4 Reasons why hydrogen investing so popular
May 18, 2024H2 has become an exceptionally popular topic and many wonder if it’s worth their money
As the world continues its effort to decarbonize, hydrogen investing has been making headlines. Investors have been working hard to determine whether H2 is where the money will be, and what moves they should make in order to take advantage of any opportunities.
There are many reasons that H2 is seen as having potential
Note: Before we get started, it’s important to underscore that this article is not intended as investment advice. This is a review of some of the main reasons hydrogen investing has such appeal, but it doesn’t mean that this is the right opportunity for you. For financial advice, we recommend consulting with experts in that industry.
To many, it appears that H2 will play a substantial role in the global transition to clean energy. Countries, organizations and companies have been developing, building and testing new technologies, and a number of projects are now being implemented to for use in areas such as transport, heavy machinery, and industry, among others.
What do investors see in hydrogen investing?
Of those who do feel that hydrogen investing is a solid opportunity for them, there are a number of reasons that they feel compelled to participate in this arena. Among others, they include the following:
It is promising as a clean energy
It is versatile, clean burning, and can be used for a broad spectrum of applications, including in some of the highest polluting industries on the planet.
The hurdles appear surmountable
It would be exceptionally shortsighted to imply that there aren’t any challenges in the way of the broadscale use of H2 as a clean energy source in the world. That said, the primary hurdles – such as price, distribution infrastructure, and storage – appear to be challenges that have the potential to be overcome in a reasonable amount of time.
It is versatile
As mentioned earlier, H2 can be used in a broad spectrum of applications. That said, its versatility is greater than that. There are many ways to source or produce it, it can be transported in many ways and in both gas and liquid form, and it can even be used for producing energy in more than one way, including using it in fuel cells or by combusting it, such as in internal combustion engines (ICEs).
Governments are into hydrogen investing
Governments around the world, including the United States, Canada, Japan, Australia, Saudi Arabia, India, China and many other huge players are making their own H2 investments, working to establish hydrogen economies in order to be prepared for a decarbonized world without excessive energy import dependencies.