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Summary
- Canada is exploring clean energy alternatives to combat climate change.
- Industries focusing on clean energy alternatives might benefit from the upcoming Federal Budget 2021.
- To diversify your portfolio, you might consider exploring clean energy stocks this year.
As Canada focuses on the development of a low-carbon hydrogen economy, Alberta unveiled what’s expected to be the country’s first ever hydrogen hub on Wednesday, April 14.
Reports say that the Edmonton Region Hydrogen HUB comes with a backing of C$ 2 million in funding from three levels of government and economic development leaders. The aim behind this initiative is to run vehicles and machinery on zero-emissions hydrogen fuel, which will help the green transformation and in reducing the carbon footprint.
Alanna Hnatiw, the hub’s chairperson, said that this initiative will serve as a blueprint for hydrogen development in Canada.
Canada is exploring clean energy alternatives to combat climate change and it is expected to focus on it in the upcoming Federal Budget 2021.
On that note, here are some Canadian clean energy companies you can explore for investment options.
Ballard Power Systems Inc (TSX:BLDP)
Recently, Canada agreed with Germany to enable both countries in achieving the target of net-zero emissions by 2050. And as Canada focuses on the clean energy sector, companies like Ballard Power (TSX:BLDP), which is one of the major hydrogen fuel cell producers in the country, is likely to benefit.
Back in February, Ballard agreed to build a system solution in partnership with cryogenic equipment manufacturer Chart Industries Inc, which included a fuel cell engine that comes with onboard liquid hydrogen.
Ballard’s market cap stands at C$ 8.2 billion, according to TMX data, with a price-to-book (P/B) ratio of 7.265. The stock dropped about seven per cent year-to-date (YTD), but expanded by over 96 per cent over the past year.
One-year stock performance of Ballard Power (Source: EODHD/Others/TR)
In 2020, Ballard’s cash and cash equivalents amounted to US$ 763.4 million, an increase of about 417 per cent year-over-year (YoY). However, for the same period, its gross margin fell by 5.6 per cent to US$ 20.9 million.
Brookfield Renewable Partners L.P. (TSX:BEP.UN)
Brookfield Renewable Partners recently announced its plans to build a green hydrogen production plant in collaboration with Plug Power (NASDAQ:PLUG). The company is worth C$ 14.7 billion and holds a P/B ratio of 2.414, according to TMX data.
One-year stock performance of Brookfield Renewable (Source: EODHD/Others/TR)
Brookfield Renewable offers a quarterly dividend of US$ 0.434 and currently has a dividend yield of 2.822 per cent, as per TMX. While its stock dropped about 2.1 per cent YTD, it has grown by nearly 58 per cent in the last one year.
The company achieved a revenue of US$ 3.8 billion in 2020, which was down from that of US$ 3.9 billion in 2019. Its cash and cash equivalents for 2020, however, climbed to US$ 431 million from US$ 352 million in 2019.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
