Green Hydrogen: Stake Your Claim in the Sector NOW
Green hydrogen is going to be a big part of the clean energy future. It’s forecast to be an $11 trillion market by 2050.
Many investors are ignoring this sector. They think it’s overhyped and overpriced. But I think that line of reasoning is just wrong.
There’s $119 trillion in assets looking for environmental, social and corporate governance (ESG) investments. That makes green hydrogen the sector that Wall Street is likely to double down on in 2021.
Green hydrogen is one of the new safe havens for big capital. And for the first time in history, America is going all-in on sustainability.
That means there are some excellent opportunities ahead in the green hydrogen space. And as the money pours in, savvy investors stand to make a fortune.
Half of the green hydrogen sector is focused on hydrogen fuel cells.
These generate electricity via an electrochemical reaction. There is no combustion and no nasty byproducts. And when the hydrogen is made with renewable energy, it’s called green hydrogen.
There’s no practical limit regarding fuel cell size. And you can stack the fuel cells to generate as much electricity as necessary.
Large, multimegawatt fuel cell stacks are already powering entire office complexes. Google, Walmart (NYSE: WMT), AT&T (NYSE: T), Home Depot (NYSE: HD), NASA and dozens of others are using this technology.
Fuel cells can run on hydrogen or natural gas. If natural gas is used, some greenhouse gases are produced. But the gases produced are less than what would result if natural gas were burned. That’s better for the environment.
Fuel cell stacks also provide 24/7 uninterruptible power. They replace highly polluting, legacy diesel generators. And even better, they give users virtually unlimited outage protection.
PayPal Holdings (Nasdaq: PYPL) has been running on a 10-megawatt fuel cell system for the last seven years.
PayPal’s facility is mission critical. Every year, it processes more than 5 billion transactions worth more than $350 billion.
The company estimates that an outage at this facility would cost eBay (Nasdaq: EBAY) alone $6,000 to $10,000 per second.
But the hydrogen-powered technology has never gone down or otherwise dropped its load.
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The other half of the green hydrogen sector is focused on reducing the cost of electrolyzers. These produce hydrogen from water using electrolysis.
Cummins Inc. (NYSE: CMI) has a New Power division focused on making electrolyzers. Others in that business include Norwegian company Nel ASA (OTC: NLLSF) and British firm ITM Power (OTC: ITMPF). Bloom Energy (NYSE: BE) is also working on an electrolyzer for 2021 delivery.
There’s no question that the green hydrogen sector is going to grow much faster than the market at large.
Forward-thinking investors will want to have this sector represented in their portfolios.
From my perspective, you can’t get in on this growing opportunity fast enough.
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