Canada Budget 2022 earmarks $12.5B more for climate: 2 TSX clean stocks

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Canada Budget 2022 earmarks $12.5B more for climate: 2 TSX clean stocks

Canada Budget 2022: NPI & BLDP, 2 TSX clean energy stocks to consider
Image source: Pixabay.com

Highlights

  • C$1.7 billion over five years as incentives will go to extend the zero-emission-vehicles program to March 2025
  • C$ 250 million for pre-development of clean electricity projects was promised over a period of four years
  • Northland Power’s stock has recovered in 2022 but Ballard’s stock is in the red year-to-date

Climate change was expected to be a hot topic when the budget was presented Thursday, April 7, and it was. The Liberal-NDP coalition promised C$12.5 billion more for climate change.

C$1.7 billion over five years as incentives will go to extend the zero-emission-vehicles program to March 2025. C$547.5 million was allotted for a similar program but for medium- and heavy- duty zero-emission-vehicles.

C$ 250 million for pre-development of clean electricity projects were promised over a period of four years. In light of this, let’s look at two TSX clean energy stocks

Northland Power Inc (TSX:NPI)

Northland Power makes wind energy and solar energy infrastructure and has regulated utilities operations. Its operations have a global span across North America, Asia, Europe and Latin America.

The company has a market cap of C$9.6 billion. The stock closed at C$42.04 on Wednesday, April 6. Its earnings per share is 0.85. Its monthly dividend is C$0.10 with a dividend yield of 2.854 per cent.

The NPI stock has lost nearly eight per cent in the last year, but has gained over 11 per cent year-to-date (YTD). It is up 1.5 per cent over the past week and saw its 52-week low of C$34.95 on January 12.

Also read: Canada budget 2022: What to expect & what are the big questions?

Ballard Power Systems Inc (TSX:BLDP)

Ballard Power Systems is a player in the fuel cell market. Considered clean energy, here an electrochemical cell provides electricity without combustion.

Ballard’s market cap is C$4 billion. The BLDP stock closed at C$14.01 Wednesday, April 7.

The stock has lost 53 per cent in the last year and 5.5 per cent in the last week. Its YTD loss is at 13 per cent. Its 52-week high of C$24.84 came on April 8 and it seems like it has generally been on a downward trajectory since.

Also read: What is Canada's Federal Budget and how it can impact you?

Canada Budget 2022: NPI & BLDP, 2 TSX clean energy stocks to consider

Image source: © 2022 Kalkine Media®

Bottom line

The new budget also offers C$600 million in support of more renewable electricity and grid modernization projects. Northland Power’s stock has recovered in 2022 but Ballard’s stock seems to be on a downward trajectory.

Also read: Canada Budget 2022: A look at macroeconomic indicators

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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