LONDON - An unprecedented rally in “green” hydrogen stocks looks set to extend as investors flock to companies which promise to produce the gas without using fossil fuels, expecting the technology to scale up over the next 10 years to justify rocketing valuations.
Share prices of companies in the industry have soared more than 500% in the past year, driven by the rising adoption of zero-emission vehicles, a deadline set by many countries to go carbon-free by 2050 and lately U.S. President-elect Joe Biden’s support for clean energy. While a lot of focus has been on hydrogen’s role in the automotive sector, its usage is growing far beyond that.
The frenzy in hydrogen-related stocks has led to some concerns about a bubble, with companies trading at extreme prices based on expectations that their revenue will surge in future, despite worries about possible headwinds for the sector.Toyota launched a new hydrogen fuel cell car in December, but it has largely failed to win customers over to the technology amid concerns about a lack of fuelling stations, resale values and the risk of hydrogen explosions.
UK-based ITM Power, which manufactures the electrolysers needed to make green hydrogen, is trading at a massive seven times its 2030 sales, while rival Nel is relatively cheap at three times 2030 sales, according to HSBC’s calculations.
la_inzu
I like this tech and yes both electricity and hydrogen are produced by fossil fuels. If the infrastructure widens I could see hydrogen having a great impact with quicker refuel times and no power loss in colder climates.
Wall St. will pump hydrogen stocks and dump them onto investors who have 0 scientific understanding, but bitcoin is dangerous?
في كر
Trump did such a thing this time that he stunned the hearers
In other words you not only have ethanol competing for water, now you have hydrogen plants using the water we need to feed our crops, humans and animals.