- This year marks the first virtual TSX Cleantech Investor Day—an institutional investor-focused series showcasing Canada’s exciting companies in the sector
- The day is a major opportunity to catch onto sustainable trends revolutionizing the world’s climate and economy
- The S&P/TSX Renewable Energy and Clean Technology Index has been one of the best performing indices over the past 18 months
- Learn about the five featured companies and their investment highlights
Cleantech is a popular buzzword, and in recent years, it’s only risen in prominence. But like many buzzworthy concepts, its meaning has become oversimplified and misunderstood. Many of us think of solar, wind and hydro when we hear the term. However, the cleantech sector is much larger—and more complex—than it might seem.
It encompasses new technologies such as more efficient boilers, planting techniques and even satellites that can detect methane emissions from space. According to Export Development Canada (EDC), “Annual worldwide spend on cleantech development is expected to be about USD $2.5 trillion” by the end of this year, so there’s plenty to be optimistic about.
TMX Group presents TSX Cleantech Investor Day
Canada’s cleantech energy sector is crucial to the country’s economy, employing close to 300,000 people with the potential to add 160,000 new positions over the next decade. What’s more, annual investment in the sector has grown from $21 billion in 2010 to $35.3 billion over that same time period.
The growth in this sector can be appealing to investors as they can become part of the growing global trend to help the world be more environmentally conscious. Many of the innovative technologies present growth opportunities and offer ways for investors to move away from fossil fuels or other traditional modes of energy production.
Building off of the growing importance of the sector, TMX Group is proud to host its first virtual TSX Cleantech Investor Day, highlighting both public and private companies and giving them the opportunity to tell their story to a broad range of representatives from capital markets.
TSX Cleantech Investor Day’s most promising featured companies
The S&P/TSX Renewable Energy and Clean Technology Index has been one of the best performing indices over the past 18 months. Following a 36 percent return in 2019, the index is up 23 per cent through July 31, 2020.
This year's TSX Cleantech Investor Day is showcasing five companies from the sector, representing a broad range of service and product offerings at varying stages of development. Here is the list of companies:
Ballard Power Systems (TSX: BLDP | NASDAQ: BLDP)
Ballard Power Systems designs and manufactures fuel cell power systems, built on zero-emission technology that provides propulsion power for transportation vehicles as well as stationary applications.
“The global trends toward decarbonization, cleaner air quality and electrification of vehicles have converged over the past year or two to create a tremendous amount of interest in clean energy solutions to the climate crisis—and, this is where Ballard fits,” explains Guy McAree, Director of Corporate Communications and Marketing.
“The world is now rightly focused on clean technologies to address the challenges of the climate crisis. Ballard is very well-positioned to tackle this issue with proven products and leading field experience.”
In Q2 Ballard delivered revenue of $25.8 million, gross margin of 21 per cent and ending cash reserves of $170.3 million.
He adds, “Our focus today is on the heavy- and medium-duty motive markets for bus, commercial truck, train and marine vessels—which disproportionately contribute to emissions—and with a very large longer-term opportunity for passenger cars and off-road vehicles.”
Vive Crop Protection is the first company that combines the promise of more sustainable pesticides with quantifiable results for growers.
“Consumers want and are willing to pay for more sustainable agriculture, but growers/farmers need performance from the products and technologies that they use. We improve the sustainability of the products they already know and trust, while also giving them new solutions that create real, quantifiable ROI,” notes Darren Anderson, CEO, Vive Crop Protection.
“There is a huge appetite for innovation in agriculture. Growers today are exploring precision application technologies like drones, data and analytics to maximize their productivity and efficiency, and new agricultural practices to sequester carbon.”
Vive and A&LBiologicals @ALCanadaLabs announce collaboration to develop effective new biopesticide products using Vive’s patented Allosperse nanotechnology delivery system and A&L’s novel microbial based bio-pesticide technologies. https://t.co/uvFtkG7FLY pic.twitter.com/l7uol7F2tp— Vive Crop Protection (@ViveCrop) September 1, 2020
“When these tools are combined with precision chemistry like ours that can combine sustainable pesticides with quantifiable results, there is an enormous opportunity to change how our food is produced in a really positive way.”
In July, Vive was named one of Canada’s future economic stars as part of the MaRS Momentum program.
Nano One Materials Corp. (TSXV: NNO | OTC-Nasdaq Intl Designation: NNOMF | Frankfurt: LBMB)
Nano One Materials has developed patented technology for the low-cost production of high-performance lithium-ion battery cathode materials used in electric vehicles, energy storage and consumer electronics.
“Our processing technology enables lower cost feedstocks, simplifies production, and advances performance for a wide range of cathode materials used in electric vehicles, energy storage and consumer electronics,” explains Dan Blondal, CEO and Founder of Nano One Materials.
“Nano One has built a demonstration pilot plant and is pursuing high margin licensing and joint venture opportunities with global leaders including Pulead Technology and Volkswagen for large growth opportunities in e-mobility and renewable energy storage applications.”
When it comes to his view on cleantech trends, Blondal notes, “The cleantech sector has a bright future, powered by ESG investment imperatives, increasingly large retail investor base and government backed initiatives to nationalize supply chains. All of this will be bolstered by post-COVID infrastructure spending aimed at jump-starting economies around the world.”
“Nano One is already benefiting from several trends, having completed an $11 million financing in February of this year along with close to $8 million in non-dilutive government funding grants awarded to us in the last year.”
The continued improvement in technology and cost efficiency has led to exponential growth in the lithium-ion battery market. Rechargeable lithium-ion batteries have become ubiquitous across a broad spectrum of products and industries, including mobility applications, consumer electronics and energy storage—driving global production capacity to increase by 500 per cent since 2010.
Li-Cycle is at a very exciting point in its growth trajectory. Today, the company is the largest commercial lithium-ion battery recycler in North America and is actively taking steps to grow its international footprint.
With a growing quantity of end-of-lifecycle batteries set to become available for recycling, Li-Cycle estimates that the annual global quantities of lithium-ion batteries available for recycling will grow from approximately 150,000 tonnes per year in 2020 to over 3,700,000 tonnes per year in 2030—the battery recycling market alone is estimated to hit USD$23.2 billion by 2025.
Recognizing this global market opportunity, Li-Cycle is strategically locating its Spoke facilities close to the supply of spent lithium-ion batteries, which will enable the company to capture battery supply from various verticals, including electric vehicles, electronic waste and energy storage.
NanoXplore Inc. (TSXV: GRA | OTCQX: NNXPF)
NanoXplore is a manufacturer and supplier of high-volume graphene powder for use in industrial markets. The company is committed to a sustainable future and has dedicated its resources and knowledge towards this goal. They view graphene as the next evolutionary carbon-based material that can reshape our lives.
As this report on reinforced plastics from Science Direct notes, “Graphene can be used to enhance the mechanical, thermal, electrical and physical properties of plastics and composites. The addition of just small amounts of graphene to these materials can enhance their strength by over 30 per cent.”
Liam Farrell, CFA, Chief Commercial Officer at NanoXplore reinforces the promise of graphene in saying, “We are the pioneers in bringing graphene enhanced products to the market such as graphene enhanced composite light-weight parts for commercial vehicles, graphene enhanced plastic parts for agricultural industry, and soon graphene enhanced anodes for Li-ion batteries.”
“The current focus for the company is toward accelerating the adoption of our products. We have a strong pipeline of new customers and projects in multiple markets and applications and the resulting growth will be complemented with entry into the energy storage market with our innovative graphene anodes for Li-ion batteries.”
NanoXplore recently completed its private placement financing for $25,000,040.
Exciting opportunities ahead for cleantech investors
The public markets for cleantech have grown tremendously over the past five years. At the end of December 2015, the total market value for cleantech companies on TSX/TSXV was $29.5 billion. As of July 31, 2020, the total market capitalization has more than doubled, now sitting at $60.8 billion. This demonstrates the optimism in the sector and the potential opportunities for innovators, start-ups, entrepreneurs and businesses to develop new ideas to tackle climate change and help foster a greener environment.
Despite a tumultuous year, cleantech is alive and thriving. Investment opportunities abound and there is no better time to innovate than now.
It’s a crucial time for investors to get involved and be part of a massive revolution sweeping the globe.
To learn more about TSX Cleantech Investor Day and the economic importance of the sector, make sure you register for the event here.
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