Greetings from Germany, where we had a significant development this month. As you know, I’ve been talking about the benefits and potential of hydrogen as a fuel to reduce emissions and power the global economy. In the United States, interest is growing around companies like Plug Power (PLUG) and FuelCell Energy (FCEL). Following the announcement of an infrastructure bill this week, I’m sure there will be more significant speculation on electric vehicles and carbon-neutral energy systems. But we are moving full steam ahead in Germany. In case you missed it, Germany has signed a deal with Australia to boost the importation of hydrogen. “Germany Australia Hydrogen Accord” arrived two weeks ago.
Germany and Australia’s agreement forges a trade relationship that centers around renewable energies. The reach and magnitude of this deal is impressing. And I’m expecting that a lot more of these deals will come across Europe. We could even see one pull U.S. and Canadian soon.
Breaking Down the Germany Australia Hydrogen Accord
The deal is about “enabling the import of sustainably produced hydrogen in large quantities, which is an important factor in achieving our stringent climate targets,” according to a recent press release. Australian Prime Minister Scott Morrison was an important part of this deal. He said that global cooperation is critical to ensuring the development of new energy technologies.
“Our goal is to produce the world’s cheapest clean hydrogen, which will transform transport, mining, and resource extraction in Australia and overseas,” Morrison said. This deal puts a lot of focus on the production and trade of green hydrogen. Hydrogen is considered “green” if produced from renewable energy such as wind or solar through electrolysis.
Major energy companies such as German utility RWE and Uniper are already working on possible trading routes between Germany and Australia. Over in the U.S., hydrogen is not a significant source of energy now. But I want you to think about one German company that can help make this a leading fuel of the future.
German giant Siemens Energy is currently working on several large-scale projects. The company has a very robust project called the Intermountain Power Project in Utah to blend natural gas with hydrogen. The electricity can deliver power to customers, including California’s Los Angeles Department of Water and Power.
These are very ambitious projects, but they’re extremely exciting. I will be talking more about the opportunity here, as this could be an extremely profitable trend for investors who get in on these projects early. I’ll be back with more insight very soon. For now, keep an eye on the ongoing development of green hydrogen between nations around the globe. This is an exciting time for energy investors.