Some stock market pundits, when comparing hydrogen cars to electric cars, jokingly bring up the battle of the video cassettes in the 1970s and 1980s. At that time, there were VHS cassettes and Betamax cassettes, and later Video 2000. As you may remember, VHS prevailed even though Betamax was considered by many experts to be the better variant in terms of color and sound quality. The different systems were not compatible with each other. The joke then ends with some people saying that hydrogen energy will meet the same fate as Betamax cassettes.
We see it somewhat differently here at Godesburg’s Haven Investment Letter, as you probably know. It’s not a question of whether it’s an e-car or a hydrogen car and which variant will prevail. It’s rather about where which variant makes the most sense. And above all, in which way cheap and clean energy can be created.
Countless researchers, engineers and scientists around the world are working on the commercial viability of hydrogen energy. And many governments are funding these projects and companies. Billions of dollars and euros are flowing into the hydrogen economy. In the U.S., Joe Biden’s infrastructure package will provide $8 billion in funding for the hydrogen energy economy. Another billion is to be allocated for the optimization of hydrogen electrolysis.
The German government has adopted the “National Hydrogen Strategy”. They are to create up to five gigawatts of total capacity here by 2030. That is currently about the capacity of off-shore wind turbines off German coasts. The European Commission has also described hydrogen as a necessity for the energy transition. By 2030, renewable energies are to generate 40 gigawatts to produce green hydrogen.
The History of Hydrogen Energy
Back in 1839, the British physicist Robert Grove invented the fuel cell by producing electricity from hydrogen and oxygen. Visionary author Jules Verne even wrote of the fuel cell technology in his book “The Mysterious Island” in 1875; “Water will one day be employed as fuel, that hydrogen and oxygen which constitute it, used singly or together, will furnish an inexhaustible source of heat and light, of an intensity of which coal is not capable.”
The excitement around hydrogen energy and its potential ran high… right up until the famously-recorded “airship” disaster of 1937. Though no exact cause for that fatal fire was ever determined, the “Hindenburg effect” impacted the study and use of the gas for decades. But as memory of that horror faded, science once again turned an eye to hydrogen due to its many positive attributes as a fuel source.
Hydrogen is abundant, renewable, non-toxic, efficient, emits dramatically less pollution than other sources, and can be produced anywhere on Earth. By the 1960s, scientists had produced hydrogen fuel cells powerful enough to supply the Apollo astronauts with all the electricity and water they needed to reach the moon.
Today, however, a series of political and technological catalysts has created a situation where the large-scale deployment of hydrogen across several industries is inevitable. Smart investors have a narrow window to scoop up undervalued hydrogen energy stocks before the Robinhood mob piles in.