With the future bright on the prospect of Hydrogen being the fuel of choice for everyday use, thanks to its zero pollution property, stocks dealing with the fuel of tomorrow may be the next jackpot for investors.
According to Dale Gillham, chief analyst of Wealth Within, an Australian boutique investments company based out of Victoria, the current success of electric vehicle manufacturers can be emulated by the Hydrogen sector.
In a column in Money magazine, he said that just like the interest in electric cars has grown over the last decade to become mainstream, the Hydrogen sector too has the potential to bloom in a similar fashion.
He mentioned that the Australian Renewable Energy Agency (ARENA) has estimated that the demand for Hydrogen may scale to 3 million tonnes annually by 2040. He anticipated that given the prevailing situation in the market, there will be many mergers and acquisitions to consolidate the market with major players competing to establish themselves as the leaders.
According to the Australian government, Australia is spending $1.4 billion on building a hydrogen industry as part of its National Hydrogen Strategy. The plan envisages putting Australia as the key player in the sector by 2030. Before this, the national government had spent $22.1 million in funding for 16 hydrogen research projects.
These developments are in conjunction with Australia’s plan of decarbonizing its economy. The eastern part of the country succeeded in sourcing more than 33% of its electricity from green sources for the last quarter of 2021.
Unlike conventional fuels, the exhaust of hydrogen leaves water vapor, as opposed to carbon oxides which heat up the earth. But currently, the majority of the production of hydrogen used for the industrial processes itself causes much pollution leading to the search for green hydrogen which is hydrogen sources through eco-friendly means.