Why Should You Invest in Hydrogen Vehicle Stocks? — Zivolve

5 min readJan 23, 2021

When it comes to automobiles looking for alternative fuel, Electric Vehicles (EV) are the ones that have been taking the spotlight. But Hydrogen Vehicles (HV) are another example, and they have been receiving support from companies such as Toyota and Hyundai. There is a lot of potential inside the HV industry, and here are some of the reasons why you should invest in it.

Oil and Gas Companies are Transitioning to Hydrogen

A New York Times article said that Hydrogen fuel is a threat to oil companies because it is capable of competing with Diesel and Jet Fuel. Hydrogen can be extracted from natural gas and emits Carbon Dioxide. This can provide an environmentally friendly option as it is combined with carbon capture and sequestration. The cleanest way to produce hydrogen is by using renewable energy to split water molecules, this results in creating Hydrogen and Oxygen.

This leads to companies such as BP and Shell to slowly transition towards Hydrogen. Researchers believe these companies have the best chance as they are also investing in renewables to make molecules for easy access to the public. Furthermore, they have experience with hydrogen for oil refining as it is the most abundant chemical substance in the universe.

Auto Manufacturers and Chemical Companies Collaborating

One of the major auto manufacturers, Hyundai is joining forces with Ineos to help to research Hydrogen technology. Some believe this new partnership is logical as Hyundai is one of the few companies that is capable of mass-producing hydrogen cars. With Ineos being a major chemical company, Hyundai would have an advantage over competing rivals such as Honda, Toyota, and BMW.

Hyundai has experience in handling the infrastructures in producing, storing, and fuelling hydrogen. Ineos’ experience in hydrogen production and handling will be a major asset for the South Korean manufacturer. Hyundai chairman, Euisun Chung said that the company will invest $6.5 billion in hydrogen R&D and facility expansion.

Hydrogen Fuel Stations Actually Available

Believe it or not, hydrogen fuel stations exist. In the United States, station locations include states such as California, New York, New Jersey, Connecticut, Massachusetts, Rhode Island, and Hawaii. California has a total of 39 and is expected to produce 25 more stations in the near future. The U.S. isn’t the only country involved, Canada and Suadi Arabia are also building their own stations.

Moreover, big-name auto companies such as Honda and Toyota are working with Shell to help produce these hydrogen fuel stations. In addition, companies such as Walmart and Amazon have more than 23,000 forklifts in 40 states that are powered by hydrogen.

Hydrogen Vehicles vs Electric Vehicles (EVs)

Although there are people who believe that hydrogen-fuelled cars are the future, there are those who criticize the effectiveness of hydrogen cars. A notable critic is Tesla’s founder and CEO, Elon Musk. He believes they are “mind-bogglingly stupid” and has called them “fool cells.”

Surprisingly, Yoshikazu Tanaka, the chief engineer of the Toyota Mirai, agrees with Musk’s criticism to a degree. In an interview with Reuters, Tanaka said, “Elon Musk is right — it’s better to charge the electric car directly by plugging in.” However, Tanaka also added that Hydrogen fuel cells are also a viable alternative source.

The debate between EVs and HVs will come down to many factors because not everyone in the auto industry has fully adopted either one. Other major manufacturers such as GM and Ford are still experimenting with these fuel cells and have yet to release EV or HV models. The cost of refueling one of the two vehicles will vary and is potentially a deciding factor. The cost of refueling an HV car from an empty tank costs about $80, $55 to $65 if the tank isn’t empty.

Furthermore, the price of buying an HV model is expensive. The Hyundai Nexo’s companies mass-produce HVs in the future.

Air Products & Chemicals (APD) — Established in 1940, Air Products & Chemicals is usually ting price is $59,345, the fuel cell versions of the Toyota Mirai and the Honda Clarity have a of products are usually given to hospitals and first responders but they are providing a hand in advancing HVs. In the past year, their stock is currently up by 32% and has a 1.8% dividend.

Cummins (CMI) — The company most associated with their reliable heavy-duty engines, Cummins has been developing electric and hydrogen for about 20 years. Recently, they have star discourage you from the fact that there is competition and that the demand for HVs is growing. It is still too early to call and it will take years to see what auto manufacturers will decide will be the main fuel for cars in the future.

Stocks To Invest In

If you want to start investing in HV, here are some notable stocks to keep an eye out for. While they aren’t any big-name auto manufacturers, these are stocks that will help these starting price also within the $59,000 price tag. Compared to the Hyundai Santa Fe which costs around $24,250.

While this will certainly bring doubt to your decision to invest in HV Stocks, don’t let it found selling carbon dioxide, oxygen gases, liquid oxygen, and hydrogen refinement. These types acquired a company called Hydrogenics who is leading the way for hydrogen fuel cells. In the past year, their stock is up by 22% and has a 2.4% dividend.

Fuel Cell Energy (FCEL) — Fuel Cell Energy is a company that generates and distributes hydrogen that is clean. This will be helpful for the development of hydrogen fuel stations as FCEL uses proprietary molten-carbonate fuel cell technology. Although they are currently down 11% year to date, this small company has a solid underlying business as they have been active since 1969.

Expert Tip:

According to Bank of America, hydrogen technology is at a “tipping point.” Production costs are falling, the technology is improving, and the worldwide trend is moving towards sustainable sources of energy. Look down the road and invest in a truly “future” technology now.

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D’Allegro, J. (2019, February 23). Elon Musk says the tech is ‘mind-bogglingly stupid,’ but hydrogen cars may yet threaten Tesla. Retrieved December 07, 2020, from https://www.cnbc.com/2019/02/21/musk-calls-hydrogen-fuel-cells-stupid-but-tech-may-threaten-tesla.html

Jennings, R. (2020, November 24). Hyundai’s Hydrogen Car Ambitions Get A Boost From British Billionaire’s Chemical Giant. Retrieved December 04, 2020, from https://www.forbes.com/sites/ralphjennings/2020/11/24/hyundais-hydrogen-car-ambitions-get-a-boost-from-british-billionaires-chemical-giant/?sh=5e6d21f02168

Navellier, L., & InvestorPlace Staff Dec 7. (2020, November 06). 6 Hydrogen Stocks To Buy For The Next Generation Of Travel. Retrieved December 07, 2020, from https://investorplace.com/2020/11/6-hydrogen-stocks-to-buy-for-the-next-generation-of-travel/

Penn, I., & Krauss, C. (2020, November 11). California Is Trying to Jump-Start the Hydrogen Economy. Retrieved December 04, 2020, from https://www.nytimes.com/2020/11/11/business/hydrogen-fuel-california.html

Originally published at https://blog.zivolve.com on January 23, 2021.




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