#Hydrogen stocks how to#

This is because green hydrogen could become a significant energy source as the green revolution continues apace. So when talking about your short vs long financial needs, investing in hydrogen fuel stocks is an example that might fit into the long-term category. The recent performance of ITM Power’s shares has followed a downward trend. ITM Power is a manufacturer of PEM electrolysers – one of the hydrogen technology products we mentioned earlier that are instrumental in producing green hydrogen. Buying green hydrogen stocks as part of your investment strategy is not only a way of growing the value of your investment, but it is also environmentally friendly.

If you invest in green hydrogen, you are, in effect, killing two birds with one stone. Green hydrogen is made by using renewably generated electricity, which separates water into hydrogen and oxygen through a tool known as an electrolyser. However, when the production method is electrically powered, and the CO2 is captured, the hydrogen produced is called blue hydrogen. From an environmental point of view, it is not a very desirable way of producing hydrogen gas. This process creates what is referred to as grey hydrogen. Strategies for investing in hydrogen stocksĬurrently, most of the hydrogen the world uses is produced by burning large-scale fossil fuels. As stocks and shares are one of the more readily understood investment options, let’s start with them.

#Hydrogen stocks how to#

In the next few paragraphs, we will explain how to invest in hydrogen via hydrogen fuel cell stocks, investing in hydrogen technology, and investing in hydrogen companies’ stocks and shares. So hydrogen can play a crucial role, making it potentially very interesting as an addition to your investment portfolio. The UK is committed to achieving “ net zero” emissions by 2050. You can use hydrogen to generate electricity, heat homes and business premises, power vehicles and industry. The EU and the UK are now developing long-term strategies for alternative energy sources, one of which is hydrogen. That source is no longer as freely available. The EU was getting 30% of its natural gas supplies from Russia. So, if you invest in hydrogen, you will be helping to combat climate change.Īnother reason that hydrogen gas is currently of so much interest has to do with the Ukraine crisis. When natural gas is burned (for example, to provide heat), it releases carbon dioxide, Whereas when hydrogen is burned, it only releases water. If you want to invest in hydrogen, it will be in the form of equities. But that is likely to change – indeed, plans are already underway. The extraction process is costly and, as yet, not widely available. This chemical symbol indicates that water is made up of 2 atoms of hydrogen for every 1 atom of oxygen.Īlthough it is there in most molecules of living things, as a gas, it is pretty scarce – under one part per million in terms of volume. Most of us are familiar with it in water, whose chemical symbol is H2O. Here on planet Earth, hydrogen only exists naturally in compounds such as gases, liquids, and solids. Stars, like our sun, are composed primarily of hydrogen with the help of Helium. Hydrogen is the most common and abundant element in the known universe.