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The COP26 conference is now over – to some it seemed like a disappointment, that more could be achieved, but it has also thrown down the proverbial gauntlet for governments and companies that want to work to reduce carbon emissions.

While COP26 provided some of the political commitments, the actual delivery is going to be the province of companies on the ground, which will be tasked with helping the world to function in a much lower carbon format. Companies which can assist with this – e.g. with new technology or materials – are going to be very well placed to profit as well.

Here are five companies we have come across in the last year or so which seem well positioned to assist with a low carbon global future.

ITM Power (LSE:ITM)

Hydrogen specialist ITM Power is already widely followed by investors. The company just announced that it is going to be participating in the Green Hydrogen for Scotland Consortium alongside Scottish Power and BOC. The company is going to be working on the deployment of the largest electrolyser yet seen in the UK, near Glasgow. It has also said that it has a back log of projects and is obviously getting plenty of interest from partners seeking hydrogen solutions.

Nano One (TSX:NANO)

Toronto-listed Nano One is a battery materials technology specialist backed by the Canadian government which is working with several major partners, including undisclosed auto manufacturers, on next generation batteries. Nano One owns proprietary technology which can allow for the manufacture of batteries with greater range and power efficiency than those currently on the market. The company is also focused on facilitating sustainable supply chains which will be better for the environment in the long run.


Velocys (LSE:VLS)

One of the big carbon emitters is the airline industry, and getting people to stop flying looks like it could be a challenge. Velocys has been attracting attention because it is working on carbon-negative aviation fuel solutions with big airlines like IAG. Velocys is a spin-out from Oxford University which is developing new fuels using existing waste materials. The company already has deals in place with airlines like Southwest Airlines to buy its recycled fuel. If it can crack the aviation fuel conundrum in an carbon negative way, well then, the sky’s the limit…

Net Zero Infrastructure (LSE:NZI)

Net Zero Infrastructure is a London-listed cash shell which has been added to the exchange with the intent of acquiring one or more projects in the clean energy network in the UK. The cash shell’s founders have identified the need for capital for the companies that support the companies that produce green energy. How is the UK going to properly manage the sudden demand for green power? The range of projects that this SPAC is looking at is quite broad, but there are quite a few still private companies with interesting technology in the space that could play an important role in assisting the UK towards its own carbon neutral goals.

Eqtec (LSE:EQT)

Eqtec is one of the new generation of companies active in the biomass to waste market. Given how much of a contributor that biomass can be to methane gasses, stocks like this are sitting on the cutting edge of the quick wins identified at COP. In the case of Eqtec, it is involved in processing biomass and turning that into electricity. It is attracting attention with the work that it is doing in California where it is hoping to turn dead wood into power, but also in other countries like the UK where local governments are waking up to the power generation possibilities. In the words of CEO, David Palumbo, this technology is “ready to be delivered now.”

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Stuart Fieldhouse

Stuart Fieldhouse

Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.

Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.

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