Enter the hydrogen decade

Historical price data on the five companies covered in this issue
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Since the beginning of the year, the fuel cell stocks covered in this issue had seen a fast uptrend, which ended with the spread of Covid-19 around the world. Fears over the impact of the disease on the global economy meant some gains were quickly lost. Still, in light of increased news coverage, multiple project announcements and the growing popularity of green hydrogen, it has become clear that hydrogen and fuel cells are entering the mainstream and their breakthrough into the market is approaching rapidly.

One of the many potential uses for fuel cells is the electric transportation sector, where they primarily compete with batteries. What is often overlooked in this context is that the world’s biggest vehicle market, China, is not focusing on a single technology but a great variety of them to meet its future transportation needs. Moreover, the support and funding it provides for fuel cells in particular means the country is no longer putting that much effort into developing new battery technology.

As for the stock market, companies such as FuelCell Energy, believed to have gone under, are expecting to make a comeback and rise like a phoenix from the ashes. Other stocks are also benefitting from the overall good mood in the industry. The new-found enthusiasm is the result of hydrogen and fuel cell systems becoming an important weapon in the fight against climate change, for example, as part of the EU’s Green Deal. Most systems showcased to the public these days are prototypes, in testing, parts of living labs, or made in small numbers. However, it will only be a matter of time until they spawn new trends, and new megamarkets in particular.

read more in H2-international May 2020

Risk warning
Share trading can result in a total loss of your investment. Consider spreading the risk as a sensible precaution. The fuel cell companies mentioned in this article are small- and mid-cap businesses, which means their stocks may experience high volatility. The information in this article is based on publicly available sources, and the views and opinions expressed herein are those of the author only. They are not to be taken as a suggestion of what stocks to buy or sell and come without any explicit or implicit guarantee or warranty. The author focuses on mid-term and long-term prospects, not short-term gains, and may own shares in the company or the companies being analyzed.

Author: Sven Jösting, March 19th, 2020

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