More Investing in Hydrogen as Renewable Energy Source Opens Possibilities

Renewable energy sources have only seen higher interest following Russia’s invasion of Ukraine. As more countries turn to energy independence amid Western sanctions against Russia, one source of energy to consider is hydrogen.

A confluence of investment dollars, research, and scientific testing could make hydrogen a prime energy source moving forward. Like any fairly new technology, more testing will need to take place in order for hydrogen to become a viable option.

“Hydrogen is widely viewed as a sustainable energy source for transportation, but there are some technical obstacles that need to be overcome before it can be viewed as a practical alternative to existing technologies,” said Milad Abolhasani, an associate professor of chemical and biomolecular engineering at NC State. “One of the big obstacles to the adoption of a hydrogen economy is the cost of storage and transportation.”

North Carolina State University researchers are already developing new ways in order to extract hydrogen gas from liquid carriers. This could result in a more efficient, cost-effective process, making it an ideal option as a renewable energy source.

Capitalizing on Innovation

As hydrogen energy continues to undergo innovation, this opens up avenues for investment. One such exchange traded fund (ETF) to look at closely is the Global X Hydrogen ETF (HYDR).

The fund seeks to invest in companies that stand to benefit from the advancement of the global hydrogen industry. This includes companies involved in hydrogen production, the integration of hydrogen into energy systems, and the development and manufacturing of hydrogen fuel cells, electrolyzers, and other technologies related to the utilization of hydrogen as an energy source.

HYDR offers the following fund benefits per the product website:

  • High growth potential: Forecasts suggest that the global hydrogen fuel cell vehicle market could grow more than 75% from 2021 to 2026, approaching $31 billion in value and highlighting just one of many growth opportunities for the theme.
  • Advancing clean technologies: Hydrogen-powered fuel cells produce zero direct emissions, meaning that broader adoption could result in reduced greenhouse gas emissions and improved air quality.
  • Global tailwinds: The shift to green energy isn’t confined to a single sector or region. HYDR invests accordingly, with global exposure across multiple industries.

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