Verdant Earth Technologies Faces Competitors in Renewable Energy

The cost of renewable energy is going down and governments and corporations are implementing new sustainability regulations with every turn. In this landscape, it’s only natural for companies like Verdant Earth Technologies to have competition.

With an IPO on the horizon, soon-to-be-public Verdant Earth Technologies isn’t facing the future of the energy sector alone. Here are the competitors to keep an eye out for as Verdant Earth prepares to go public.

After announcing that it was going public in the fourth quarter of 2021, Australian hydrogen and renewable energy firm Verdant Earth shared the next steps in its IPO process. On Jan. 6, the company publicly priced its offering at $50 million and shared additional listing details.

Despite going public, Verdant is still in the early stages of its operation. According to an SEC filing, “Our first two projects, Verdant HV Power Station and Verdant HV Hydrogen Project, are proposed projects that have not received regulatory approvals.”

Verdant Earth hopes to use proceeds from the IPO to fund a $100 million project that would recommission a power station in New South Wales, Australia, to use hydrogen-derived biomass energy. The power station formerly operated using coal and closed in 2014.

Verdant Earth is going up against the top renewable energy development companies across the globe. In Australia and New Zealand, the key competitors include:

• Environmental Clean Technologies (ASX:ECT)

• Pure Hydrogen Corp. (ASX:PH2)

• Sparc Technologies (ASX:SPN)

• Contact Energy Limited (ASX:CEN)

• Genesis Energy Ltd. (ASX:GNE)

In the U.S., the top competitors for Verdant Earth include:

• Daqo New Energy Corp. (NYSE:DQ)

• Renewable Energy Group Inc. (NASDAQ:REGI)

• SunPower Corp. (NASDAQ:SPWR)

In a way, Verdant Earth has a unique approach that many of its competitors can't compete with directly. The company buys up old coal-powered facilities and aims to transform them into renewable wonders that make regulators happy.

However, Verdant Earth's success hinges on its ability to surpass regulatory hurdles that it hasn't fully achieved yet. In the energy sector, price and capability are one thing, but governmental allowance is another. Even if (or, some might say, when) Verdant Earth does succeed, it’s going to be a while until the company is able to turn a profit. Shareholders should know that this is true impact investing. You're investing for the future impact that hasn't materialized yet.

Verdant Earth announced a share price range of $7–$9 each with 6.3 million shares. The sale would raise $50 million for the company and produce a fully diluted market value of $201 million at the share price’s midpoint of $8.

Investors should keep an eye out for the ticker symbol “VDNT” on the Nasdaq Exchange, which is a natural fit for the energy tech company. As for when it will land, the Verdant Earth IPO date still isn't clear. Verdant Earth’s next step is to set a final share price, after which the stock will likely publicize within a few days.