If the legislative proposal passes Congress, it’s poised to unleash billions in spending on the energy sector alone — and those federal funds are sure to catalyze other spending as well.
In all, Biden’s plan proposes $750 billion in energy spending, including $400 billion to extend tax credits for wind, solar and other clean sources, $100 billion for the electric grid, and $60 billion on energy research and development among other projects, according to a BloombergNEF analysis.
Potential winners range widely from makers of electric charging stations, such as EVBox BV, to hydrogen fuel cell companies such as Bloom Energy Corp., among others.
“These are the companies in the various sectors we cover that appear to benefit from U.S. infrastructure spending because they already do business in U.S. infrastructure or have expressed a desire to do so,” said Stephen Munro, a BNEF policy analyst.
One wrinkle: some of the obvious candidates aren’t based in the U.S. Munro cautioned that it remains to be seen if the Biden administration will allow foreign-based corporations equal access to federal infrastructure funds.
Here are the some of the energy companies seen as most likely to benefit, according to an analysis by BNEF.
Electric Vehicle Charging Companies
Biden’s infrastructure package calls for $174 billion in spending to accelerate the nation’s shift toward electric vehicles with the centerpiece being a plan to construct half a million charging stations through grants to state and local governments and the private sector.
EVBox BV, an Amsterdam-based EV-charging station designer and Zurich, Switzerland-based ABB Ltd. EV charger maker are among the top companies that stand to benefit, according to BNEF.
Battery Storage Companies
Biden’s ambitious plan to achieve a carbon-free electricity system by 2035 would require massive battery deployment. His infrastructure proposal calls for the creation of a tax credit for grid-scale batteries, along with other policies the U.S. Energy Storage Association, a trade group, said would help achieve a goal of 100 gigawatts of energy storage by 2030.
Among the energy storage companies that are best-positioned to benefit is China-based battery maker Contemporary Amperex Technology Co., Limited. and energy storage technology provider Fluence, a unit of energy storage giants Siemens AG and AES Corp, BNEF said.
However, Munro, the BNEF analyst, cautioned that it remains to be seen if the Biden administration will allow foreign-based corporations equal access to federal infrastructure funds.
Hydrogen Fuel Cell Companies
Energy companies are increasingly eyeing hydrogen as a possible carbon-free fuel and it is seen as a clean solution for fueling cars, trucks and ships and heating buildings. Biden’s infrastructure plan calls for billions of dollars in spending on demonstration projects that include hydrogen.
“Hydrogen itself remains a very high-cost form of energy and the challenge for hydrogen is going to be getting the cost of producing it down,” said Munro. “What needs to happen first is there needs to be both private and federally funded research and development into hydrogen.”
Canada-based hydrogen fuel cell maker Ballard Power Systems Inc. and San Jose, California-based Bloom Energy Corp. stand to benefit, BNEF said.
It may seem counterintuitive given the infrastructure package’s green leanings, but pipeline companies also stand to benefit, according to BNEF. For one thing pipelines will still be needed to carry natural gas, which has about half the carbon dioxide emissions of coal, to power plants in the East and Pacific Northwest coasts, said Munro. In addition, new pipelines will be needed to meet Biden’s call for more carbon capture and sequestration, Munro said.
Pipeline operator Enbridge Inc. and Energy Transfer LP stand to benefit, BNEF said.