Energy is crucial to modern society. We cannot function without electricity (as every power outage demonstrates), and we rely on natural gas to heat our homes and oil to fuel our cars. Fossil fuels—coal, oil, and natural gas—currently supply the majority of our energy needs and will remain vital drivers of economic growth for years to come. Simultaneously, we are steadily transitioning towards low-carbon energy sources.
The following five stocks, spanning both traditional and low-carbon energy sectors, show significant growth potential in the coming decades:
Bloom Energy produces the Bloom Energy Server, a distributed generation platform that utilizes proprietary solid oxide technology to convert natural gas, biogas, or hydrogen into electricity. This provides customers with a resilient power supply. This scalable technology can serve as both a backup power system and a primary power source. As founder and CEO KR Sridhar stated in their first-quarter earnings, “Looking ahead, the world needs electricity, and electricity demand is expected to continue growing, driven by AI, data center needs, and industrial electrification. Bloom Energy is well-prepared to serve these markets.”
Kinetik Holdings is a midstream energy company focused on the Permian Basin. It possesses an extensive natural gas gathering system in the region and holds interests in several long-haul pipelines that transport Permian products to the Texas Gulf Coast. The increasing natural gas demand and rising production in the region are expected to continue driving Kinetik’s strong growth. The company can consistently invest capital to expand existing systems and make bolt-on acquisitions, achieving continuous growth that supports its high dividend (with a yield exceeding 7%).
NuScale Power is dedicated to bringing Small Modular Reactor (SMR) technology to the global energy market. SMRs are small nuclear reactors built in factories, promising savings in construction costs and time. The company currently has over a dozen fully factory-built modules in production and is collaborating with partners to commercialize this technology. NuScale Power sees a vast market opportunity for SMRs, particularly in helping to meet the massive and growing electricity demand from data centers.
Oklo is developing fast fission power plants that utilize uranium more efficiently than traditional nuclear power plants. The company is constructing its first Aurora power plant, which is anticipated to begin operations in late 2027 or early 2028. Funded by OpenAI’s Sam Altman, Oklo has signed commercial agreements to sell electricity generated by the Aurora plant to customers such as data center operator Switch and oil and gas producer Diamondback Energy.
QuantumScape is committed to revolutionizing energy storage by creating superior batteries. Their solid-state lithium-metal battery technology promises faster charging speeds and enhanced safety compared to traditional lithium-ion batteries. Earlier this year, the company began shipping its first battery samples to potential customers. QuantumScape estimates that the annual demand for solid-state batteries will exceed 1 terawatt-hour by 2040, calling it a “huge opportunity and a challenge worth pursuing.”
