Carbon Capture Stocks: Guide to 2023 Carbon Markets (CCS Investments) (2024)

The rising interest in carbon capture, utilization, and storage (CCUS) technologies, has developed a rich potential for carbon capture stocks. In fact, experts suggest that the carbon offset marketplace is expected to hit $50 billion annually, by 2030.

This industry is poised for dramatic growth over the next decade.

But, understanding the carbon markets and how these stocks work can be a little tricky.

Carbon capture and storage (CCS) investment is an excellent solution to reduce emissions, thereby permanently removing CO₂ from the atmosphere. In fact, nature has used carbon capture technology for millennia…in the form of trees!

If you’re considering investing in carbon capture stocks and technology, the following guide outlines all the ins and outs of the carbon market, so you can make an informed decision.

What Are the Best Carbon Capture Stocks to Buy 2023?

The clean energy sector¹³ is growing rapidly, and the companies within it are doing very well. You will never go wrong investing in carbon capture stocks in 2023. You can expect handsome returns while also contributing to reducing carbon emissions through investing in carbon capture companies.

The best part is that you can also trade these carbon capture stocks on stock exchanges. If you want to invest in companies helping the environment and are likely to generate steady returns, let’s look at the best carbon capture stocks you should consider.⁵

Occidental Petroleum

One of the best ways to invest in carbon capture is through Occidental Petroleum, one of the world’s largest oil and gas producers. Occidental Petroleum is a US oil and gas firm based in Texas founded in 1920.

The firm recently sold off its conventional oil fields in California for $1 billion, thus acquiring capital to invest in shale drilling projects and higher-margin production operations.

The firm ticks many key boxes for investors looking for a carbon capture stock. The firm has a market capitalization of $54.041 billion and reported net profits of $2.8 billion in 2021.

Investors say that Occidental Petroleum is increasing its cash flow by divesting from slow-growing assets like its oil fields. That will give it the capital to buy back shares, pay down debt, or invest in higher-growth shale assets that are more profitable than the ones it’s selling off.

Aker ASA

Aker Solutions, a Norwegian company, has been working on carbon capture projects since the early 2000s, and today they’re one of the leading firms in this area. Aker Carbon Capture ASA stands out because they’ve developed its carbon capture technology. Their solutions are flexible enough to be scaled up for large industrial plants and small enough to be deployed in smaller facilities.

It also has interests in offshore wind projects, such as Kvaerner ASA, which are part of its plan to achieve net-zero emissions by 2050. The company has said that it plans to continue investing in offshore wind projects in Europe, where there is much scope for growth. The firm has a market capitalization of $1.5 billion, delivering growth of 129.7% in 2021.⁵

Equinor ASA

This firm is based in Stavanger, Norway, and has a market capitalization of 123.571 billion. The firm reported profits of $1.406B in 2021. Equinor ASA because they are the sixth-largest oil producer and gas producer globally.

The company is committed to climate change mitigation, meaning you will grow your portfolio while positively impacting the environment.

If you want to invest in the fight against climate change, you can buy Equinor carbon capture ASA stocks. The firm is working towards reducing carbon emissions by using carbon capture technology and other technologies that industry experts have developed to reduce carbon emissions and make energy more efficient for consumers globally.⁹

Houston Based NRG Energy

NRG is another firm working on carbon capture for many years now. They started with a pilot project at their WA Parish coal-fired power plant in Texas back in 2011. The project was successful and led NRG to expand it further to include their other power plants. You should invest in NRG Energy carbon capture ASA because it has an extensive carbon capture portfolio that stands out.

The firm also has a significant renewable energy business and an aggressive growth plan. It has a market capitalization of $9.45 Billion and earned $2.2 billion in net profits in 2021. NRG Energy is an excellent option for investing in carbon capture stocks due to the focus of its business operations on environmental protection and sustainability. The company deals with solar projects, wind power projects, and nuclear power projects.

Brookfield Renewable Partners (BEP)

There are a lot of carbon capture companies out there, but Brookfield Renewable Partners is at the top of the heap. This company is one of the largest wind power providers in North America and was founded in 2011 and is based in Bermuda. BEP is now the world’s largest clean energy infrastructure company, offering a wide range of services and deploying clean energy worldwide.

The firm has successfully built coal-to-gas plants in China and biomass power plants in India, which have proven to be profitable. The company made $0.220 billion in net earnings just last year. Brookfield Renewable Partners is also one of Canada’s most valuable companies, with a market cap of nearly $25.74 billion.

Carbon Streaming

Corporation Carbon Streaming Corporation is a Toronto-based clean energy company that was established in 2004. It offers businesses the opportunity to purchase emissions reduction through the trade of CO₂ credits for each ton of CO₂ removed from fossil fuel power plants. Its business model is supported by government legislation that requires industries to reduce their carbon footprint, with penalties imposed on companies that don’t meet the set targets.

The company has a steady income stream from its partners who want to avoid the fines, thus making it an attractive investment option.

What Company Leads in Carbon Capture? (Carbon Capture Companies to Watch)

We have several carbon capture companies working on promising carbon capture technologies.¹⁴ Although most of these companies are still relatively young, some have already developed effective and affordable ways to remove carbon dioxide from the atmosphere.

The field is picking up speed and interest from various players around the globe.⁷ There is also a growing interest in finding ways to profit from capturing carbon dioxide.

The companies leading in carbon capture include Climeworks carbon capture ASA based in Zurich, Switzerland; Carbfix, based in Iceland, Global Thermostat, established in the US in 2010; and Net Power, based in Durham, North Carolina. Carbon Engineering, Shell, Chevron, and NRG Energy are other carbon capture and storage companies to watch.

What Are Carbon Capture Stocks?

The ways to fight climate change are often in the spotlight, with renewable energy taking center stage. But another part of the solution that many proponents of green technology are banking on is carbon capture. Carbon capture stocks are companies that provide technologies designed to reduce or remove carbon dioxide from the atmosphere.

Investing in carbon capture stocks is a way to profit from the growing demand for carbon reduction and sequestration technologies. These companies make concerted efforts to disclose their carbon emissions and have expressed their support for policies that encourage emission reductions through regulation or incentives. For example, some companies build and operate facilities that capture CO₂ from smokestacks and then inject it into oil wells to help extract oil. This process is called enhanced oil recovery (EOR).⁷

Other companies are focused on carbon capture, utilization, and storage (CCUS). These carbon capture companies are developing technologies designed to remove CO₂ from the atmosphere or collect it directly from its source. Some of these technologies convert CO₂ into feedstock for plastics and other products. Others compress and store CO₂ underground, so it does not enter the atmosphere.

Is Carbon Capture a Good Investment?

The key drivers of demand for carbon offsets¹⁵ include increasing public awareness of climate change and the development of low-cost technologies to remove carbon dioxide from the atmosphere. Among the most significant investments in carbon offsets are those made by carbon capture stocks of companies involved in the mining industry. By investing in carbon capture, you get to collect money for the tons of CO₂ you’re capturing, plus you have a safer, more stable climate to work and live in.²

Carbon Offset Marketplaces

The carbon offset marketplace is an excellent way for buyers and sellers of carbon credits to connect and do business. These marketplaces are usually Web-based platforms where sellers can list their credits for sale, and buyers can browse (or search) through those listings to find ones they want to buy. The buyer then pays the seller in exchange for possession of those credits.

High Projected Growth

The carbon offset marketplace will hit $50 billion yearly by 2030, and the industry is poised for dramatic growth. Carbon capture stocks are thus an excellent investment. You get to help the planet while also strengthening your portfolio.

Many investors are looking for ways to capitalize on this sector. You get to invest in a potentially lucrative market while also helping to curb the global climate crisis.¹⁰

Carbon Capture Stock NASDAQ

Investing in carbon capture technology can help reduce overall CO₂ emissions while potentially generating profits for your portfolio. You should consider NASDAQ Carbon capture stocks like Aker Carbon Capture ASA, FuelCell Energy, and Delta Cleantech. These stocks are trading at below $10 but are expected to rise.⁸

Carbon Capture Stocks CEI

As the world focuses more on climate change, carbon capture is beginning to look like a good investment. Camber Energy Inc. combines legacy oil and natural gas assets with custom energy and power solutions for commercial and industrial clients to make it an incredible place to invest. In addition to investing in carbon capture projects, the company owns oil and natural gas properties, where they apply their clean energy technologies. However, the stocks don’t post consistent returns.

Carbon Capture Penny Stocks

More than 1,000 companies are working on carbon capture today, with many more likely to join soon. But there are only a handful of stocks focused on carbon capture that you can invest in right now. The three leading carbon capture penny stocks to invest in are Aker Carbon Capture ASA, Equinor ASA, and Occidental Petroleum.³

What is Carbon Capture Technology?

Burning fossil fuels (oil, coal, and natural gas) releases carbon dioxide. Carbon dioxide is widely accepted as the main greenhouse gas responsible for global warming and climate change. There is a need to find new ways of capturing CO₂ from power stations and other industrial plants before it enters the atmosphere.³

Carbon capture technology¹⁶ involves removing CO₂ from industrial processes or energy generation and storing it underground or utilizing it. These processes do not eliminate CO₂ from entering the atmosphere but rather use it in a way that does not contribute to global warming—companies working on this technology offer investors an opportunity to benefit from the growing demand for these solutions.¹¹

Carbon capture is a technology that captures carbon emissions from power plants and other industrial facilities. The captured emissions are then either stored underground or used for other purposes. Meanwhile, renewable energy is gradually becoming cheaper and more efficient, but some experts argue that carbon capture is necessary to transition to a green economy. Other experts say that it’s too expensive and not worth the investment.⁴

You can use carbon capture on power plants, industrial facilities, and other sources. The stored carbon dioxide can then be used for enhanced oil recovery (EOR). EOR involves pumping carbon dioxide into old oil fields to help increase production. The carbon dioxide can also be stored underground or used to make chemicals.

Techniques for Capturing CO₂

CO₂ Carbon capture is not just about the future of energy. It’s also about the future of our planet. Combating climate change is a global issue, with many countries and organizations looking to clean up their carbon emissions. One of the best ways to do that is to invest in carbon capture technologies.⁹

There are three main techniques for capturing CO₂¹⁷ including pre-combustion capture, post-combustion capture, and oxyfuel combustion. Post-combustion capture is the most widely used method of capturing CO₂, and it uses amines or alkanolamines to absorb the gas from power plants or other industrial facilities.

In oxyfuel combustion, oxygen is separated from the air and then burnt with fossil fuels. This method results in pure CO₂ and water vapor which can be captured easily as a liquid via cooling techniques. Finally, pre-combustion captures CO₂ by separating it from fossil fuel feedstocks like gas or coal before burning it for energy production.

Importance of Forest Cover and Afforestation

Trees remain one of the best carbon capture technologies¹⁸ available. They absorb carbon dioxide from the atmosphere through photosynthesis as they grow and release it back into the air when they die. Planting trees is often proposed as an affordable way to reduce our carbon footprint. Reforestation could sequester 13 % of U.S. carbon emissions each year — equivalent to taking all cars off American roads for 11 years.

Forest cover helps in reducing atmospheric carbon dioxide by absorbing around 2 billion tons of carbon per year. It is also effective for reducing soil erosion and maintaining soil health. Sadly, forests are now disappearing at five acres per second. The U.S. loses 36 million acres of forest each year to development and other causes like wildfires and pests.

A tree’s carbon capture potential depends on several factors, including the species, age, and location. Some tropical forests have been losing their capacity to store carbon due to drought stress and deforestation. Forests provide additional benefits beyond capturing carbon dioxide from the atmosphere. Trees have been shown to reduce air pollution, improve water quality, protect biodiversity and help communities adapt to climate change.

Tree planting offset programs provide an effective way to reduce and eliminate emissions, when issued by one of the top carbon offset providers.

Benefits of Carbon Capture Technology

Carbon capture technology is beneficial because it traps excess carbon dioxide and prevents it from escaping into the atmosphere. The process keeps pollutants out of the air by trapping them. Carbon dioxide is one of the leading greenhouse gasses responsible for climate change.

Carbon capture technologies are beneficial in several ways:

• Carbon capture technology can help prevent carbon dioxide from entering the atmosphere, thus reducing harmful emissions.
• It can help reduce greenhouse gas emissions from industries, power plants, and other sources, reducing global warming.
• People can use carbon capture technology in industrial processes to produce new materials from carbon dioxides, such as plastics and concrete.
• Firms can use carbon capture technology to remove CO₂ from natural gas before it is transported through pipelines, which improves its calorific value.
• Reducing costs for power plants or industrial facilities, lowering CO₂ emissions from vehicles, and saving money on fuel consumption.

Invest in Carbon Capture Technology Today

Investing in carbon capture stocks can be a lucrative way to make money while helping save the planet. Investors who want to take real action can still profit by investing in carbon capture stocks and have the added benefit of reducing eco footprint costs around the world. Know what you’re buying and the risk involved before making any big moves with your portfolio involving carbon capture stocks.

Information is not intended as actual financial advice but for entertainment purposes only. All investment strategies and investments involve risk of loss. Nothing contained in this website should be construed as investment advice.

Frequently Asked Questions About Carbon Capture Stocks

¹Benzinga, M. P. 26 April 202. 3 Carbon Capture ETFs To Consider. The Business Insider. 8 April 2022. Web. <https://markets.businessinsider.com/news/etf/3-carbon-capture-etfs-to-consider-1030346950>

²Olic, D. 23 July 2021. These companies are sucking carbon out of the atmosphere — and investors are piling in. CNBC. 8 April 2022. Web. <https://www.cnbc.com/2021/07/23/these-companies-are-sucking-carbon-from-the-atmosphere.html>

³Bohlen, M. 12 July 2019. Carbon Capture And Storage Companies To Consider. Seeking Alpha. 8 April 2022. Web. <https://seekingalpha.com/article/4438777-carbon-capture-and-storage-companies-to-consider>

⁴Wealthy Diligence. 2020. 5 Best Carbon Capture Stocks for April 2022 (Green Energy). Wealthy Diligence. 8 April 2022. Web. <https://wealthydiligence.com/carbon-capture-stocks/>

⁵N Analyze. 2 August 2021. The Best Pure Play Carbon Capture Stock. Green Technology. 8 April 2022. Web. <https://www.nanalyze.com/2021/08/best-carbon-capture-stock/>

⁶Ng, A. 27th January 2022. The Top 3 Carbon Capture Stocks: How To Invest in Removing Carbon From the Air. SustainFi. 8 April, 2022. Web. <https://sustainfi.com/investing/carbon-capture-stocks/>

⁷Trendafilova, P. 11 October, 2021. What Are The Top 5 Carbon Capture Stocks? Carbon Herald. 8 Apri, 2022. Web. <https://carbonherald.com/what-are-the-top-5-carbon-capture-stocks/>

⁸Docan, C. 5 April 2022. 3 Carbon Capture Stocks Under $10 Worth Your Attention. Investor Place. 8 April 2022. Web. <https://investorplace.com/2022/04/3-carbon-capture-stocks/>

⁹Mr. Sustainability. 4 Feb 2022. Equinor moves ahead with CCS. Mr. Sustainability. 8 April 2022. Web. <https://www.mr-sustainability.com/stories/2021/equinor-moves-ahead-with-ccs>

¹⁰Shankleman, J and Rathi, A. 2 June 2021. Climate Solution Is Mired in Disagreements. Bloomberg. 8 April 2022. Web. <https://www.bloomberg.com/news/features/2021-06-02/carbon-offsets-new-100-billion-market-faces-disputes-over-trading-rules>

¹¹Albritton, J. 22 October 2020. Carbon Capture for the Last Mile: Why Carbon Capture, Utilization, and Storage is a Game Changer. The Nature Conservancy. Bloomberg. 8 April 2022. Web. <https://www.nature.org/en-us/what-we-do/our-insights/perspectives/carbon-capture-utilization-storage-albritton/>

¹²Stiffler, L. 20 April 2021. How the Pacific Northwest is playing a key role in the burgeoning world of carbon capture tech. Geek Wire. 8 April 2022. Web. <https://www.geekwire.com/2021/pacific-northwest-playing-key-role-burgeoning-world-carbon-capture-tech/>

¹³University of Nebraska Lincoln. (2016). How Renewable Energy Benefits Businesses and the Environment. Environmental Studies Undergraduate Student Theses. Retrieved May 20, 2022, from <https://digitalcommons.unl.edu/cgi/viewcontent.cgi?article=1194&context=envstudtheses>

¹⁴Office of Fossil Energy and Carbon Management. (2022). Point Source Carbon Capture. Science & Innovation. Retrieved May 20, 2022, from <https://www.energy.gov/fecm/point-source-carbon-capture>

¹⁵Gov UK. (2021, March 1). Achieving Net Zero carbon emissions: a review of the evidence behind carbon offsetting. Flood and Coastal Erosion Risk Management (FCERM) research reports. Retrieved May 20, 2022, from <https://www.gov.uk/flood-and-coastal-erosion-risk-management-research-reports/achieving-net-zero-carbon-emissions-a-review-of-the-evidence-behind-carbon-offsetting>

¹⁶Department of Energy. (2021, August 17). DOE Announces $24 Million to Capture Carbon Emissions Directly From Air. Home. Retrieved May 20, 2022, from <https://www.energy.gov/articles/doe-announces-24-million-capture-carbon-emissions-directly-air>

¹⁷National Energy Technology Laboratory. (2022). DOE FECM Announced $28 Million For R&D And FEED Projects To Advance Clean Hydrogen For Transportation, Industrial Use And Electricity Production. Point Source Carbon Capture Program. Retrieved May 20, 2022, from <https://netl.doe.gov/carbon-management/carbon-capture>

¹⁸PennState Extension. (2020, September 24). How Forests Store Carbon. How Forests Store Carbon. Retrieved May 20, 2022, from <https://extension.psu.edu/how-forests-store-carbon#:~:text=Trees%20are%20without%20a%20doubt,wood%2C%20branches%2C%20and%20roots>

¹⁹DOE Announces $14.5 Million Supporting Direct Air Capture and Storage Coupled to Low Carbon Energy Sources. (2021, October 26). Articles. Retrieved May 20, 2022, from <https://www.energy.gov/articles/doe-announces-145-million-supporting-direct-air-capture-and-storage-coupled-low-carbon>

²⁰SD-Pictures. Pixabay. Retrieved from, <https://pixabay.com/photos/industry-environmental-pollution-1761801/>