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Investment Opportunities

3 Best Ammonia Stocks to Watch

3 Best Ammonia Stocks to Watch
  • PublishedAugust 9, 2022

Ammonia is vital for helping with our food production. And since we all need to eat, demand should remain high. This is just one reason I’ve tracked down the best ammonia stocks.

To start, let’s take a closer look at ammonia and the industry as a whole. This top down approach can help with finding better ways to invest. Then from there, we’ll dive into the best ammonia stocks and company highlights. Without further ado…

ammonia stocks

Why Invest in Ammonia?

Ammonia is a compound of nitrogen and hydrogen. It has a wide range of uses. You can find it in cleaning supplies, as a refrigerant gas and for purification of water. We also use it to help make plastics, explosives, textiles, dyes and other chemicals.

It’s a versatile compound but the bulk of it goes towards agriculture. We use roughly 80% of ammonia in fertilizer. And as the world population continues to climb, ammonia demand should move higher as well. This bodes well for the best ammonia stocks.

On top of that, there’s a push to improve green ammonia production. A lot of ammonia comes from processing fossil fuels. Although, there are other ways to produce it sustainably. And as more people, companies and governments shift to zero carbon emissions, this could benefit the companies below.

Once you’ve checked out the best ammonia stocks, here are some water and agriculture stocks as well. Food and commodities can produce great returns for investors.

Best Ammonia Stocks

  • CF Industries Holdings (NYSE: CF)
  • AmmPower (OTC: AMMPF)
  • FuelPositive (OTC: NHHHF)

CF Industries Holdings

CF Industries Holdings is an American fertilizer business. It has manufacturing in the United States, Canada and the United Kingdom. It also reaches much further with the ability to ship its product to six continents.

The company produces close to 10 million tons of ammonia annually. And it sells a portion of the ammonia directly to agricultural or industrial customers. With the remaining ammonia, it uses it in other products, such as urea, UAN and diesel exhaust fluid.

CF Industries is also decarbonizing its network. The company is committed to scaling its ability to produce green and blue ammonia. And this is positioning CF Industries at the forefront of clean hydrogen and ammonia supply.

AmmPower

AmmPower is a small company and this ammonia stock comes with more risk. It’s well within the penny stock category and trading volume is low. Nonetheless, the company gives investors an early investing opportunity.

The company is based in Canada and it focuses on production of green ammonia. AmmPower is developing technologies to produce green ammonia and hydrogen at scale. It’s investigating catalytic reactions to bring down costs.

AmmPower isn’t generating sales right now but it’s making progress. It holds several letters of intent with ports in Brazil and the United States. It’s also manufacturing IAMM™ units to create green ammonia for the agricultural industry. On top of that, AmmPower holds a lithium exploration property in Quebec and an option on the Titan Property located in Ontario.

With EV batteries pushing lithium demand higher, those properties might lead to revenue down the road. And here are some more established lithium mining stocks as well.

FuelPositive

FuelPositive is another small Canadian company. It’s based in Toronto and also hasn’t generated any sales. But it’s growing and developing some promising projects…

FuelPositive’s flagship product is a green ammonia production system. And it’s for use across a broad spectrum of industries and applications. Earlier this year, the company announced its first demonstration project partner. And this month, it announced pre-sales and its selling price in preparation for the demo project launch.

These are big steps and great for investors to see. FuelPositive’s green ammonia production system units are modular, scalable and portable. If this first big project goes well, we should see solid sales in the years ahead. And on top of that, the company hopes to obtain carbon credits and additional revenue for future growth.

Investing Beyond Ammonia Stocks

The ammonia stocks above give investors some good opportunities. Although, there are many other companies and industries to consider. For example, here are some vertical farming stocks.

There are some huge trends underway and new technologies to profit on. Although, the market is always moving and the best opportunities come and go. For recent market updates and investing ideas, check out these investment newsletters. You can sign up for free and learn from various investing experts.

Written By
Ben Broadwater