One of the much debated talking points of the Trump administration was the complete disregard in acknowledging climate change and establishing policies that are aimed at preserving the world we live in. The Trump Administration took the decision for the biggest economy in the world to exit the Paris Climate Agreement in November last year.
New US President Joe Biden has already begun reversing environmental and energy regulations and has signed an executive order that will see the USA return to the Paris Agreement and play an instrumental role in a bid to reduce carbon emissions.
The commitment from the world’s largest economy towards reducing carbon emissions and eventually going carbon neutral will cause structural changes to the energy stocks not just in the USA, but on the ASX as well. We even estimate a renewable energy stock to be a top ASX stock to look out for in 2021. In addition to this, here are a few others that we think ASX investors should keep an eye on:
This Sydney headquartered small cap, as the name suggests, is a lithium player with projects in the Pilbara, Greenbushes and Puna Plateau regions. They have recently restarted exploration activities at its Greenbushes project in Western Australia as the global demand for lithium is intensifying. The shares surged 6% on the back of this announcement and given how hot the commodity is, LPI should be kept an eye on as far as renewable energy exposure is concerned.
Woodside is an energy heavyweight stock on the ASX with a market cap of over $25 billion. They primarily operate in the hydrocarbon and oil & gas properties. Amongst other assets, Woodside are working on two renewable hydrogen projects – H2TAS and Badgingarra located in Tasmania and Western Australia, respectively. Without going into much detail, both these projects are being worked on in partnership for the production of hydrogen. The Australian Renewable Energy Agency has established funding programs to promote hydrogen production in Australia and both these projects have been shortlisted for a $70 million funding program.
Renewable Energy is the future and when picking energy stocks, it is important to analyse how tied down the company is intradional energy assets. With Shares in Value, we do the analysis for you, and help you make a fully informed decision.