The blue economy is on the rise, which makes investing in ocean tech stocks more appealing over time.

Ocean tech stocks are companies creating products and solutions tied to the oceans regarding energy, water treatment and marine discovery. These firms provide new and creative answers to environmental problems and support the conservation of the ocean’s assets. Holding such stocks allows the investor to gain exposure to a promising sector, given the rising focus on sustainability and technological innovation.

Ocean tech companies are now more interested in deriving energy from ocean waves and currents. The global need for renewable energy is increasing because of government regulations on carbon footprints and the use of electric cars. Thus, the exploitation of ocean energy is essential.

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So, if you are bullish on harnessing the ocean to help reduce the world’s carbon emissions, here are three ocean tech stocks to consider.

Ocean Power Technologies (OPTT) a light buoy in the middle of the ocean. OPTT stock

Source: Shutterstock

Ocean Power Technologies (NYSE:OPTT) specializes in harnessing the power of ocean waves.

I like OPTT stock because its PowerBuoy technology is ready to meet the demand for clean, efficient ocean energy and maritime applications. The PB3 PowerBuoy is the company’s leading product, harnessing wave power to produce electricity, thus providing a clean power source in offshore operations.

OPTT works very differently from other ocean tech stocks, which require static resources with limited use cases. This is because once the PowerBuoy is installed remotely and integrated with new technologies like the 5th Generation Network (5G), the uses and applications are endless, ranging from offshore oil and gas operations to maritime domain awareness and monitoring.

OPTT, as a company, is a penny stock with a market cap of around $33 million at the time of writing. Thanks to its disruptive technology and as a high-risk play, there could then be significant upside potential there.

Veolia Environnement (VEOEY) Veolia sign text and brand logo French company Environnement and supplier of water services in all world

Source: sylv1rob1 / Shutterstock.com

Veolia Environnement (NYSE:VEOEY) is a global leader in water treatment. The company is a critical player in shifting towards a more sustainable circular economy. Veolia’s water business segment ensures the effective management of water from the source through delivery and on to wastewater collection and treatment. This is especially handy in areas that are severely affected by water shortages, like the Middle East, where Veolia is involved in large-scale desalination projects.



In addition, Veolia’s waste management and recycling skills are now more valuable as more authorities and companies want to improve recycling rates and extract useful metals like lithium from discarded items.

I also see some potential growth markets for VEOEY stock in areas that lack access to a freshwater source, which is much of the developing world. Only around 3% of the world’s total water reserves are fresh water, making desalination projects vital for the most at-risk areas around the globe.

Clean Harbors (CLH)

America has a huge waste problem. It produced 290 million tonnes of waste in 2018, much of which was dumped in our precious oceans. This is why I am quite optimistic about the future of Clean Harbors (NYSE:CLH), one of the market leaders in hazardous waste management and recycling. The company’s waste treatment, recycling and disposal facilities are spread across North America.

The core services of Clean Harbors, such as hazardous waste incineration, liquids treatment and used oil re-refining, are critical in aiding industries and municipalities in getting rid of unwanted waste that could otherwise end up in oceans and rivers. This comes amidst increasing worldwide concerns about waste products and the adoption of more sustainable ways of waste disposal.

CLH is one of the more capitalized ocean tech stocks, at around 9 billion. The market also values its earnings growth highly, as it trades for 32x earnings. This makes sense, given that analysts forecast that its EPS will make double-digit gains over the next three years. All in all, CLH could be one of those ocean tech stocks to consider.

On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.

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