The coming decade will be defined by several major macro themes for investors. Perhaps foremost among them will be derivative themes related to the massive job of transitioning away from our collective addiction to fossil fuels.
The job is enormous because it entails a complete reshaping of how we relate to the concept of energy.
Many analysts have come out with different roadmaps for how we can collectively navigate this process. But most see a substantial factor being transition technologies. This won’t happen overnight. And mismanaging the process threatens to leave us navigating a global depression with oil at $300/bbl. If we simply quit investing in oil and gas production over coming years as global demand rises and new technologies aren’t able to fully take up the slack, that’s exactly where we will be.
One of the most exciting options to help manage this process is Carbon Capture – the sequestration and storage of collateral carbon emissions that come as a byproduct of the use of fossil fuels.
Elon Musk offered $100 million as a prize for innovations in this arena last year. Other organizations, including the Canadian government, have jumped on board as well with major capital earmarks.
If you have to have oil and gas as part of the equation during the “great transition”, and you have to mitigate the consequences of that obligation to the greatest possible extent, then carbon capture is almost certainly going to be a substantial piece of the puzzle.
That said, the entire process will create powerful growth opportunities for stocks involved in alternative energy production, smart grid innovations, and carbon mitigation, until we finally get free of the addiction.
That presents a powerful tailwind for stocks tethered to these themes, including Equinor ASA ADR (NYSE:EQNR), Brookfield Renewable Partners L.P. (NYSE:BEP), Bloom Energy Corp. (NYSE:BE), First Solar Inc. (Nasdaq:FSLR), Enphase Energy Inc. (Nasdaq:ENPH), Sunrun Inc (NASDAQ:RUN), and Stem Inc. (NYSE:STEM).
But speculators looking for the lotto ticket small-cap opportunity in this process might want to take a closer look at an OTC stock that has been outperforming the market over the past few weeks after making further strides toward a big role in the carbon capture story: Viking Energy Group Inc. (OTC US:VKIN).
VKIN trades on the OTC. But it is also an oil and gas play with proven assets valued at over $96 million spread across Kansas, Missouri, Texas, Louisiana, and Mississippi.
In other words, this is no fly-by-night pipe-dream play with no tangible operations. The company is an established producer. But it’s also increasingly important in the carbon capture theme.
Viking Energy Group Inc. (OTC US:VKIN) entered into an Exclusive Intellectual Property License Agreement with ESG Clean Energy last fall regarding ESG’s patent rights and know-how related to stationary electric power generation, including methods to utilize heat and capture carbon dioxide.
The ESG Clean Energy System is designed to generate clean electricity from internal combustion engines and utilize waste heat to capture ~ 100% of the carbon dioxide (CO2) emitted from the engine without loss of efficiency, and in a manner to facilitate the production of precious commodities (e.g., distilled/ de-ionized water; UREA (NH4); ammonia (NH3); ethanol; and methanol) for sale.
That story was updated this month with news that the company was issued a new patent (No. 11,286,832) by the U.S. Patent & Trademark Office in connection with the intellectual property and other rights licensed from ESG.
The new patent reportedly covers the invention of an “exhaust-gas-to-exhaust-gas heat exchanger” that efficiently cools – and then reheats – exhaust from a primary power generator so greater energy output can be achieved by a secondary power source with safe ventilation. Another key aspect of the new patent is the development of a carbon dioxide capture system that utilizes the waste heat of the carbon dioxide pump to heat and regenerate the adsorber that enables the CO2 to be safely contained and packaged.
Nick Scuderi, President of ESG, commented, “Acquiring this patent greatly expands our ability to better capture carbon – and use it to make something beneficial – whenever natural gas is used to produce electricity. It’s very important progress for a world that’s forced to still depend on fossil fuels while trying to meet new emissions standards. Until the renewable power industry can meet the rising global power demands, this technology addresses that challenge tremendously.”
Viking Energy Group Inc. (OTC US:VKIN) CEO and President, James Doris, added, “We are well positioned to assist with the power generation needs of commercial and industrial organizations while at the same time helping them reduce their carbon footprint to satisfy regulatory requirements and follow best ESG-practices. The recent advancement and progress with respect to the ESG’s clean energy system is timely as it aligns with the Canadian government’s recently announced 2030 Emissions Reduction Plan.”
VKIN has been launching higher in recent action, with shares rapping as much as 60% over the past week. Meanwhile, the S&P is down, and the energy sector is basically sideways. In addition, VKIN is up on the year in 2022 while most the market has been correcting and many growth names are deep in the red.
While the movement of any given stock is hard to explain and many factors are involved, markets tend to be efficient information processing machines. And the action in VKIN could be a sign that the company’s prospects are rapidly improving as it nails down its ties to one of the most important themes to likely define the macro picture around the next corner.
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