The Hydrogen Revolution
Today I will take you on a journey outlining my understanding of fuel cell technology, to help you better understand how it works and how we can get involved.
Fuel Cells: Similar to how batteries work, fuel cells produce electricity and heat. A fuel cell is comprised of two electrodes: a negative electrode or anode, and a positive electrode or cathode. These surround an electrolyte. The fuel - such as hydrogen is fed to the anode, and air is fed to the cathode. The way hydrogen fuel cells work is a catalyst is then created at the node that separates hydrogen molecules into protons and electrons, which take different paths to the cathode. Finally, the electrons go through an external circuit, thus creating a flow of electricity!
Hydrogen Fuel Cell Investment Opportunities ($FCEL, $BLDP, and $PLUG): These three companies have been dominating the markets with their remarkable returns over the past year, even with the recent market correction. They each tackle different demand criteria from the market. Fuel Cell Energy ($FCEL) focuses more on the stationary creation of hydrogen, such as manufacturing their equipment to manage dangerous chemicals and gases from factories, and manufacturers, and producing clean energy from it. On the other hand, Plug Power ($PLUG), is focused primarily on portable power systems for material handling equipment, such as forklifts in warehouses. Some of their biggest customers include Amazon ($AMZN) and Walmart ($WMT), who are transitioning to more sustainable infrastructure, thus lowering carbon emissions. Since writing this, on May 22nd, 2021, the Fuel Cell Energy ($FCEL) stock is up 350% from a year ago when it was only $2. The share price is now $8.91, as of the last close on Friday. This is an incredible return for investment into the hydrogen industry, and it's only a fraction of where it was just this past February, creating new 52-week highs at $29.44.
Future of H-2 Demand: What makes a great investor is someone who can imagine what this world will be like in the future, and invest accordingly, to curate, and support innovation to fulfil these needs. What I see is an enormous demand for clean, and easily deployable energy in the near future, and based on the statistics, we should expect to see a 10-fold increase in Hydrogen demand by 2050. What does this mean for investments aforementioned and others in this industry? Boom. And in a good way. The market weeds out companies that are necessary, and crucial to the advancement of humankind naturally. These are some investments that I see doing very well over the next few years, and by getting in now, you are ahead of the crowd, and realization of the market, which is perfect. Right now hydrogen fuel cells are slowly trickling into our world's infrastructure, and as shown in the graph below, we should expect to see a giant increase in their overall presence and relevance sooner than you might think.