Oct 13, 2019 – Wallstreet online reports: „How hydrogen is developing into a multi-billion market and which companies could benefit!“

(Convenience translation; Citation: https://www.wallstreet-online.de/nachricht/11810352-wasserstoff-multi-billionen-markt-entwickelt-unternehmen-profitieren-koennten/all)

Hydrogen was hardly considered for many decades, because the fossil energy sources oil and gas dominated, the environment functioned also under increasing CO₂ output and the production of fossil raw materials was relatively favorable. There was no serious reason to change anything. Today, however, the situation has changed fundamentally. The CO₂ emissions are beginning to change the climate significantly, putting agricultural yields at risk, increasing megastorms, making summers unbearable, and so on. And politics always seems to move only when the pressure from the population (as at present) increases.

Hydrogen is just one of many ways to protect the environment while providing energy, fuel and heat. Often the costs of the new technology are still too high today, but this should change significantly in the future. Find out how hydrogen is developing into a multi-billion market and which shares could benefit from it. 

Hydrogen will become more attractive in the future 

If even the boards of directors of energy companies slowly rethink and consider hydrogen to be lucrative, something could actually happen in the major industries. The CEO of the Italian gas supplier Snam Marco Alverà recently stated in an interview that hydrogen could cover about 25 % of Italy’s energy needs by 2050. 

He expects hydrogen to become an alternative to gas and fossil fuels. Unlike renewable energies, it can be stored and transported very easily. It could also be widely used in industry (e.g. for steel and cement production or aviation and shipping). 

Hydrogen will become cheaper not only because of increasing demand and production, but also because renewable energies are constantly being expanded, making the electricity produced cheaper. If one kilogram of hydrogen at the filling station costs 9.50 euros today, the price could probably be halved again in the future. 

It is precisely for this reason that many business leaders are currently rethinking. And the fuel cell could also become much cheaper by using synthetic materials. 

Increasing political pressure

A further reason for the rethinking within the industry is the increasing political pressure to further reduce CO₂ emissions. Germany wants to achieve a CO₂-neutral economy by 2050. 

Fossil fuels become thus more expensive and thus less attractive. As a result, even more investments will flow into environmentally friendly technologies and not into gas and oil infrastructures in the future. Snam, for example, recently invested a further 850 million euros in its hydrogen sector. 

Companies such as Snam and Gazprom have begun to introduce hydrogen into their networks. By the end of 2019, Snam’s share will already be around 10 %. All these developments reduce the production price for hydrogen so that it becomes very economical at a certain point. It is precisely then that much larger sums will flow into further development. 

Marco Alverà estimates that the value of the hydrogen market will rise from 100 billion US dollars today to 2.5 trillion US dollars by 2050. US dollar could climb. This is an increase by a factor of 25! 

But Shell and many other large corporations are also rethinking and promoting the expansion of hydrogen filling stations, for example. Shell, Air Liquide (WKN: 850133), Daimler, Linde, OMV and Total have joined forces to form an initiative that will expand the hydrogen filling station network in Germany to around 100 by the end of 2019. Hydrogen could therefore develop into the oil of the future.

Translated with www.DeepL.com/Translator