3 Clean Coal Technology Stocks for a Greener Portfolio

Stocks to buy

As the world intensifies its search for sustainable energy solutions, clean coal stocks are garnering significant attention. This interest stems from advancements in clean coal technologies designed to enhance sustainability and efficiency. By reducing greenhouse gas emissions, these innovations are pivotal in addressing the impacts of coal energy on climate change.

Additionally, according to the International Energy Agency, coal demand soared from 4,700 million tons in 2000 to over 7,000 million tons by 2020. Despite the tilt towards renewables, coal remains critical to the global energy supply. Therefore, this necessitates technologies for more environmentally-friendly consumption.

Looking forward, the clean coal technology market is projected to experience healthy growth. It’s estimated to exceed $5.4 billion by 2032, with a compound annual growth rate of 4%. This upward trend underscores the strategic shift towards alternative energy sources. Consequently, these three stocks emerge as crucial components in the dynamic energy sector’s future.

General Electric

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General Electric (NYSE:GE), a powerhouse in industrial innovation, has been making significant strides in the clean coal technology sphere. GE’s shares have surged by an impressive 81% year to date (YTD), propelling its market capitalization to a remarkable $1.34 trillion. This reflects a substantial 38.4% increase compared to the previous year.

At the core of GE’s commitment to sustainable energy is its Gasification division, which transforms coal into syngas, effectively reducing greenhouse gases. This technology aligns seamlessly with carbon capture and storage (CCS) methods, highlighting GE’s focus on minimizing carbon emissions. Additionally, GE’s investment in Integrated Gasification Combined Cycle (IGCC) technologies demonstrates its pursuit of cleaner energy solutions.

Furthermore, the company reported robust non-GAAP EPS of 82 cents, surpassing expectations by 26 cents. Alongside, GE saw its revenue soar to $17.3 billion, a 19.6% increase year over year (YOY). These strong financial indicators, coupled with rock-solid stock performance, position GE as a resilient and forward-thinking stock choice.

Occidental Petroleum (OXY)

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Occidental Petroleum (NYSE:OXY), a leader in the oil industry, is also pioneering clean coal and carbon capture technologies.

With over 40 years in carbon management, Oxy integrates CCS as a vital solution to lower the environmental impact of coal combustion. This commitment positions them at the forefront of industrializing Direct Air Capture technology and reducing atmospheric CO2 in collaboration with Carbon Engineering.

Moreover, Oxy’s subsidiary 1PointFive has teamed with Amazon (NASDAQ:AMZN) on a decade-long project to utilize Amazon’s facilities for carbon reduction. This initiative highlights Oxy’s dedication to promoting clean coal and carbon capture solutions. OXY establishes itself as an innovator in environmental sustainability.

Additionally, the company recently reported third-quarter Non-GAAP earnings per share of $1.18, exceeding expectations by 32 cents. Also, revenue came in at $7.4 billion, surpassing forecasts by $440 million. Consequently, Oxy’s partnerships and strong financials underline its solid market position and promising future in clean energy technologies.

KBR Inc. (KBR)

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Engineering and construction services player KBR, Inc. (NYSE:KBR) is making significant strides in the clean energy sector with its innovative Transport Integrated Gasification (TRIG) technology. This cutting-edge technique, which adeptly transforms lignite coal into synthesis gas (syngas), has been successfully commercialized at Mississippi Power’s Kemper County energy facility.

Financially, KBR is on a solid trajectory. The company’s third-quarter Non-GAAP earnings per share of 75 cents edged past expectations by a cent. More impressively, KBR’s revenue climbed to a jaw-dropping $1.77 billion, marking an 8.6% increase YOY. This financial robustness is reflected in the stock’s remarkable surge of 183% over the past five years. Clearly, it serves as a testament to the company’s growth and investor confidence.

Furthermore, TipRanks analysts give KBR a strong buy rating, predicting a substantial 34% upside potential. This outlook, combined with KBR’s technological and financial progress, signals promising prospects for savvy investors looking for profitable long-term opportunities.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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