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Cleantech Investing
10 ASX Cleantech Stocks
Apr. 01, 2024 01:30PM PST
What are the cleantech stocks listed on the ASX? Here’s a deeper look at the burgeoning cleantech industry in Australia.
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Clean technology covers a number of industry sectors, such as low-emission technologies, renewable energy, water and wastewater technologies and waste and resource efficiency.
“The clean energy economy is a major industrial sector and an important contributor to the global economy,” according to the International Energy Agency. In its latest report, the organisation states that clean energy investment increased nearly 50 percent between 2019 to 2023 to reach an impressive US$1.8 trillion in 2023.
Australia’s cleantech arena is also performing with strength, as per the Deloitte Australia CleanTech (DACT) Index, which offers a quarterly review of cleantech stocks listed on the ASX. The companies included in the index range across renewable energy, energy efficiency, sustainable minerals, energy storage, battery minerals and water treatment.
With the positive outlook for cleantech in mind, here’s a look at 10 ASX cleantech stocks tracked by the DACT Index. Companies are listed in order of largest to smallest by market cap, and all figures were current as of March 20, 2024.
1. Reece (ASX:REH)
Market cap: AU$17.19 billion; share price: AU$27.73
Reece is a global leader in wholesale, import and distribution for plumbing, waterworks and HVAC-R products in Australia, New Zealand and the US. Through the Reece Foundation, the company helps connect the trade sector to communities that are in need of clean water and sanitation.
During the latest quarter, the company was one of the two strongest performers in the DACT water sub-index, along with Reliance Worldwide. It was also the top positive contributor to the index.
2. Meridian Energy (ASX:MEZ)
Market cap: AU$13.86 billion; share price: AU$5.36
Meridian Energy is New Zealand’s largest electricity generator, with five wind farms, seven hydro power stations and commercial solar arrays.The company is building out a new wind farm in Harapaki, which will be New Zealand’s second largest wind farm. The company also designed and built the Ross Island wind farm, which is located in Antarctica.
Meridian was one of the top positive contributors to the DACT Index during the most recent quarter.
3. Pilbara Minerals (ASX:PLS)
Market cap: AU$11.74 billion; share price: AU$3.90
Pilbara Minerals is one of Australia's largest lithium companies by market cap. Its flagship asset is the Pilgangoora project — located in the Pilbara region of Western Australia, it produces spodumene and tantalite concentrate.
Pilbara is working on multiple expansion projects at Pilgangoora, and is targeting a spodumene production increase at the site to 1 million tonnes per year. The company has long-term agreements with China’s Ganfeng Lithium (OTC Pink:GNENF,SZSE:002460), Great Wall Motor Company (OTC Pink:GWLLF,HKEX:2333), Yibin Tianyi and General Lithium.
4. Arcadium Lithium (ASX:LTM)
Market cap: AU$10.36 billion; share price: AU$6.92
Another of Australia's top lithium producers, Arcadium Lithium is also one of the world's largest lithium companies, with operations and development projects across the Americas, Asia and the UK. Formed out of the recent US$10.6 billion merger between Allkem and Livent, it has a production capacity of 248,000 tonnes of lithium carbonate equivalent per year.
Arcadium Lithium produces a wide range of lithium chemicals products derived from hard-rock mining, conventional pond based brine extraction, direct lithium brine extraction and lithium chemicals manufacturing.
5. Mercury (ASX:MCY)
Market cap: AU$8.97 billion; share price: AU$6.45
Mercury is a New Zealand-based gas, renewable electricity and internet provider.
The company's electricity generation comes from a variety of renewable energy sources, including wind, hydro and geothermal. Mercury's nine hydro stations are responsible for an average of 10 percent of New Zealand’s annual electricity supply. It also operates five geothermal plants and five wind farms, including the country's largest.
The company was one of the top positive contributors to the DACT Index during the latest quarter.
6. Contact Energy (ASX:CEN)
Market cap: AU$6.16 billion; share price: AU$7.80
Contact Energy provides electricity, natural gas, broadband, solar and renewable energy. It owns and operates 11 power stations and produces 80 to 85 percent of its electricity from its renewable hydro and geothermal stations.
The company was the highest of five New Zealand firms to land on the 2023 Dow Jones Sustainability Index Asia-Pacific. It was also the winner of Deloitte's sustainability leadership award for leading decarbonisation efforts through its Contact26 strategy, which includes a more than $1.2 billion investment in renewable generation projects.
7. Cleanaway Waste (ASX:CWY)
Market cap: AU$5.77 billion; share price: AU$2.59
One of the biggest companies in Australia's waste sector, Cleanaway Waste is an end-to-end e-waste recycler with 250 branches nationwide. It was one of the top positive contributors to the DACT Index during the most recent quarter.
Cleanaway Waste is well positioned to offer solutions to the country’s plastic waste challenge, as well as its need to become waste self-sufficient after China’s ban on recycling material from Australia.
8. Reliance Worldwide (ASX:RWC)
Market cap: AU$4.5 billion; share price: AU$5.69
Reliance Worldwide designs, manufactures and supplies high-efficiency water flow and control products. The company is also a global leader in the manufacturing of push-to-connect behind-the-wall plumbing fittings.
As its name suggests, Reliance's footprint is worldwide, with 29 distribution hubs, 14 manufacturing plants and five innovation centres across the Americas, Asia-Pacific, Europe, the Middle East and Africa.
Along with Reece, the company was one of the two strongest DACT water sub-index performers for the period.
9. Sims (ASX:SGM)
Market cap: AU$2.33 billion; share price: AU$12.07
Sims Metal, a business division of Sims, has established itself as an integral part of the circular economy through buying and recycling scrap metal, including ferrous and non-ferrous metals. The company has more than 200 processing facilities in the US, United Kingdom and Australasia.
On its website, Sims Metal states that its mission is to "create a world without waste to preserve our planet, is what drives us to constantly innovate and offer new solutions in the circular economy for consumers, businesses, governments and communities around the world."
10. Nanosonics (ASX:NAN)
Market cap: AU$811.76 million; share price: AU$2.68
Nanosonics is an infection-prevention company that has commercialised automated disinfection technology. Its Trophon technology, which includes an ultrasound probe high-level disinfection device, is primarily sold to hospitals.
Nanosonics is currently working to bring CORIS, its new endoscope reprocessing platform, to market. The CORIS technology platform seeks to address one of the biggest unmet needs: the reprocessing of flexible endoscopes.
This is an updated version of an article first published by the Investing News Network in 2019.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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