Doug Goodwille from Kayne Anderson speaks to Drew Meredith from The Inside Network on market thinkers.
While a surging gold price is on hold as the world adjusts to a Trump presidency, all the factors that saw its price rise more than 50 per during his first term in office – trade disputes, fiscal deficits and geopolitical tensions – are almost certainly guaranteed the second time around.
ETFs gain traction in delivering on ESG objectives
Flying is a great way to get around the world, but it comes at a great cost. In 2018, it’s estimated that global aviation – which includes both passenger and freight – emitted 1.04 billion tonnes of CO2.
This represented 2.5% of total CO2 emissions in 2018, and that’s huge. Aviation emissions have doubled since the mid-1980s. Aviation is responsible for 12% of CO2 emissions from all transport sources, compared to 74% from road transport.
As the world moves away from fossil fuels, hydrogen is receiving a lot of attention from investors around the world. “Green” hydrogen supposedly produces three times more energy than petrol on a weight-for-weight basis, while at the same time producing no carbon dioxide when burnt. In this article, we look at three of the main hydrogen companies found in ETF Securities’ Hydrogen ETF (ASX:HGEN).
The ETFS Hydrogen ETF gives investors exposure to the world’s leading hydrogen companies, with a focus on pure-plays. Hydrogen can be used to replace fossil fuels like coal in areas that have proved hard to “green up” in the past.
Here are the top three companies in the ETF
| Company | % |
| PLUG POWER INC | 11.4% |
| BLOOM ENERGY C-A | 10.6% |
| BALLARD POWER | 9.6% |
Plug Power Inc (NASDAQ:PLUG) – a leading provider of hydrogen solutions for the global green hydrogen economy. The company’s innovative technology powers electric motors with hydrogen fuel cells, and benefits from the ongoing “paradigm shift” in the power, energy, and transportation industries to address climate change and energy security, while providing efficiency gains and meeting sustainability goals.
Plug Power created the first commercially viable market for hydrogen fuel cell (HFC) technology. As a result, it has deployed over 50,000 fuel cell systems for e-mobility, more than anyone else in the world, and has become the largest buyer of liquid hydrogen, having built and operated a hydrogen highway across North America. Plug Power delivers a significant value proposition to end-customers, including meaningful environmental benefits, efficiency gains, fast fuelling, and lower operational costs.
Recently the company announced its third quarter results. 3Q revenue was up 35 per cent year over year to $144 million. The company also raised revenue guidance for 2022 given acquisitions and commercial traction, to $900m-$925m.
Bloom Energy C-A (NYSE:BE) – Headquartered in San Jose, California, the company manufactures and markets solid-oxide fuel-cells that produce electricity on-site. Its fuel cells are subsidised by government incentive programs for green energy. As of 2020, Bloom had installed about 600 megawatts worth of fuel cells. This fuel cell turns natural gas or hydrogen into electricity. Solid oxide is widely regarded as a more efficient type of fuel cell, and is used on-site by Silicon Valley giants to ensure they have electricity 24/7 to run their data centres. Some of Bloom’s biggest customers are Apple and PayPal.
Ballard Power (NASDAQ:BLDP) – Is a developer and manufacturer of proton exchange membrane (PEM) fuel-cell products for markets such as heavy-duty motive (that is, bus and tram applications), portable power, material handling as well as engineering services. The company received orders for a total of 40 fuel cell modules for planned use in buses in France, Germany and the UK next year. The FCmove-HD 70 kW fuel-cell modules are to be installed in new hydrogen buses for Rouen and Pau (France), Frankfurt (Germany) and Brighton (England). Ballard states that H2 buses with Ballard fuel cell technology are now in operation or in preparation in six German cities.
In total, almost 160 hydrogen buses with Ballard fuel cells are currently in operation in Europe, an increase of 80 per cent compared to October 2020, according to the manufacturer’s figures.
