3 Ocean Power Stocks to Hydro-Power Your Portfolio
The ocean is incredibly powerful. Have you ever got caught in a riptide? It can make even the strongest swimmers look like a floating log. Companies are now beginning to use the ocean’s power to generate significant amounts of energy. Investing in ocean power stocks can help investors gain exposure to this innovative renewable energy technology.
Ocean-generated electricity has endless potential for the companies that can capture it. Recently, the U.S Energy Information Administration noted the potential energy from U.S. coastline waves could reach 2.64 trillion KWh. In other words, 64% of the total U.S. electricity generated in 2019.
With the ability to generate so much energy, companies are racing to develop technology to capture it. The question is… which ocean power stock is going to come out on top?
Let’s look at the top ocean power stocks currently working on using the energy of the ocean for everyone.
1. Ocean Power Technologies (NYSE: OPTT)
- Market Cap: 109.1 M
- Stock Price:$2.08
- 2020 Revenue:$ 1.2 M
First on our list, Ocean Power Technologies is a leader in wave power generation. Their technology is capable of converting ocean energy into usable green electricity. The renewable energy company has been making a name for itself through its advanced PowerBuoy system.
The PowerBuoy system uses the latest technology to generate, capture, store, and use natural energy from the ocean’s waves. And, the latest model, the PB3 PowerBuoy, uses wave energy to generate consistent power to keep the device running.
The technology can then send information back to remote locations, giving the company updates on the device’s state. Initially, it was designed for the U.S. Navy to supply power and proved its durability lasting through Hurricane Irene.
The ocean power stock is making a splash with the company’s latest acquisition of 3Dent Technology. The move gives Ocean Power Technologies access to advanced offshore engineering capabilities. The buyout also gave OPTT stock a boost, climbing up over 100% on the year in February 2021.
Despite the positive news, Ocean Power Technologies stock has since tumbled, falling more than 20% on the year.
In 2020, the renewable energy company generated $1.2 million in revenue, a 28% decrease from the prior year. Management noted the revenue decline is due to higher costs and having to deal with projects because of Covid-19.
OPTT investors have a bright future ahead of them. Ocean Power Technologies are gaining traction in the renewable energy industry. The company’s latest acquisition should help them grow a new customer base and increase revenue.
2. Eco Wave Power Ltd. (NASDAQ: WAVE)
- Market Cap: 46.6M
- Stock Price: $8.33
- 2020 Revenue: N/A
Eco Wave Power is also on a mission to harness energy from the ocean and convert it into green electricity. The Swedish renewable energy company is a relatively new company being founded in Israel in 2011.
Eco Wave Power already has several patents for their technology and has several more projects in the pipeline. The innovative technology uses a simple designed mechanism that attaches to any man-made structure. As the waves crash against the “floaters,” they stay afloat, raising the levers in a sort of “pumping” action.
This action is what generates clean energy. This process is cost-effective and allows the company to set the devices up in convenient locations. Since the floaters are attached to structures, it allows for easy maintenance if needed.
The technology is operational through a Power Purchase Agreement (PPA). Essentially, the device is connected to the grid, allowing them to generate energy and then distribute it to buyers.
Although the company went public in July, the latest earnings release shows the company is slowly starting to generate revenue. In the first half of 2021, Eco Wave Power produced $31,000 in revenue from a feasible study.
The renewable energy company has several exciting developments that investors have to look forward to soon. At the Port of Jaffa, in Israel, Eco Wave Power finished the concrete reinforcement, which allows them to install floaters. Eco Wave also just established a subsidiary in Portugal. This will allow the company to expand and set up the renewable energy technology in the country.
3. Carnegie Clean Energy Ltd (OTCMKTS: CWGYF)
- Market Cap: 33M
- Stock Price: $0.0019
- 2020 Revenue: $60,955
Next on our list of ocean power stocks is Carnegie Clean Energy. Formerly known as Carnegie Wave Energy, the Australian-based company changed its name to Carnegie Clean Energy in 2016. The change accents the addition of other forms of renewable energy the company produces and sells. On top of ocean energy, Carnegie Clean Energy sells solar electricity and the battery systems to go with it.
Carnegie uses a unique technology, named after the Greek sea goddess, CETO. The technology stays fully submerged underneath the ocean, and with the help of a buoy system, bobs with the waves. The back and forth motion creates a power take-off (PTO) system, converting the motion into usable green energy.
The ocean power company also has patented technology to protect the design from being copied. Carnegie’s technology is unique in that it stays fully submerged. You can’t see the device when it’s fully installed. Submerged technology can be beneficial because you can install it just about anywhere. But, to provide maintenance, you will still need to reach the devices.
The company is not yet profitable as its technology is still being developed and deployed. In its Q4 update, the company noted they are making “good progress towards cost reduction and performance targets to support CETO commercial pathway.”
Diversifying Your Portfolio With Ocean Power Stocks
Although these ocean power stocks are smaller companies, they are making massive progress in harnessing energy from the ocean. The ocean is in constant motion because of the sun/moon’s gravitational pull. This means the potential to capture its energy is limitless.
Waves can be created by either a) the wind or b) the sun/moon’s gravitational pull. When a wave is developing, it’s passing energy along. Ocean power stocks are developing innovative technology to pull in this energy, store it, and distribute it as necessary.
It’s clear that clean energy in the U.S. is on a rapid uptake. Solar, wind, and renewable energy in general, is my “best investment thesis for the next decade”. It’s growing rapidly, while other energy investments, oil, gas, and nuclear are going nowhere fast. – David Fessler, Engineering Strategist of The Oxford Club
Renewable energy companies are changing the world around us as we know it. They are providing a sustainable way of generating energy that can be used for many generations to come. So, the more renewable energy we can use, the less we will have to rely on fossil fuels.
Finally, you don’t want to miss out on the latest emerging technologies. Besides ocean power stocks, there are many other exciting developments emerging every day! And there is no better place to stay up to date than our free Profit Trends e-letter. You’ll gain valuable insight into renewable energy, high growth technologies, and cannabis investing. Join today!
About Pete Johnson
Pete Johnson is an experienced financial writer and content creator who specializes in equity research and derivatives. He has over ten years of personal investing experience. Digging through 10-K forms and finding hidden gems is his favorite pastime. When Pete isn’t researching stocks or writing, you can find him enjoying the outdoors or working up a sweat exercising.