Rising emissions across the globe are causing climate change. Countries are trying to find out a solution to meet the rising demand for energy and at the same time reduce emissions. Hydrogen as a fuel source can be a game changer, and assist in lowering emissions and help companies meet the ultimate zero-emission target.
Per International Energy Agency, the decline in emissions due to the novel coronavirus outbreak was impressive. Sadly, this emission decline is temporary. The gradual rollout of vaccines is resulting in the reopening of economies, which is again set to increase emission levels.
Hydrogen as a fuel source can be a permanent low-cost solution for global emissions. However, demand for hydrogen is not picking up due to unavailability of the same in the purest form like other elements available globally to produce energy. Production of hydrogen requires a complex process and huge quantity of electricity, as well as involves large investment for infrastructure.
Many companies are utilizing cheap natural gas to produce hydrogen but the process is not emission free and adds to pollution. However, ongoing research and development has significantly lowered the cost of producing electricity from renewable sources like solar and wind. At present, clean electricity is being channelized to produce hydrogen, which can be termed as green hydrogen.
In comparison to the existing conventional sources of fuel, green hydrogen has immense potential as a clean fuel source and can be utilized to produce clean electricity when conventional solar and wind power is not available due to natural causes. Goldman Sachs in its research report rightly sees it as a $12-trillion global market opportunity by 2050.
Hydrogen as a Fuel Source
The ongoing research and development, as well as support from the U.S. Department of Energy to produce hydrogen economically and in an eco-friendly way — with fuel cell plants occupying much lesser space to produce energy compared with conventional and renewable power projects — is increasing the importance of hydrogen as a fuel.
Green hydrogen can be used in fuel cells to generate energy through a chemical reaction, which produces water and heat as byproducts. The energy produced from this process does not create any emission and can be used for domestic operations, transportation, as well as portable power. It can also be utilized for many more applications.
4 Companies to Benefit From This Revolution
FuelCell Energy Inc. FCEL
FuelCell Energy designs, manufactures, sells, installs, operates and services stationary fuel cell power plants for distributed power generation. Its SureSource product line is based on carbonate fuel cell technology in various configurations. The company is utilizing the fuel cell technology to generate clean energy for wide customer base across the globe.
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bloom Energy Corporation BE
Bloom Energy, through its proprietary solid oxide fuel cell technology, converts hydrogen fuel into electricity through an electrochemical process without combustion. The Bloom Energy Server is an advanced distributed energy generation platform that operates 24×7 with the highest efficiency of any power solution available globally. The company currently has a Zacks Rank #3.
Ballard Power Systems is involved in the design, development, manufacturing, sale and service of proton exchange membrane fuel cell products. The company offers heavy duty modules, fuel cell stacks, backup power systems and portable power/unmanned aerial vehicles, along with material handling products. The company is working to reduce cost by producing higher-efficiency modules through improved manufacturing and designing process.
Plug Power Inc. PLUG
Plug Power provides hydrogen fuel cell turnkey solutions to electric mobility and stationary power markets. The company has an expertise in proton exchange membrane fuel cell and fuel processing technologies, hybrid technologies, as well as related hydrogen storage and dispensing infrastructure. Its cutting edge hydrogen fuel cell solutions are designed to provide zero-emission power to customers. The company continues innovating end-to-end hydrogen fuel solutions by harnessing its unique capabilities and is the largest buyer of liquid hydrogen in North America.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2021?
Source : finance
