TransAlta (TSE: TA) announced Tuesday that it has made a C$2 million equity investment in the Series A funding round of Ekona Power Inc. TransAlta owns, operates, and develops a diverse fleet of power generation assets in Canada, the United States, and Australia.
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Early-Stage Hydrogen Investment
The investment will help support the commercialization of Ekona’s new methane pyrolysis technology platform, which produces cleaner, lower-cost turquoise hydrogen.
TransAlta will have a seat on Ekona’s Strategy Committee, whose members will receive project updates, guide development, and become priority commercialization partners if the technology is successful.
CEO Commentary
TransAlta president and CEO John Kousinioris said, “We are excited to make this early-stage hydrogen investment. Ekona has taken an innovative approach to its technology development, directly addressing the issues of high production costs and emissions from current conventional hydrogen production methods. If successful, Ekona’s technology will provide low-cost hydrogen to fuel clean, reliable, and dispatchable electricity generation.”
Wall Street’s Take
On January 28, RBC Capital analyst Maurice Choy kept a Buy rating on TA and set a price target of C$17. This implies 23.3% upside potential.
The rest of the Street is bullish on TransAlta, with a Strong Buy consensus rating based on seven Buys and one Hold.
The average TransAlta price target of C$16.57 implies 18.1% upside potential from current levels.
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