Hydrogen may be one of the most promising sources of clean fuel for a net-zero emissions world.
it may one day completely take over heavy industry.
And those high costs of production that had it stopping and starting … well, they’re changing–fast.
Hydrogen is now racing toward an $11 trillion marketplace.
Ammonia, the newest shining star of the hydrogen game, is expected to increase in market potential to over $80 billion.
The two go hand in hand.
Together, they could completely disrupt the energy industry.
They might even outshine lithium by … megawatts.
Lithium may not be able to provide enough power to support the transition of heavy industries to clean and sustainable energy sources.
So now, with the hype fading and reality setting in, we think the hydrogen economy is primed to tip the balances in favor of attractive opportunities for investors.
With entire countries and industries investing money into hydrogen technologies,
This could become a globally traded energy source. It’s already been deemed the a “fuel of the future”, but it could be much more than that: It’s the makings of the next commodity supercycle.
We think these three companies are well positioned to give investors exposure to our fuel future:
#1 Cummins Inc (NYSE:CMI)
There’s a good reason to like Cummins in this space: While PlugPower made some breathtaking returns earlier for hydrogen fuel cell investors, that boat has already left and Plug’s bubble burst along with it. But Cummins is more diverse. It’s hitting up hydrogen hard, but it’s also doing a lot of interesting things to keep diesel alive.
It’s the perfect stock for an energy transition because it’s on both sides of a divide that shouldn’t be … a divide. It’s a market transition that Cummins is navigating very well.
On one hand, the company–the largest heavy-duty engine manufacturer–is working on new technology to reduce emissions from ICE vehicles because any mandates for zero-emissions trucks are still decades away.
At the same time, Cummins is planning to build one of the world’s largest electrolyzer plants for the production of green hydrogen in Spain, in collaboration with Iberdrola. The facility will cost 50 million euros and will produce about 500 megawatts of polymer electrolyte membrane electrolyzers per year, with the potential to reach 1,000MW per year. It’s expected to be operational by 2023 already.
So, Cummins has its stake in both the present and the future, which makes its balance sheet and quarterly earnings reports more attractive to investors.
Already, Cummins has deployed more than 600 electrolyzers in 100 countries.
Year-to-date, CMI has gained about 15%.
That’s nothing compared to PlugPower’s wild gains earlier this year, most of which it’s lost since because too much of it was based on hype and too little on the balance sheet.
AmmPower is a relatively unknown company that is hoping to rise to fame for pioneering the missing link in the hydrogen game: ammonia.
It’s got up to 9x the energy capacity of lithium-ion batteries and is 1.8X more energy-dense than liquid hydrogen.
With green ammonia, AmmPower plans to develop technology that could disrupt the industrial world and help solve our hydrogen transportation problems at the same time.
It boasts a former NASA engineer at its helm, and its scientific team has an experienced track record. AmmPower aims to develop a novel, patentable technology to produce green ammonia. Moreover, AmmPowers green technology it’s planning to develop will be econimcally competitive, 100% sustainable and scaleable.
It’s planning to build modular, scalable, stackable green ammonia-producing units that could be flexible enough to fit a wide array of customers from individual organizations, farmers, marine vessels, large marine ports, and distribution hubs.
And … it’s actively searching for a manufacturing facility in Michigan to develop optimal catalytic reactions that produce green ammonia.
The technology AmmPower aims to develop could allow hydrogen cracking to be done closer to the end-user, reducing point-to-point logistics costs significantly. Green ammonia is gaining ground, both for combustion as a marine fuel and as a fuel for machinery at the port systems. Ammonia can be used in ships, machinery, even railroad and airplanes.
Over 120 global ports already accept ammonia…