What You Should Know Before Investing in Bioenergy Stocks

In recent years, there has been a gradual shift that has seen people paying extra attention to biomass energy and more environmentally friendly options, which has filtered down to their lifestyle choices as well. However, this is not to say that it is a relatively new concept, as bioenergy is said to be one of the world’s oldest sources of energy. Although initially, it did not lead to many benefits or returns for investors, that has been improving. In 2021, particularly, reports have noted that the industry is starting to find its footing and entrench itself as one worth investing in.

Through the use of technology and key differentiators, many industry players are fast attracting investors and highlighting the competitive advantage that the industry holds over other less sustainable alternatives. In light of this, one might argue that investing in bioenergy may prove to be a viable sustainable forex trading option, given that the industry has been showing a certain level of growth and may possibly reach new heights in years to come.

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Investing in bioenergy stocks

Before investing in biomass energy stocks, however, it is worth noting that it is generally a more expensive energy source to produce. Additionally, naysayers have highlighted that it requires a lot of wood from natural forests, which some people will ultimately lead to deforestation. Although generally championed as the more environmentally friendly alternative, writings on the matter claim that if the wood is not fully burnt, it can result in particles that contribute to air pollution.

These are perhaps some of the reasons behind the initial hesitance to invest in biomass energy. On the upside, bioenergy is a great way to repurpose waste and it can be stored with minimal energy loss.

Penny stocks and economies

Given that most of the biomass energy companies are listed on stock exchanges, it is therefore true that the decisions that investors make on the stock market will affect the prices and availability of commodities in global economies.

Having an understanding of this can better guide and inform your decisions as an investor on how to trade stocks or commodities. These include penny stocks, which can be defined as common shares of small public companies that trade for less than one dollar per share. In light of the activity that the bio energy industry has been experiencing, it is no surprise that there is correlating activity amongst penny stocks.

bioethanol india

As at July 2021, listed amongst some of the best energy penny stocks that you might want to consider investing in were Southwestern Energy, Transportadora de Gas, Taronis Fuels and Denison Mines. Of these, Taronis Fuels is described as a global industry player that produces renewable and socially responsible fuel products. It is also said to have a high liquidity and trades more than 160 829 shares per day. Southwestern Energy is described as one of the largest natural gas and natural gas liquid providers in the US. To provide an indication of its activity and investor confidence, it reportedly trades more than a whopping 3.7 million shares per day.

About Salman Zafar

Salman Zafar is the CEO of BioEnergy Consult, and an international consultant, advisor and trainer with expertise in waste management, biomass energy, waste-to-energy, environment protection and resource conservation. His geographical areas of focus include Asia, Africa and the Middle East. Salman has successfully accomplished a wide range of projects in the areas of biogas technology, biomass energy, waste-to-energy, recycling and waste management. Salman has participated in numerous national and international conferences all over the world. He is a prolific environmental journalist, and has authored more than 300 articles in reputed journals, magazines and websites. In addition, he is proactively engaged in creating mass awareness on renewable energy, waste management and environmental sustainability through his blogs and portals. Salman can be reached at salman@bioenergyconsult.com or salman@cleantechloops.com.
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