China charges ahead

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You can feel it – the wave of optimism sweeping through the hydrogen and fuel cell industry. All the more disappointing that the German government is taking its own sweet time setting up market regulations. It is a murky green light. Sure, there have been plenty of speeches. Yet, there is a decided lack of enthusiastic momentum. Even then, as the national hydrogen strategy was announced in early June.

At least there is a ray of hope for hydrogen research funding in the Covid-19 stimulus package. But truly clearing the way for the technology, it is not. The path remains the destination.

The same can be said for revisions to Germany’s renewable energy law EEG. Many professionals, industry agents and association representatives agree it should be scrapped, suggesting we use something else to generate revenue. Like a cap-and-trade program instead of yet another consumer surcharge. It seems China will beat us to the punch, again. It is allegedly investing in hydrogen and fuel cells, intent on cornering the market. A battery déjà vu. Lowering the EEG surcharge in Germany may sound good when you hear it for the first time. The Chinese, however, are much more pragmatic. Their plans encompass power-to-X.

read more in H2-international August 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, written June 13th, 2020

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