Two Sustainable Energy Shares to Acquire in 2025 and Keep for Multiple Decades
In the wake of economic turbulence and government spending constraints, numerous renewable energy stocks have taken a hit. However, with the macro environment stabilizing, these stocks could witness a significant resurgence. The International Energy Agency (IEA) anticipates adding over 5,500 gigawatts of renewable energy capacity between 2024 and 2030, nearly tripling the amount added from 2017 to 2023. This projected expansion suggests ample opportunities for investors.
Two potential plays in this green revolution are NuScale Power and CleanSpark.
The Mini Nuclear Masters: NuScale Power
NuScale Power is renowned for producing the only small modular reactors (SMRs) certified by the U.S. Nuclear Regulatory Commission (NRC). Its SMRs can be easily deployed in vessels, reducing costs and construction time compared to traditional nuclear reactors. The company's current SMR reactor clusters are certified for up to 55 megawatts of electricity, but NuScale is eager to increase this capacity to 77 megawatts to make its facilities more cost-effective.
While NuScale's stock has surged significantly over the past year, analysts expect only a modest revenue increase of 4% to $24 million in 2024. However, from 2024 to 2026, revenues are predicted to grow at an astounding 268%, surging to $321 million. Though NuScale's enterprise value of $2.1 billion might seem high, given its projected sales for 2026, its first-mover advantage in the nascent SMR market leaves room for impressive growth.
The Green Bitcoin Miners: CleanSpark
CleanSpark developed microgrids for various renewable energy sources, but its acquisition of ATL Data Centers in May 2021 transformed it into a Bitcoin miner. It subsequently upgraded its facilities' efficiency, showcasing the feasibility of mining Bitcoins with low-carbon energy.
In 2024, CleanSpark mined 7,024 Bitcoins, selling some for cash and keeping others worth $947.9 million. Its operating hash rate, which gauges its mining efficiency, surged by 288% to 39.1 EH/s (exahash per second). Despite its revenue and adjusted EBITDA surging 125% and nearly tenfold to $379 million and $246 million, respectively, CleanSpark's stock remains undervalued at eight times this year's adjusted EBITDA.
To secure your investment in renewable energy stocks, be mindful of market trends, company performance, and the overall macroeconomic landscape. With the IEA forecasting impressive renewable energy capacity expansion, now could be the ideal time to consider these forward-thinking companies.
Consideringthe forecasted expansion of renewable energy capacity by the International Energy Agency, investing in companies like NuScale Power and CleanSpark could yield substantial returns. NuScale Power, with its certified small modular reactors and growth projections, presents an opportunity for investors looking to capitalize on the mini nuclear market's potential. On the other hand, CleanSpark, transforming into a Bitcoin miner and demonstrating efficiency in low-carbon energy mining, offers an intriguing play in the digital currency and renewable energy sectors.
