We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The green energy revolution is gathering pace and investors are making the most of this emerging trend. Amid the clamor for cleaner fuel sources, hydrogen has emerged as a key player. Hydrogen, when used as a fuel source, only emits water and heat, making it a clean energy alternative. When combusted or used in fuel cells, it produces water as the only by-product.
This is in stark contrast to fossil fuels, which emit harmful greenhouse gases. As the hydrogen sector continues to develop, investors are becoming increasingly interested in hydrogen stocks and ETFs. The pack has seen momentum in the past month.
Global X Hydrogen ETF (HYDR - Free Report) , Direxion Hydrogen ETF (HJEN - Free Report) and Defiance Next Gen H2 ETF (HDRO - Free Report) have added 27.4%, 18.3% and 22.9% past month (as of May 30, 2024). Let’s find out why these ETFs are rallying.
AI Boom Boosting Hydrogen Stocks?
The AI industry's expansion has led to an increased need for clean and sustainable energy sources, which includes hydrogen as a potential fuel. An IEA report said that by 2026, the AI industry is expected to consume at least 10 times the electricity demand it had in 2023, as quoted on CNBC.
An IEA report, published in January, highlighted that on average a typical Google search uses 0.3 watt-hours of electricity versus 2.9 watt-hours for a ChatGPT request. This demand is reflected in the stock market, where companies involved in green hydrogen production are gaining attention.
The hydrogen market is expected to grow significantly, with projections suggesting it could reach a valuation of $410.6 billion by 2030, marking a CAGR of 7.80%, per a markets and markets research report.
Cheaper Than Electric Vehicles?
Hydrogen fuel cell vehicles are powered by converting hydrogen gas into electricity through a fuel cell. Hydrogen is supposedly cheaper than electric vehicles. Its cost effectiveness lies in the production and distribution of hydrogen itself.
While the initial cost of manufacturing hydrogen fuel cells is higher than battery packs used in electric vehicles, the infrastructure required for generating and dispensing hydrogen can be less expensive and more scalable than the infrastructure needed for widespread electric charging stations.
Other Usages
Hydrogen has a high energy density by weight, making it effective for applications where weight is a crucial factor, such as in aerospace and certain transportation sectors. Also, its ability to store and release energy also makes it a likely solution for grid storage, helping to balance the intermittent nature of renewable sources like wind and solar.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Hydrogen ETFs Soared in May: Here's Why
The green energy revolution is gathering pace and investors are making the most of this emerging trend. Amid the clamor for cleaner fuel sources, hydrogen has emerged as a key player. Hydrogen, when used as a fuel source, only emits water and heat, making it a clean energy alternative. When combusted or used in fuel cells, it produces water as the only by-product.
This is in stark contrast to fossil fuels, which emit harmful greenhouse gases. As the hydrogen sector continues to develop, investors are becoming increasingly interested in hydrogen stocks and ETFs. The pack has seen momentum in the past month.
Global X Hydrogen ETF (HYDR - Free Report) , Direxion Hydrogen ETF (HJEN - Free Report) and Defiance Next Gen H2 ETF (HDRO - Free Report) have added 27.4%, 18.3% and 22.9% past month (as of May 30, 2024). Let’s find out why these ETFs are rallying.
AI Boom Boosting Hydrogen Stocks?
The AI industry's expansion has led to an increased need for clean and sustainable energy sources, which includes hydrogen as a potential fuel. An IEA report said that by 2026, the AI industry is expected to consume at least 10 times the electricity demand it had in 2023, as quoted on CNBC.
An IEA report, published in January, highlighted that on average a typical Google search uses 0.3 watt-hours of electricity versus 2.9 watt-hours for a ChatGPT request. This demand is reflected in the stock market, where companies involved in green hydrogen production are gaining attention.
The hydrogen market is expected to grow significantly, with projections suggesting it could reach a valuation of $410.6 billion by 2030, marking a CAGR of 7.80%, per a markets and markets research report.
Cheaper Than Electric Vehicles?
Hydrogen fuel cell vehicles are powered by converting hydrogen gas into electricity through a fuel cell. Hydrogen is supposedly cheaper than electric vehicles. Its cost effectiveness lies in the production and distribution of hydrogen itself.
While the initial cost of manufacturing hydrogen fuel cells is higher than battery packs used in electric vehicles, the infrastructure required for generating and dispensing hydrogen can be less expensive and more scalable than the infrastructure needed for widespread electric charging stations.
Other Usages
Hydrogen has a high energy density by weight, making it effective for applications where weight is a crucial factor, such as in aerospace and certain transportation sectors. Also, its ability to store and release energy also makes it a likely solution for grid storage, helping to balance the intermittent nature of renewable sources like wind and solar.