There has been a rise in small cap renewable energy stocks over recent years – as the sector has become more in favour with government and consumers.
Solar has been leading the charge as the most viable and preferred method. However, other methods such as wind and water are gaining prevalence and some companies are seeking to turn waste and heat into energy.
Almost $30 billion has been invested in renewable energy over the past two years and renewable energy now compromises almost one fifth of Australia’s electricity generation, with South Australia leading the charge.
If elected, the Labor party has vowed to make Australia “a renewable energy superpower” and is targeting 50 percent of energy to come from renewables by 2030.
This is driving the growth of a sector that was fairly nascent just ten years ago.
Supporting the generation of energy from renewable sources is affordable and high capacity storage systems, which has also led to a boom in the battery sector – in particular lithium-ion batteries have been gaining a lot of attention.
While prices may put stress on the sector, there is strong evidence of that momentum in the sector is continuing.
US solar farm construction company, Signal Energy, just recently won two major contracts for projects in NSW totalling $620 million.
The ASX is now home to a number of small and large cap companies in the renewable energy sector – so who are they?
ASX small cap renewable energy generators
Genex (ASX:GNX) is a developer of innovative clean energy and power generation solutions. It has a $300 million hydro and solar project in North Queensland and a number of other solar and wind energy projects in development.
Infigen (ASX:IFN) operates a number of renewable energy projects in Australia including seven wind energy sites in operation and one energy storage site. It is also developing multiple other wind and solar sites nationwide.
ReNu Energy (ASX:RNE) is focused on the development of solar and bioenergy (energy produced from waste) projects. It has agreements to acquire two projects in South Australia and it sells solar and bioenergy solutions to customers.
Pacific Energy (ASX:PEA) is an energy supply business. It operates over 40 power stations and is an energy infrastructure owner. Whilst not all of its energy is renewable some of its power plans use water to supply renewable hydro power.
Windlab (ASX:WND) is a developer of wind farms with a range of projects under development in Queensland. It has two in wind farms in operation in Victoria and one in Western Australia.
ASX small cap renewable energy storage suppliers
Redflow (ASX:RFX) is an energy storage company using its zinc-bromine flow battery for sustainable energy storage.
Protean (ASX:POW) is focused on the development of its South Korean vanadium project that will supply its patented vanadium redox flow battery solution that will be used for storage of renewable energy.
Kalina Power (ASX:KPO) uses its Kalina Cycle technology that uses waste heat from industrial processes to produce energy to supplement the plant facility and reduce overall operating costs and carbon footprints for its customers. It is currently developing a clean energy power generation program in Canada.
1414 Degrees (ASX:14D) is commercialising a thermal energy storage system (TESS). It recently announced that it has installed and integrated the system into its first commercial site.
Magnis Resources (ASX:MNS) is focused on becoming one of the world’s largest manufacturers of lithium-ion battery cells for energy storage. It intends to build three giga-factories in Australia, the US and Germany. It also has a graphite deposit in Tanzania.
Novonix (ASX:NVX) is a battery technology company. It makes battery anode material with high capacity and long life and battery technology. NVX also provides consulting and testing services used by battery and OEM multinationals. It also owns a graphite deposit.
If you didn’t want to invest directly in a renewable energy company, there are other alternatives, such as New Energy Solar (ASX:NEW).
NEW is a sustainable investment business. It invests in large-scale solar plants. It has more than $1 billion in solar plants in the US and recently launched a US$200 million solar investment vehicle on the London Stock Exchange.
Small cap renewable energy stocks performance
|Ticker||Name||Last Price (14 May)||Market Capitalisation||12 month performance (%)|
|NEW AU||NEW ENERGY SOLAR LTD||1.375||480,071,646||(1.08)|
|RFX AU||REDFLOW LTD||0.041||29,217,508||(51.24)|
|KPO AU||KALINA POWER LTD||0.025||18,128,576||19.05|
|POW AU||PROTEAN ENERGY LTD||0.009||2,802,935||(47.06)|
|WND AU||WINDLAB LTD||0.99||66,947,168||(1.00)|
|MNS AU||MAGNIS ENERGY TECHNOLOGIES||0.21||128,338,559||(28.81)|
|RNE AU||RENU ENERGY LTD||0.064||7,101,039||(27.10)|
|NVX AU||NOVONIX LTD||0.48||59,106,086||17.07|
|14D AU||1414 DEGREES LTD||0.3||51,716,977||1.69|
|IFN AU||INFIGEN ENERGY||0.4625||442,409,864||(0.54)|
|GNX AU||GENEX POWER LTD||0.25||78,107,879||(7.41)|
This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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