We’re in the midst of a major economic transition, one that may eventually match the changes of the Industrial Revolution. The change, of course, is the advent of the green economy, and the switch from fossil fuel energy sources to renewable energy. While wind and solar power are soaking up the headlines, a more plausible long-term green power source is already near at hand: hydrogen.
Hydrogen is the most abundant of all the chemical elements, and also the simplest by molecular structure. It is found everywhere; with carbon and oxygen, it forms the basis of the organic compounds that make life possible, and in the heart of the sun, its nuclear fusion generates the light and energy on which we all depend. Without hydrogen, we couldn’t exist.
Hydrogen also offers high potential as fuel. It is highly reactive, and amenable to our technological control. As a fuel, it can be burned with oxygen to release both light and heat; as an element in fuel cells, it can generate clean electricity. Being so common, relatively simple technological processes – electrolysis powered from renewable sources and steam methane reforming associated with carbon capture and storage, to produce ‘green’ and ‘blue’ hydrogen respectively – can produce hydrogen at scale for industry and utilities.
A recent report from Deutsche Bank’s David Begleiter points out that, due to recent initiatives of the Biden Administration, it pays for companies to produce clean hydrogen. The Department of Energy has announced $7 billion in funding for regional clean hydrogen hubs in the US, and the US government is working to promote demand for clean hydrogen.
Begleiter, a 5-star analyst, has also been pointing out stocks that stand to gain as hydrogen use expands. We’ve used the TipRanks platform to look up the details on two of those picks, producers and distributors of industrial gasses, that are leaders in the sector – and that investors should watch them closely.
Linde plc (LIN)
Linde, the first company we’re looking at, was founded in Germany and traces its roots back to 1879. Today, the…
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