Hydrogen stocks set to soar All the stars have aligned for hydrogen to “tip” into hypergrowth mode this year
By
Luke Lango, InvestorPlace Senior Investment Analyst I’m all about
energy independence these days. The tragedy unfolding in Ukraine right now — and the collateral economic damage felt around the world because of it — has me thinking that enough is enough.
The world needs to shift away from fossil fuels. No more fighting over oil or suffering from sanctions on natural gas. No more relying on foreign exports to power our economy. And no more soaring gas, grocery and utility prices because a madman named Putin decided to fight the world.
Truth be told, you and I shouldn’t be feeling the costs of this war. But to some degree, we are —
and that’s not right.
The world needs to do better. And it will, thanks to
hydrogen.
Yep, hydrogen – not solar, wind or fossil fuels. The most important cornerstone of the energy independence revolution that will solve today’s crisis – and prevent future ones from ever happening again – will be the universe’s most abundant element. And yet it’s one you’ve probably not thought of as an economic powerhouse.
But that could be the single most expensive mistake of your lifetime. Hydrogen, folks, is going to turn into an
$11 TRILLION economy all by itself in the 2020s. And hydrogen stocks are going to be some of the market’s biggest winners of the decade.
That’s
not an exaggeration.
Remember what solar stocks did over the past five years? Take
Enphase
Energy (NASDAQ:
ENPH), for example. That stock turned every $10,000 invested five years ago into $1.4 million today.
Hydrogen stocks are going to do that and then some over the next few years as hydrogen turns into the most important energy source in the world.
So… what’re you waiting for? Opportunity’s knocking.
Answer the door.
Let’s Talk Science To understand the huge opportunity in the Hydrogen Economy, we need to first rewind to our college Chemistry 101 classes.
Recall the periodic table. Hydrogen is the
lightest element in the universe. As such, you can fit a lot more hydrogen atoms into a finite space than, say, lithium atoms. And as a result, a hydrogen power source will be infinitely more energy-dense than a power source made with
anything else.
That has enormous implications:
- In transportation markets, more energy density means hydrogen fuel cells have longer driving ranges and faster refuel times than batteries.
- In stationary markets, it means they have more consistent and robust power output.
- And in all markets, it means hydrogen fuel cells are much lighter and more transportable.
Make no mistake.
Hydrogen has some enormous value-adds in the clean energy world. That’s why – once hydrogen becomes cost-effective and viable – those producing and supplying it will be among the most important energy companies in the world. Hydrogen stocks will be some of the
best-performing tech stocks of the 2020s.
But
why now? After all, the periodic table hasn’t changed over the past 50 years. So, what has changed that will allow hydrogen to take over in the 2020s?
Hydrogen Stocks Are at a “Tipping Point”
We believe that for the first time ever, all the stars have aligned for hydrogen to “tip” into hypergrowth mode this year.
For starters, you have favorable
politics. In the 1970s, no one cared about decarbonization. Now seemingly every country and company in the world has a net-zero emissions target by 2030, 2040 or 2050. And the Russo-Ukrainian war only underscores the need for countries to disband their reliance on Russian oil and establish independence via clean energy sources.
The
costs of hydrogen have plummeted, too. Economies of scale and advanced technologies have led to the cost of hydrogen fuel cells dropping 60% over the past decade. Deloitte expects hydrogen fuel cell costs to drop below electric battery costs by 2024 and combustion engine costs by 2028.
The
tech has dramatically improved. Technological breakthroughs and falling renewable energy costs have led to a new era of scalable “Green Hydrogen” production. Now hydrogen is cost-effectively produced from renewable energy sources like solar and wind — and not from natural gas, which is how most has been produced historically.
In sum, that’s incredible change.
Basically, while the periodic table hasn’t shifted over the past 50 years, everything else has. For the first time ever, all the growth drivers for hydrogen have shown up to the party at the same time.
And it’s time for this party to
start rocking.