Hydrogen Economy (Themes Trading)
2021 was a break out year for this alternative energy and related hydrogen stocks. A global energy revolution is in motion, and clean green hydrogen is one of the key solutions to the climate crisis despite its relatively high production costs and the lack of a large-scale market.
The investment opportunities are vast, and set to spur the development of technologies for production, storage and transportation.
Unlike grey hydrogen, its green cousin uses renewable energies for its production, making it almost emission-free.
As a result, the fuel is widely considered integral to meeting netzero targets, particularly if the world’s largest emitters — the United States, China and Europe — are to decarbonise Hard-to-Abate sectors. Lastest News Hydrogen was a hot topic of conversation at this year’s Adipec conference in Abu Dhabi. It follows that the United Arab Emirates is positioning itself as a low-carbon market leader, aiming for a 25% export market share of blue and green hydrogen, and launching a Hydrogen Leadership Roadmap at COP26.
Recognising that comprehensive policy and investment must take place to lower the costs of clean hydrogen, US President Joe Biden signed into law a $1.85 trillion infrastructure package to kick-start the industry in the United States. The bipartisan package includes USD 9.6 billion in direct funding over the next five years to help commercialise the fuel. On the continent, Austrian integrated oil company OMV and Polish refiner Lotos are backing hydrogen as a transport fuel in Europe. OMV produces more than 50'000 metric tonnes of hydrogen annually and is part of the H2 MOBILITY initiative, which aims to build an extensive public hydrogenfilling-station network in Germany through 2023. The company has already started adding stations in Austria. Following a recent refinery upgrade, Lotos is capable of producing 16.5 tonnes per hour, and is investing in hydrogen purification, distribution units and refueling points in Poland, primarily aimed at publictransport vehicles. Additionally, Repsol recently joined a consortium aiming to develop greenhydrogen technology, while Neste is part of one that plans to make the fuel at the company’s renewable-products refinery in Rotterdam.
Hellenic Petroleum and Motor Oil Hellas are bidding for a project involving green-hydrogen production in Western Macedonia, with a capacity of 1.5 gigawatts using solar power. Hydrogen-powered vehicles are revving up to replace those fuelled by gasoline: Toyota unveiled its hydrogen-powered car Mirai, which will be used for transportation during the 2022 Beijing Winter Olympics. French multinational tyre manufacturing company Michelin exhibited a hydrogen-powered racing car, and Germanybased industrial giant Bosch exhibited a hydrogen fuel engine module. Down under, Australian company Titan Hydrogen Limited is developing a fuel enhancement system that can be installed into trucks, buses and power generators and is seeking pre-IPO funding for a 2022 run at the ASX.
The biggest spending right now in Hydrogen are governments.
In July 2020, the European Commission announced its hydrogen strategy with the “Hydrogen Strategy for a ClimateNeutral Europe” report. The EU objective is to be a net-zero carbon economy by 2050 with renewables accounting for a significant part of the energy decarbonisation. With hydrogen as an critical part of the solution. The goal of the plan is to increase hydrogen’s share of the market from less than 2% in 2020 up to 13–14% by 2050. The EU reports that the ramp up of green hydrogen will require a total investment of USD 470 billion over the next 30 years. A recent study by McKinsey & Company projected that hydrogen could meet 14 percent of the total American energy demand by 2050. The green hydrogen export market is expected to reach USD 300 billion yearly by the same year, creating more than 400'000 jobs globally in renewable energy and hydrogen production.
Hydrogen Economy
ISIN CH0513599479
Valor 051359947
Symbol HYDRTQ
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