
- Exxon Mobil
- FuelCell Energy
- Delta CleanTech
- KraneShares Global Carbon Strategy
- Bloom Energy Corp
All of these companies are working on advancing the carbon capture process, and many are working on improving both carbon capture and storage.
Occidental, or Occidental Petroleum Company, is the seventh largest oil and gas company in the US.
Based in Texas, Occidental is not a pure carbon capture company, but they’ve been researching and developing carbon capture methods to make their oil refining process greener, and they’re definitely a leader when it comes to capturing carbon.
With a sizable market cap, Occidental is a company many have decided to put their money behind, in large part because of their work with carbon capture and their commitment to pursuing a reduced-carbon future.
Occidental has a great track record when it comes to its environment protection initiatives, which is in part why it’s an excellent choice for those who want to invest in carbon capture stocks.
Throughout 2022, the price of Occidental’s stock has been on the rise. However, this doesn’t mean it’s too late for you to invest.
This is one of the best carbon capture stocks, and even its current price doesn’t reflect how much it could benefit from being one of the leading carbon capture companies.
Their carbon capture subsidiary, Oxy Low Carbon Ventures, will only increase in value as the fight against global warming ramps up and carbon engineering accelerates.
Many investors choose carbon capture stocks that are backed by overseas companies. If you fall under this umbrella, you may want to look at Equinor.
This Norwegian company operates in about thirty countries currently, and it’s the second-largest natural gas producer in Europe. It’s also one of the oldest carbon capture companies in the world founded in 1972.
Because of Norway’s location, the country is more susceptible to the negative effects of climate change. Therefore, tackling carbon emissions is a big deal in Norway, and companies like Equinor are working every day to ensure a greener tomorrow. In their view, it’s possible to satisfy the world’s energy demands without releasing an incalculable amount of carbon emissions.
This company’s stock has performed well over the years. In fact, it’s been at a three-year high for awhile now, in large part because of the natural gas shortage Europe is facing. It’s no secret that as the world slowly adopts more forms of renewable energy, Equinor will be one of the companies leading the way.
So if investing in a carbon capture leader is what you’re after, consider purchasing some shares of Equinor.
3. NRG Energy
NRG Energy is one of the most popular choices when it comes to carbon capture stocks for a few reasons. This is largely because many investors have seen a 216% return since investing 5 years ago. Who wouldn’t love those numbers?
This company works with electric vehicles and residential solar systems, so there’s massive potential for growth over the next few years.
But one of the risks associated with investing in this company has to do with its main area of operation.
They mostly operate in Texas, and they’ve gone bankrupt before because of land-related issues, so there’s always potential that this could happen again.
Still, NRG looks ready to leap into the future with better carbon engineering. If you don’t mind elevated risk, this could be an excellent investment opportunity for you.
Schlumberger Limited is another ideal choice for those looking to invest in the best carbon capture stocks. They’re not an oil and gas producer, but instead they work with producers to improve their operations.
They’ve been around for more than 80 years, and their current market capitalization shows they’re not going anywhere any time soon.
They specialize in mapping, measuring, and modeling underground rock formations, and many of the companies mentioned so far rely on their findings.
The company has been creating carbon capture projects since the mid-2000s, and they provide carbonization tools and training to clients that want to aid in the transition to green energy. This carbon capture company has been at the forefront of the push for cleaner oil and gas production, which is a big reason why so many have chosen to invest in them.
Schlumberger has also partnered with LafargeHolcim, Chevron, and Microsoft to create carbon capture and storage solutions around the world. Moreover, they have invested in tons of renewable energy projects over the years and will continue to do so as they advance.
If you want to invest in a well-established company that’s forwarding carbon capture, Schlumberger is the way to go. They are true leaders in the space and it’s likely they’ll grow over the next few years.
5. Aker Carbon Capture
Aker Carbon Capture is an excellent company for investors because it is purely a carbon capture company; it’s not one of those companies that works with fossil fuels and attempts to improve carbon capture on the side.
Their chief mission is taking carbon out of the atmosphere and storing it so it can be used for a purpose that helps the environment later on.
The company has been researching and developing carbon capture strategies for more than 27 years. They are part of the Norwegian Aker Group, a group that focuses on capturing, transporting, utilizing, and storing carbon dioxide that comes from the atmosphere. They are passionate about what they do with carbon dioxide, and that’s something that attracts a lot of investors.
If you invest in Aker, you’re investing in a company that’s deeply invested in the fight against radical climate change. And since they focus on just carbon capture, they’re considered one of the leading carbon capture technology companies.
But since this company really only focuses on one line of business, it’s stock is more volatile than those which are backed by traditional fossil fuel corporations.
Still, investing in a company that’s solely devoted to carbon capture is exciting, and doing so can yield high returns. So if you’re looking for a profitable business and you’re a fan of eco-friendly business models, investing in Aker may be for you.
6. Exxon Mobil
You probably know Exxon Mobil as a gas company, and it’s true that most of their operations center around oil and gas extraction. However, they are also one of the leading companies researching and improving carbon capture. In fact, they are just as much a part of the environmental movement as companies that utilize only greener technologies. That’s right—even Big Oil plays a role in making the world a better place.
One of the best things about Exxon is that it’s a massive company. In fact, recently it’s been valued at close to $259 billion. They can invest tons in research and development to improve carbon capture technologies. Some may not like what they do, but Exxon could very well take the carbon capture space to the next level and reduce carbon emissions around the world.
Their stock has seen a 47% increase since 2022 began, so it’s clear many people like what they have to offer. However, since Exxon is at a multi-year high, it’s best to wait for a price drop before picking up some shares.
7. FuelCell Energy
If penny stocks are your investment vehicle of choice, there are some penny carbon capture stocks, and FuelCell Energy is one of them.
Of course investing in penny stocks entails more risk, so these investments are really for those who know how to manage risk.
FuelCell Energy is a more volatile stock, and the reason they didn’t go bankrupt a few years ago is because they made a deal with Exxon.
If you can’t afford high risk investments, don’t invest in FuelCell Energy. However, if you can handle the risk, you could yield a high return by investing in this company. And with batteries in high demand now more than ever, there’s never been a better time to invest in fuel cell technology.
FuelCell energy is working to improve energy storage, carbon capture, and other forms of renewable energy, and if all goes well for FuelCell Energy in the coming years, they’re sure to be a leader in the battery space.
8. Delta CleanTech
Delta CleanTech has been around since the early 2000s, and since the beginning they’ve been researching and developing carbon capture technology.
This is a Canadian company, and it’s one of the oldest in terms of companies that extract carbon from the atmosphere and store it for later use.
This company has locations around the world, and it works with multiple companies to provide cutting-edge carbon solutions. This is one of the most promising companies for those who are looking to invest in carbon capture because it has been around for some time.
There are several reasons why Delta CleanTech is a safe option for value investors and retail investors alike.
They have been around for a long time, the company is very diverse, and they’ve been leaders in the carbon capture space longer than their main competitors.
Delta CleanTech is one of the biggest players in this industry, and it will continue to grow in the future. Investors who want a safer option should consider Delta CleanTech for their portfolios.
9. KraneShares Global Carbon Strategy
KraneShares Global Carbon Strategy is another large player in the carbon capture space. They provide a way to invest in the carbon capture space without selecting individual stocks. They offer carbon capture exchange traded funds (ETFs), and these are essentially baskets of stocks for those who want to invest broadly in the space.
Those who invested in KraneShares when it first went public have seen an excellent rise in their stocks. The past five years have brought a 158% rise in stock value, which is an incredible performance when compared to its peers.
However, you shouldn’t count on KraneShares for any passive income through dividends. That being said, they are expecting to have excellent growth in the coming years, so lack of dividend income is likely to be ignored because of rising share prices.
They are committed to carbon reduction over the long term, and you should consider investing in them if you don’t want the risks associated with relying on just a few carbon capture stocks.
10. Bloom Energy Corp
Bloom Energy Corporation is a company based in California that offers alternative energy solutions to a range of clients, and they provide carbon capture services because they know many companies need to be carbon neutral.
This company is unique in that it makes use of biogas to separate carbon. This process doesn’t emit any carbon, and the company’s efforts to have 100% carbon-free operations is one reason why they’re preferred by those who are looking for carbon capture stocks.
Despite their success in the carbon capture space, it’s critical to note that this is not their entire focus.
Bloom Energy Corp has eight divisions, so if you want to invest in a purely carbon capture business, you should put your capital elsewhere.
Still, Bloom Energy Corp is an excellent choice if you want to invest in a carbon capture company that cares about the environment. They may not be the undisputed best carbon capture business, but this carbon capture stock is one worth checking out for several reasons. And as more businesses become carbon-neutral, BEC’s services will only become more important.
Chevron is a massive oil and energy conglomerate that is well-known by most investors. They are well-known for their work with oil and gas, but they have recently found their way into the carbon capture space. Chevron made a deal with Blue Planet to develop their carbon capture tech. They are committed to lowering carbon emissions for the future, and their carbon capture stock is one you’d be able to hold for a long time.
Chevron and Blue Planet are working together on several projects. Mainly, they’re looking for ways to get involved in the carbon capture market, a space where not all traditional oil companies can find a niche right now.
As one of the most promising companies on the market, and with global operations and leading engineering, Chevron is sure to have an impact on the future of carbon capture and storage.
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Final Thoughts on the Best Carbon Capture Stocks
Carbon capture is a complex process, and the energy generated from this process is becoming more and more vital for a range of industries.
Most businesses operating understand that fuel cells, hydrogen production, and ethanol purification are the clean energy sources of the future, but carbon capture is a solution we can take advantage of today!
If you want to fuel this transformation with your money, consider investing in any of these companies.
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