Hydrogen Investments

There are several ways to participate in the Hydrogen boom. The stock market offers direct investments in Hydrogen stocks, Hydrogen indices, Hydrogen investment funds, and various certificates.

Selected Hydrogen Stocks

Hydrogen Index Certificates

You can also buy factor certificates on the following Hydrogen Indexes

Global Hydrogen Index (by UniCredit Bank AG)

Solactive Hydrogen Top Selection Index (by Vontobel)

Open End Index Certificate: DE000A2GG8L9 | A2GG8L

Open End Index Certificate: DE000HVB4H28 | WKN: HVB4H2

The oil of the future

As a very CO2-neutral or low CO2 energy carrier, depending on its production, hydrogen could make a Western contribution to achieving the goals of the Paris Climate Conference in 2015. The great advantage of this versatile energy source is that its production can be completely climate-neutral, provided that renewable energy sources are used.

oxygen-hydrógenAnother significant advantage of hydrogen is that the colorless and odorless gas can also be used to store energy. For example, the surplus electricity from wind and photovoltaic plants can be used in the future for the electrolysis of water to hydrogen, so that the “oil of the future” can then be stored in tanks and converted back into electricity when needed. Accordingly, the production of hydrogen can also be seen as an optimal supplement for all green electricity plants. Up to now, green electricity producers have had to disconnect their sustainable plants from the grid in phases with strong wind or strong sunshine and very low power consumption.

Hydrogen shares are very trendy

While investors, who before the corona crash had bet on companies in the fossil energy sector, are now still sitting on book losses of sometimes more than 50 percent, the shares of the leading hydrogen companies have long since returned to double-digit growth. This divergent development clearly indicates that in the meantime more and more investors have realized that hydrogen could possibly be one of the leading energy carriers of the future.

The euphoria about the long-term potential of hydrogen technology thus caused the share prices of the three most sought-after companies in the sector to climb quickly out of their corona low again. The share prices of Ballard Power, PowerCell and NEL are currently already around 35, 65 and 58 percent above their March lows (as of April 23).

The sector offers a rich selection of companies

In connection with hydrogen, the Norwegian hydrogen filling station operator NEL, the Canadian world market leader for fuel cells, Ballard Power, and the Swedish company PowerCell, which cooperates with Volvo and Bosch, among others, are often mentioned. However, the universe of companies working in the field of hydrogen and fuel cell technology is much more comprehensive.

The US group Bloom Energy, for example, has specialized in the development of solid oxide fuel cells or high-temperature fuel cells and is considered a technical pioneer in this field. As the name suggests, the operating temperature of such fuel cells averages 650 to 1,000 degrees Celsius. The British company Ceres Power is also active in this segment.

Another exciting company focusing on hydrogen-based energy supply is the US company Cummins and FuellCell Energy, among others. The Plug Power group, which installs fuel cells in forklift trucks, is another hydrogen specialist from the United States.

However, the innovative companies in the hydrogen sector are by far not all from the USA, but of course also from Germany. SFC Energy from Munich, for example, with its development for off-grid and stationary power generation, as well as 2G Energy with the installation of combined heat and power (CHP) plants, have established an excellent reputation in the industry.

In addition, Hexagon, ITM Power and McPhy Energy, three other specialists in the industry, are located on the European continent. While the French group McPhy and the Norwegian company Hexagon are increasingly focusing on hydrogen storage, the British electrical engineering group ITM Power wants to build the largest hydrogen production plant in Europe together with the British-Dutch energy giant Shell.

Blue chip companies also rely on hydrogen

Investors, who find the classic hydrogen champions too “niche” and too small, can also rely on European blue chips, who also want to advance hydrogen technology with great commitment. For example, Air Liquide, Linde, Daimler, OMV, Total & Shell have joined forces in a consortium called H2-Mobility to build a comprehensive hydrogen infrastructure to supply fuel cell cars.

The British-Dutch oil multinational Shell goes even further and recently announced that it will build the largest hydrogen production facility in Europe, covering the entire value chain, i.e. from hydrogen production to storage and transport.

“We believe in the importance of hydrogen and are convinced that the investment will pay off. […] Together we have the ambition to make the Netherlands the world leader in hydrogen”, said Marjan van Loon, Shell’s head of the Netherlands in an interview with Handelsblatt.

Not only individual shares offer opportunities

In order to participate in the long-term opportunities offered by the hydrogen industry, investors do not necessarily have to invest in individual shares, but can of course also rely on a diversified basket of shares. Investors can choose between index certificates from providers such as Vontobel or Morgan Stanley, which track the performance of companies in the industry, or ETFs that invest in companies active in the alternative energy sector. But whether with individual shares, certificates or ETFs, there are currently good opportunities for long-term investors to gain a foothold in the promising, climate-friendly and sustainable hydrogen and fuel cell industry.