Climate tech is rapidly becoming one of America’s largest industries, as it has recently seen an unprecedented period of funding from institutional investors and venture capitalists alike. In fact, Climate Tech and CleanTech have recently become sectors on various investor profiles like this one here.
The word ‘climate tech’ became popularized fairly recently, only becoming widely used in 2020. This doesn’t mean the climate tech companies themselves are anything new, with some having been started a few decades ago.
Climate tech is sometimes used synonymously with cleantech, but the two terms are actually slightly different from each other. While both forms of technology are positive for our society and world, climate tech refers to technology that addresses climate change directly – while cleantech focuses on not hurting the climate.
For some clarification, we are not going to be looking at cleantech companies in this article. We’re only going to be going over climate tech companies, as those companies are developing technologies that will battle the impacts of climate change over the next decades come.
If you’re looking for some climate tech companies to invest in for this financial year, we recommend reading ahead as we go over our top three climate tech stocks to invest in for 2022.
1. NextEra Energy
While there are a lot of sustainable energy companies, it can be difficult to come across well-established climate tech companies that are focused entirely on energy. NextEra Energy is one of those companies and is a major leader in wind and solar energy.
Headquartered in Juno Beach, Florida, the NextEra team is at one of the frontlines of the war against climate change. It is likely that large sections of the state will become submerged due to rising ocean waters this century. With NextEra’s clean energy, they hope to decarbonize our country’s power grid and set an example for the entire globe.
Additionally, NextEra Energy has been continually investing portions of its profits in new climate technologies such as green hydrogen – a new form of renewable energy that produces emission-free hydrogen by shocking water.
Today, their stock price sits at $78.93 on the New York Stock Exchange. The stock price hit an all-time high of $93.73 at the end of the year, on December 31st of, 2021. With many investors looking toward NextEra this year, it could be a good investment for individuals looking for climate tech stocks.
2. Stem
Stem is a smart battery storage manufacturing company that uses renewable energy to its maximum. These battery storage solutions can be scaled up to power entire grids. They serve companies in the fortune 500, including many project developers and power producers.
Stem utilizes their Athena software, which helps them lower their cost of business by solving various problems such as switching between different forms of energy.
These smart battery energy solutions will truly revolutionize how clean energy is able to be used on a mass scale – which may eliminate the need for dirty energy such as coal or fossil fuels. Experts believe the market for this type of energy storage could exceed $1.2 trillion over the coming decades.
Stem was founded in 2009 in San Francisco by Bill Bush. Today, their renewable energy storage batteries are used by over 75 cities, with 83,000 total grids being in use. Their stock price is currently $8.47 on the NYSE.
3. ZeroAvia
ZeroAvia is a very new company, being founded in the first quarter of 2018. Its mission is to supply aircraft companies and manufacturers with emission-free jet engines. This will benefit our climate by replacing the engines that run on jet fuel, once it is economically sound to do so, of course.
The development of these engines, however, is the first step in changing the airline industry to become completely sustainable. And for that reason, ZeroAvia is a very hot company for many investors looking for climate tech investments.
Unfortunately, ZeroAvia is not a publicly listed company, so you won’t be able to buy their stock on your typical brokerage exchanges. Fortunately, you can buy ZeroAvia stock through Equityzen’s various investment solutions. If you sign up for an account, you may request access to invest in ZeroAvia, as it is one of the private companies they offer investments in.
To invest in ZeroAvia on Equityzen, check out this link here.
We hope you found these three companies interesting and that you consider an investment in them. They are truly changing our planet for the better, and investing in them will surely help them out, and perhaps you as well!
