As is well-known, it’s a revolutionary time in the energy sector. Oil and coal are on the way out. Solar energy, wind power and batteries are rapidly being phased in. Electric vehicles and batteries are starting to replace internal combustion vehicles. As the revolution progresses, some penny stocks could soar as the companies facilitate the transition away from fossil fuels.
In other words, small firms may develop products that will solve the problems hindering the transition to a zero-carbon emission world. As a consequence, those companies’ penny stocks could jump 10 times or more.
For a truly easy transition away from carbon to take place, the capacity of electric-storage systems must be greatly increased. The cost of storing power must drop tremendously. And, electricity flow must be made more reliable.
Additionally, the range of batteries for electric vehicles needs to increase. The batteries’ cost must continue to drop. And, EVs must be able to be charged more quickly and easily. Alternatively, entirely new economical, carbon-free means of powering vehicles must emerge.
Consider these penny stocks:
Penny Stocks: OZOP Energy
OZOP Energy says that its EV charging systems “can be deployed in days not months or even years in many urban areas.” In addition to providing enhanced convenience, the quickness with which the company can install its chargers leads me to believe that they are likely cheaper than competing systems.
The company is working on developing its chargers into a “NeoGrid Modular Network.” This “will spark a new generation of electrical supply, storage & distribution,” according to the company. Such a network would likely help power the company’s microgrids. These small grids would enable businesses to have an electricity source if the grid fails. The company’s microgrids also allow businesses to use the power that their renewables generate in whatever ways they want.
For example, with OZOP’s microgrid, companies can sell some of the power that their solar panels generate. They can direct the remaining portion of the power to reducing their own electricity bills.
Showing that OZOP is a credible company and not a “fly-by-night operation,” the company sells many other products, including electrical systems, to huge enterprises. Among its customers are the U.S. Army, NASA, Ford (NYSE:F), General Motors (NYSE:GM), Caterpillar (NYSE:CAT), and Exelon (NASDAQ:EXC).
Next on this list of penny stocks, SunHydrogen says that it’s “developing a breakthrough, low-cost technology to generate renewable hydrogen using sunlight and any source of water, including seawater and wastewater.” The company added that it utilizes “water electrolysis” and “low-cost nanoparticles [that] mimic photosynthesis … to separate water from hydrogen.”
According to the company, this process is inexpensive. Indeed, it makes sense that nanoparticles are much cheaper than the large electrolyzers primarily used to produce green hydrogen power. Unsurprisingly, Greentech reported that using electrolyzers to produce green hydrogen “is very expensive.”
I believe cheap, green hydrogen could power planes, boats and many other vehicles.
As I’ve stated in the past, investing in companies that developed brand new technologies is quite risky. But mitigating the risk of HYSR stock, SunHydrogen’s top executives have impressive resumes. Its CEO, Tim Young, spent 10 years at Time Warner, working “as Vice President and Regional Vice President of various divisions including America Online and Time Warner Cable.” During his tenure, “Young built some of the highest performing sales organizations at Time Warner,” according to SunHydrogen.
The company’s recently hired COO, Woosuk Kim, “executed over $4 billion in mergers, acquisitions and joint ventures.” In his last post, Kim handled M&A strategy for South Korean conglomerate SK Innovation.
Finally, SunHydrogen’s chief technology officer, Dr. Joun Lee, “studied [the] application of novel 1-d nanomaterials for photovoltaics and artificial photosynthetic systems … at the University of California, Santa Barbara.” the company reported. According to SunHydrogen, “She has published over 20 articles in high-impact peer-reviewed journals.”
SunHydrogen’s market capitalization is $279 million, which is not low by any means. However, it’s much lower than many other highly promising, pre-revenue tech companies.
Penny Stocks: Zinc8 Energy Solutions
The last penny stocks on our list, Zinc8 developed “zinc-air regenerative fuel cell systems” to store electricity. The system uses electricity to create “zinc particles.” The particles are stored and later mixed with oxygen to create electricity.
Zinc8 says that “by simply increasing the size of the fuel tank and quantity of recharged zinc fuel,” its system can be used to store more power. In other words, unlike lithium-ion batteries, companies do not have to purchase more of Zinc8’s systems to store more power. They simply buy a larger fuel tank and direct more electricity to the system.
Somewhat validating Zinc8’s system, the company reported in April that one of the “leading cloud providers” would test its “energy storage system.” The cloud provider, which will pay Zinc8 $200,000, will attempt to determine whether Zinc8’s system can be used as a backup power source for data centers.
And in September 2020, Zinc8 was one of four winners of “the New York City Department of Buildings Carbon Neutrality Innovation Challenge.” According to Zinc8, “The winners of this challenge will be supported for inclusion in the 2020 NYC Building Code.”
Zinc8 has 20 U.S. patents. And, it has a tiny market capitalization of about $40 million.
On the date of publication, Larry Ramer held a long position in MGXRF. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Larry Ramer has conducted research and written articles on U.S. stocks for 13 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been GE, solar stocks, and Snap. You can reach him on StockTwits at @larryramer.