There’s a new exclusive report out in The Wall Street Journal titled “AI Could Trigger New Demand for Carbon-Removal Sector” – which should ring a bell for those of you who read our recent deep dive on artificial intelligence (AI) power demand with Barchart’s Senior Market Strategist John Rowland, CMT.
…carbon capturing is going to come to the forefront soon. Google wants to get to carbon neutral... but if they're simultaneously building this power station that’s billowing up CO2 at the same rate as San Francisco, how do they get to carbon neutral?
So maybe the next trade includes companies that do carbon capture or smokestack scrubbing, like Chart Industries (GTLS) or Occidental (OXY).
2 Types of Carbon Capture Trades
Rowland says that “the carbon capture, utilization, and storage (CCUS) sector is shifting from a speculative ‘frontier’ into a massive industrial build-out.
“There are two types of players,” he notes. “First, you have industrial giants who are leveraging existing infrastructure for large-scale build-outs. Then, there are the technology specialists focused on driving down the cost-per-ton of carbon removal.”
One critical theme emerging out of this narrative is the “Power Wall,” says Rowland – which is the collision point between energy grid constraints and massive AI data center power demand.
“Companies that can provide ‘carbon-free’ power or on-site capture for data centers are positioned to capture significant near-term demand,” predicts our Market on Close host.
John’s Carbon Capture Watchlist
You’ll find all of these companies represented on John Rowland’s Carbon Capturing Watchlist, so be sure to check out this exclusively curated list to research, screen, and filter for your favorites.
“If I were to pick two, it would be OXY and LIN,” says John. “Turns out Warren Buffett might be crazy as a fox; OXY was his last major acquisition, though many folks have been lambasting him for it.”
