4 Hydrogen Stocks to Gain From $12-Trillion Market Opportunity
Rising emissions around the world are causing climate change. The countries are trying to find a solution to meet the increasing energy demand while reducing emissions. Hydrogen as a fuel source can play a vital role in reducing emissions and helping companies achieve the ultimate zero-emission goal.
The drop in emissions due to the novel coronavirus outbreak has been impressive, according to the International Energy Agency. Unfortunately, this drop in emissions is only temporary. The gradual introduction of vaccines will reopen economies, which in turn will increase emissions.
Hydrogen as a fuel source can be a permanent and inexpensive solution to global emissions. However, the demand for hydrogen is not increasing because it is not available in its purest form like other elements that are available worldwide for energy production. The production of hydrogen requires a complex process and a large amount of electricity, as well as large investments in infrastructure.
Many companies use cheap natural gas to produce hydrogen, but the process is not emission-free and contributes to environmental pollution. However, ongoing research and development has significantly reduced the cost of generating electricity from renewable sources such as sun and wind. Currently, clean electricity is being channeled to produce hydrogen, which can be referred to as green hydrogen.
Compared to the existing conventional fuel sources, green hydrogen has immense potential as a clean fuel source and can be used to generate clean electricity when conventional solar and wind power is not available for natural reasons. Goldman Sachs rightly sees a global market opportunity of $ 12 trillion by 2050 in its research report.
Hydrogen as a fuel source
Ongoing research and development as well as support from the US Department of Energy for the economical and environmentally friendly production of hydrogen - with fuel cell systems taking up much less space for energy generation compared to conventional and renewable energy projects - increases the importance of hydrogen as a fuel.
Green hydrogen can be used in fuel cells to generate energy through a chemical reaction that creates water and heat as by-products. The energy generated in this process does not generate any emissions and can be used for home operations, transportation and portable energy. It can also be used for many other applications.
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4 companies benefit from this revolution
FuelCell Energy Inc. FCEL
FuelCell Energy designs, produces, sells, installs, operates and maintains stationary fuel cell power plants for decentralized power generation. The SureSource product line is based on carbonate fuel cell technology in various configurations. The company uses fuel cell technology to generate clean energy for a broad customer base around the world.
The company currently has a Zacks Rank 3 (Hold). The full list of today's Zacks # 1 Rank (Strong Buy) stocks can be found here.
Bloom Energy Corporation BE
Bloom Energy uses its proprietary solid oxide fuel cell technology to convert hydrogen fuel to electricity through an electrochemical, non-combustible process. The Bloom Energy Server is an advanced distributed power generation platform that operates around the clock with the highest efficiency of any power solution available worldwide. The company currently has a Zacks Rank 3.
Price development (one year)
Ballard Power Systems Inc. BLDP
Ballard Power Systems is involved in the development, manufacture, sale and service of proton exchange membrane fuel cell products. The company offers high-performance modules, fuel cell stacks, emergency power systems and portable motor / unmanned aerial vehicles and products for material handling. The company is working to reduce costs by producing modules with greater efficiency through improved manufacturing and design processes.
Plug Power Inc. PLUG
Plug Power offers turnkey solutions for hydrogen fuel cells for electromobility and stationary electricity markets. The company has expertise in the areas of fuel cell and fuel processing technologies for proton exchange membranes, hybrid technologies and the associated infrastructure for the storage and delivery of hydrogen. The state-of-the-art hydrogen fuel cell solutions are designed to provide customers with emission-free electricity. The company continues its innovative capabilities by leveraging its unique capabilities and is the largest consumer of liquid hydrogen in North America.
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FuelCell Energy, Inc. (FCEL): Free Stock Analysis Report
Plug Power, Inc. (PLUG): Free Stock Analysis Report
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Bloom Energy Corporation (BE): Free Stock Research Report
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