Investing in companies that are dedicated to tackling climate change and reducing carbon emissions has become increasingly popular among investors. Carbon capture and climatech companies are among the most promising investment areas, with the potential to address the challenges of climate change while also generating profits. Learn more about recent and upcoming carbon capture and climatech IPOs, as well as their business models, growth potential, and investment risks.
Climatechs can be an opportunity to invest in useful solutions to the future
Investing in the stock market has always been a great way to build wealth. However, investors are now more interested in funding businesses that have a positive impact on the environment.
This trend has led to the rise of climatech companies which focus on developing technologies that reduce greenhouse gas emissions. This is important due to the rising concerns about the impact of climate change caused by such emissions.
Let’s review some of the upcoming climatech IPOs that can be good investments opportunities.
– Carbon Clean Solutions
Carbon Clean Solutions is a carbon capture company that has developed an innovative technology to remove carbon dioxide (CO2) from industrial emissions.
The company has recently announced plans to go public through an IPO, which is expected to bring in more than $100 million in funding. Additionally, the company has already secured partnerships with major players in the energy and industrial sectors, such as Tata, Mitsubishi Heavy Industries, and Veolia.
Carbon Clean Solutions operates on a “pay-per-ton” model where clients pay the company to capture and store their CO2 emissions. The company’s technology is low-cost and can be applied to a wide range of industries, including cement, steel, and power plants. Carbon Clean Solutions aims to become a leading player in the carbon capture market and is projected to have a CAGR of 38% between 2020 and 2027.
– Carbon Engineering
Vancouver-based Carbon Engineering is a leading company in the field of Direct Air Capture (DAC) technology. The company has developed a technology to extract CO2 directly from the air and convert it into liquid carbon-neutral fuels. Carbon Engineering has already raised more than $200 million in funding from investors, including Bill Gates and Chevron Technology Ventures.
The company is currently planning to go public through a SPAC merger with a valuation of $1.4 billion. Carbon Engineering aims to scale up its technology to commercialize its DAC technology and produce cost-effective carbon-neutral fuels. Its liquid fuels are expected to be competitive with conventional fuels and can be used in existing engines and infrastructure. The company’s long-term growth potential is promising as the world shifts towards decarbonization.
– Climeworks
Climeworks is a Swiss company that has developed technology for capturing CO2 from the air using modular equipment. The company is planning an IPO on the SIX Swiss Exchange in 2021, which is expected to raise more than CHF 100 million ($109 million).
The company’s technology is already in use in several projects worldwide and has attracted partnerships with companies such as Audi, Microsoft, and Swiss Re.
Climeworks operates on a subscription-based model, where clients pay for a certain amount of captured CO2, which can be used for several applications such as renewable fuel production, food and beverage, and agriculture. The company’s technology is scalable and has the potential to capture up to 1% of global CO2 emissions. Climeworks aims to become the world leader in capturing CO2 from the air and has impressive growth projections.
– ChargePoint
Electric vehicles are key to reducing carbon emissions, and ChargePoint is a leading company in the charge point infrastructure for EVs. The company is planning to go public through a SPAC merger with Switchback Energy Acquisition Corp with a valuation of $2.4 billion. ChargePoint currently has more than 4,000 customers, including major automakers, parking operators, and municipalities, and operates in more than 50 countries.
ChargePoint aims to expand its charging infrastructure to meet the growing demand for EVs and has a sustainable business model with both subscription-based and transaction-based revenue streams.
The company has an impressive track record of revenue growth and is projected to have a CAGR of 58% between 2019 and 2025.
– Carbon Direct
Carbon Direct is a climatech company focused on providing capital to projects that reduce greenhouse gas emissions. It havs plans to go public through a merger with special purpose acquisition company (SPAC) Carbon Acquisition Corporation.
The company’s portfolio includes forestry, high-impact renewable energy, and low-carbon transportation projects. Carbon Direct focuses on projects that contribute positively to climate change and generate financial returns for investors. Investors should note that companies’ financial performances are contingent on external factors such as project success and government regulation.
– Greenlane Renewables
Greenlane Renewables is a Canadian biogas company that offers technology solutions for converting organic waste into renewable natural gas. Greenlane’s business model aims to accelerate the transition to a low-carbon economy while creating sustainable development opportunities.
The company went public on the Toronto Venture Exchange and raised $10 million in 2019, followed by their IPO on the NASDAQ in January 2021, raising $60 million. Greenlane Renewables’ revenue has been growing steadily since 2016, with a compound annual growth of 60%. Investors should note that the renewable energy sector’s growth potential is affected by regulatory policies and power grid infrastructure.
– Enwave Energy Corporation
Enwave Energy Corporation is a Toronto-based district energy company that provides low-carbon heating and cooling solutions. The company’s technology is used in commercial buildings, hospitals, and universities across Canada. In June 2021, Enwave Energy announced plans and filed a preliminary prospectus for an IPO for its subsidiary, Enwave North America.
The offering is expected to be completed before the end of September 2021. Enwave’s business model focuses on providing cost-effective, sustainable energy solutions to its customers. However, investors should note that the renewable energy sector is competitive, and external factors such as energy pricing may affect the company’s revenue.
Investing in climatech companies holds potential to generate profits and guarantee the future of the planet
In conclusion, investing in carbon capture and climatech companies holds tremendous potential for both generating profits and accelerating the transition towards a decarbonized economy. Companies such as the ones mentioned above have differentiated themselves by offering innovative, scalable, and sustainable solutions to address climate change.
As with all investments, it is imperative to conduct due diligence and weigh all investment risks before making any decisions. However, these companies demonstrate tremendous growth potential and have garnered impressive partnerships and funding to support their business models.
Investors interested in making an impact on the climate crisis while generating returns should definitely consider investing in these companies.
