This will be remembered as one of history’s major turning points.
For months, the story of green ammonia has been gaining momentum in the media, driven primarily by increased interest from the heavy shipping industry.
If you’re not up to date on this subject, I can sum it up for you in one line: After 80 years of dominance on the high seas, marine diesel is on is way out.
Shipbuilders from Europe and Asia — including New Times Shipbuilding, Maersk, Daewoo, Oshima Shipbuilding, Samsung Heavy Industries, and a list of others — have either made plans, or begun to execute on large-scale ammonia-fuel experimentation.
The expectation is that within the next decade, marine diesel will lose its long-standing status as the primary motivator of commercial shipping — ending an era that goes back to World War II.
But today, we’re seeing signs of an even broader shift toward an ammonia-powered future.
Not just ships, but entire power grids.
Earlier this month, an agreement was signed by Japanese engineering giant IHI Corporation and Indian power supplier Adani Power Ltd. to test ammonia as an additive to Adani’s traditional coal-fired plants located outside the northwest Indian port city of Mundra.
Initial testing will involve burning a 20/80 ammonia-to-coal mixture, but the ultimate goal will be a purely ammonia-powered energy source.
These tests take place under substantial legislative pressure, as last November, India’s government signed a commitment to shift its economy completely off fossil fuels by the year 2070.
50 Years of Legislation-Driven Demand
Though a half-century timeline may seem unrealistically long, the global effects will be no less profound as India’s rapidly growing population, which currently relies on fossil fuels for almost 80% of its power, gets set to overtake China’s before the end of this decade.
India’s more immediate plans call for a 500-gigawatt increase in carbon-neutral power generation by the year 2030 — equivalent to roughly 40% of current U.S. domestic power production.
And now it’s all but certain that ammonia will play a substantial role in both the near and the long term plans.
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The one big question that still remains is where all of this ammonia will come from. The agreement between IHI and Adani does not go into detail on this topic, nor are there any concrete answers as to how India’s massive demand for the fuel will be met in the grander scheme of things.
That demand is now set to trigger one of the biggest bull markets the world has ever seen — the rush for cheap, clean ammonia fuel production.
The big energy producers are all looking into this, but if you want exposure to a young, unknown upstart in the field that’s laser-focused on the problem, then there is an option.
Early-Stage Risks… Early-Stage Potential
A company based out of British Columbia is currently testing proprietary, near commercial-ready ammonia production units.
Using nothing but electricity, air, and water, these stackable units will be able to turn out economically viable ammonia fuel for a variety of applications.
Their portability will allow for on-site fuel production, a factor which by itself will transform the very nature of commercial and industrial logistics everywhere where power needs are met by externally supplied fuel-sources.
Within several years, a decade on the outside, ammonia production will likely be a trillion-dollar-per-year global market, but today, this company with the technology and the IP rights to bite off a substantial chunk is trading for under $30 million total market cap.
The reason for this irrational disparity? Simple. The company is still in the pre-commercialization phase, and that makes investors wary — especially retail investors, as this company’s stock is already public and trading.
There is risk here, to be sure — as there is with all stocks at this stage of development. In fact I’ll go so far as to say that anybody with anything short of high risk tolerance should not even bother looking any further into this.
This should disqualify about 98–99% of those reading this.
For the remaining 1–2%, the longer-term returns on this could be life-changing.
If you want more information on the matter, I’ve got a video that will answer all of your questions.
It’s free to access, no email or registration required, and it’s available to view immediately right here.
Fortune favors the bold,
His flagship service, Microcap Insider, provides market-beating insights into some of the fastest moving, highest profit-potential companies available for public trading on the U.S. and Canadian exchanges. With more than 5 years of track record to back it up, Microcap Insider is the choice for the growth-minded investor. Alex contributes his thoughts and insights regularly to Energy and Capital. To learn more about Alex, click here.