Hydrogen is considered a crucial element in helping countries reduce emissions from energy consumption and achieving net-zero by 2050. It’s a cheaper and greener alternative to natural gas.
In the UK, the government is committed to investing up to £4bn in hydrogen, including production facilities, between now and 2030. The aim is to produce enough hydrogen to replace fossil fuel gas for heating and cooking in around 3 million homes. The government is hoping that hydrogen will power between 25% and 30% of UK homes by 2050. In the US, President Joe Biden’s infrastructure bill includes $8bn for capturing, transporting, and storing clean hydrogen.
There are various companies, big and small, working on hydrogen technologies, from hydrogen fuel cells and cars that run on them to companies that produce hydrogen. The allure of trading and investing in these stocks is in their growth potential over the long term. If hydrogen gains traction as an alternative fuel source, then these stocks could have similar potential to oil and gas companies in their infancy many decades ago.