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August 4, 2022
Hydrogen Stocks
Reached a Critical Point and Are Primed to Soar
Over the next several years, improving
economics will drive the robust, widespread adoption of green hydrogen
August 3, 2022
By
Luke Lango,
InvestorPlace Senior Investment Analyst
- Walmart, the largest retailer,
recently announced a landmark deal with Plug Power, the largest
hydrogen producer, to supply enough green hydrogen to essentially
power every Walmart forklift in the world.
- When it comes to green hydrogen, the
two biggest cost inputs are falling rapidly. But when it comes to
gray hydrogen, cost inputs are rising.
- It’s possible that green hydrogen
costs are at the critical inflection point of becoming
economically viable, and this could very well be the start to the
world’s biggest retailer powering its entire operations with green
hydrogen.
![](images/images_08_04_2022/pic16.jpg)
Source: Shutterstock
[Editor’s note: “Hydrogen Stocks
Reached a Critical Point and Are Primed to Soar” was previously
published in April 2022. It has since been updated to include the most
relevant information available.]
They say timing is everything. And right
now, the timing is perfect to look for
hydrogen stocks to buy.
By “right now,” I quite literally mean
right now.
We said that 2022 would be the year
hydrogen comes into its own as a viable clean energy technology. And
that’s mostly due to the plunging cost of its production alongside the
soaring costs of oil and natural gas. (It all comes down to
economics). As a result, the $11 TRILLION Hydrogen Economy will start
to emerge.
Indeed, Walmart (WMT),
the largest retailer, recently announced a landmark deal with
Plug Power (PLUG),
the largest hydrogen producer. The latter will supply enough green
hydrogen to essentially power every Walmart forklift in the world.
Sure, its just forklifts. But you have to
start somewhere. Mark my words. This is the beginning of Walmart’s
entire operations — stores, trucks, forklifts, and more — shifting to
hydrogen power.
See why we’re so bullish? The deal
lit a fire underneath already-red-hot hydrogen stocks. Indeed,
Plug Power stock popped, adding to its already absurd 900%-plus gain
over the past five years.
![](images/images_08_04_2022/pic18.jpg)
But in truth, we think this party for
Plug Power — and all hydrogen stocks — is just getting started.
It’s time to buy. The
next wave of the energy revolution has arrived. And just
like the last wave — EVs and solar power — this will mint
millionaires, too.
The only question is: Will you be one
of them?
Walmart Kick-Started Hydrogen
Stocks’ Takeoff
We didn’t know it was going to happen.
But on the same day we said the Hydrogen Revolution was ready to kick
into hypergrowth mode, the world’s largest-ever green hydrogen
production deal was struck.
Specifically, leading H2 company Plug
Power announced its agreement to supply 20 tons of green hydrogen a
day to Walmart.
Context is required to understand the
magnitude of this deal because it’s much more important that it may
seem at first glance.
Hydrogen is the lightest element in the
universe. Therefore, hydrogen fuel cells are the most energy-dense
power source in the world. To that end, hydrogen fuel cells make the
most sense in long-range, heavy-use situations. There, you need an
energy source that packs a powerful punch and doesn’t need much
downtime. And one such application is forklifts.
So, over the past several years, Plug
Power has been hyper-focused on making hydrogen fuel cells for use in
forklifts. Walmart has long been interested in this idea. In fact,
since 2012, Walmart has bought thousands of hydrogen forklifts from
Plug Power.
Recently, Plug Power has expanded its
operational focus from being a hydrogen forklift company to being an
all-in-one hydrogen powerhouse. That has included the creation of
green hydrogen production plants.
Quick recap: Green hydrogen is H2 that’s
produced from renewable energies. Funnily enough, despite hydrogen
being the most abundant element in the universe, it doesn’t exist in
its pure form naturally. Therefore, to produce it, we need to obtain
it from other energy sources. Those sources can be fossil fuels (which
produce “gray” or “blue hydrogen”) or renewables like solar (which
produce “green hydrogen”).
![](images/images_08_04_2022/pic19.jpg)
Hydrogen of Today
Most of the hydrogen energy in use today
is gray hydrogen. And that’s simply because the cost of producing
green hydrogen has been prohibitively expensive. Ecologically, that’s
problematic because gray hydrogen isn’t really a departure from fossil
fuels. It’s just wrapped in a different package.
Most energy analysts have long predicted
that the critical driver of the H2 Revolution hinges upon green
hydrogen becoming cost-effective.
We appear to be at that crucial
inflection point today.
Just look at the Walmart deal. The
world’s largest retailer wouldn’t be striking a deal for 20 tons of
green hydrogen per day — enough to power about 25,000 forklifts — if
it didn’t think Plug Power could deliver at cost-competitive levels.
And if that’s the case, then this is just
a sample of what’s to come. Walmart will test green hydrogen as a
forklift fuel source. Then, it will start using green hydrogen in its
delivery trucks and vans. End game, the company will use it to power
stores.
It’s possible that green hydrogen costs
are at the critical inflection point of becoming economically viable.
And this could very well be the start to the world’s biggest retailer
powering its entire operations with green hydrogen.
This may mark the beginning of a
new energy revolution.
The Start of an Energy
Revolution
Science seems to strongly back the claim
that green hydrogen costs are at a tipping point. And it bolsters the
belief over the next several years, improving economics will
drive robust, widespread adoption of green hydrogen.
In other words, Walmart may be the first
in a series of mega-corporations that start buying green hydrogen for
fuel.
Oil and gas prices are the on rise. But
green hydrogen costs are falling. That’s because solar and wind
production costs are falling due to economies of scale. It’s also
because electrolyzer costs are falling. And electrolysis is a key
component of green H2 production.
So, when it comes to green hydrogen, the
two biggest cost inputs are falling rapidly. But when it comes to gray
hydrogen, cost inputs are rising.
The result? A flip-flopping of the
cheapest hydrogen production method.
In April 2022, due to the spike in gas
prices, Europe, the Middle East, Africa and China saw green hydrogen
costs drop below that of gray hydrogen. According to Bloomberg New
Energy Finance, green hydrogen production is about 15% cheaper
throughout Europe and 40% cheaper in China.
This marks a critical
moment in time.
Green hydrogen wasn’t supposed to be
cheaper than gray until 2030. But it’s already made it there. Original
projections called for H2 costs to break even with fossil fuels in
2028. Though it seems that moment may come much sooner.
![](images/images_08_04_2022/pic20.jpg)
In other words, green hydrogen may soon
be, if it’s not already, the cheapest energy source in the
world.
No wonder Walmart signed the biggest green hydrogen
production deal ever.
The Final Word on Hydrogen
Stocks
Some things in life are coincidences.
This is not. This the world’s largest retailer’s strategic deal to
secure green hydrogen production before a “gold rush” occurs very
soon.
And this gold rush will send hydrogen
stocks —
and all alternative energy stocks — significantly higher.
They say timing is everything. Well,
today, the timing couldn’t be more perfect for hydrogen
stocks — or any alternative energy stocks, really.
With fossil fuel prices soaring and
renewable energy expenses dropping, cost-parity dates for clean
energies have been accelerated by years. So, too, has the entire New
Energy Revolution.
There are many ways to play it — hydrogen
stocks. solar or wind stocks, energy storage stocks;
even battery stocks.
All represent great long-term investments
that will generate huge returns over the next three, five, and 10-plus
years. Find out more about those excellent investment opportunities.
I’ll give the final word to Plug Power’s
own CEO, Andy Marsh:
“I’ve been here the worst of times
and the best of times. This is one of the best of times.”
On the date
of publication, Luke Lango did not have (either directly or
indirectly) any positions in the securities mentioned in this article.
Green Play Ammonia™, Yielder® NFuel Energy.
Spokane, Washington. 99212
www.exactrix.com
509 995 1879 cell, Pacific.
exactrix@exactrix.com
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