Buying The Future Of The Hydrogen Economy


The future of the hydrogen industry stays strong, with continued optimism and business dedication. The Hydrogen Council predicts that by the year 2050, demand for hydrogen may grow 7 times. In the more near-term, the International Energy Company approximates an increase in hydrogen production by over 135% in between 2020 and 2030 in a net-zero situation. However, correctly utilizing the powers of hydrogen is no basic task, and needs correct production, generation, storage, and supply. Thus, there is a variety of business included across different stages of the community.

While a lot of the pure-play hydrogen business may not be home names, lots of big, widely known business are also participating the action. Toyota’s brand-new CEO, Koji Sato, has actually reaffirmed that hydrogen fuel cell automobiles stays a leading priority for the automaker, and means to grow their hydrogen facilities. Sato stated he wishes to “guarantee that hydrogen stays a practical alternative” in the tidy energy world. Shell, a popular oil and gas gamer, is paving the way for energy companies’ participation in the hydrogen area.

In fact, Shell is one of the 13 charter member of the Hydrogen Council. In mid-2022, Shell made the last financial investment decision to build a 200MV electrolyser, called the Holland Hydrogen I, that will transform wind power into hydrogen, which is one of the cleanest approaches of production. An electrolyser is a piece of equipment that divides water into hydrogen and oxygen in order to isolate each aspect for their specific usage cases. Appropriately, the Direxion Hydrogen ETF (NYSE: HJEN) consists of Shell in its portfolio (9.30% since March 31, 2023).

The Fund: Direxion Hydrogen ETF (NYSE: HJEN)

The Direxion Hydrogen ETF (NYSE: HJEN) tracks the Indxx Hydrogen Economy Index *, which is thoroughly built to offer direct exposure to the hydrogen space. Although the energy sector as a whole has been largely out of favor, year-to-date, the Index has performed well relative to other tidy energy indices.

The Index consists of companies in the hydrogen market involved in hydrogen generation and storage, transportation and supply of hydrogen, fuel cells, and hydrogen fueling stations. The fund is consisted of business that fit into among four sub-themes. Much of the focus of hydrogen application lies with the usage of fuel cells for transportation, which is shown in the overweight “fuel cell and battery” sub-theme.

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