Hydrogen stocks have been incredibly explosive. Among those are FuelCell Energy (NASDAQ:FCEL), which ran from $7 to $20 before pulling back recently. However, most can see even more upside in FCEL stock.
All as countries around the world scramble to find a solution to meet new demands for energy and reduce harmful emissions. In fact, many are turning to hydrogen as a game changer to help countries meet their zero-emission targets.
After all, hydrogen is generating energy through a chemical reaction, which produces water and heat as byproducts. It doesn’t create emissions and can be used for a good number of applications in transportation and portable power, for example.
Hydrogen Has a Bright Future with Joe Biden
President-elect Joe Biden is bullish for hydrogen. Not only is he expected to sign an executive order for the U.S. to rejoin the Paris climate agreement, but he’s also expected to invest heavily in clean energy and related infrastructure, including hydrogen.
According to Recharge News:
The Solar Energy Industries (SEIA) CEO Abigail Ross Hopper said a Biden presidency would “advance clean energy incorporat[ing] environmental justice”, while American Council on Renewable Energy (Acore) CEO Greg Wetstone called the election “historic” and one that would create “the clean energy future that Americans want, and scientists say we need.”
Goldman Sachs Calls Hydrogen a ‘Once in a Lifetime Opportunity’
Goldman Sachs called hydrogen a “once in a lifetime opportunity,” adding, the addressable market could be worth up to $11.7 trillion in the next 30 years.
Analysts at Bank of America says green hydrogen could be worth more than $11 trillion by 2050. In addition, the firm also compared green hydrogen to smartphones pre-2007 and the internet prior to the dot-com boom, as also highlighted by CNBC.
Raymond James’ analyst Michael Glen said 2021 could be a “watershed moment” for hydrogen. In fact, he expects to see far more hydrogen-related announcements going forward from companies and countries all around the world.
Industry Heavyweights are Fueling the Boom
Plug Power (NASDAQ:PLUG) recently gave the sector a big shot in the arm after signing a memorandum of understanding with France’s Renault (OTC:RNLSY). The two will launch a 50-50 venture by the end of 2021. Reportedly, they’ll target over 30% share of the light commercial vehicle market in Europe.
Ballard Power (NASDAQ:BLDP) even received an order from Arcola Energy for FCmove-HD fuel cell modules to power a passenger train. It’s expected to contribute to Scotland’s goal for net zero emissions by 2025.
Countries Around the World are Fueling Upside
China is pushing for net neutrality by 2060. In fact, 90% of vehicles on its roads will have to run on non-fossil fuels. Plus, half of its aircraft will have to fly on green hydrogen. All in an effort to cut carbon emissions by 75% to 85%.
The European Union called hydrogen “essential” to reach carbon neutrality by 2050. They’ll even invest up to $430 million by 2030.
Chile, Japan, Germany, Saudi Arabia and Australia are also investing in hydrogen. They’re all aware hydrogen could provide clean power for many industries, including transportation and manufacturing.
The Bottom Line on FCEL Stock
With a growing number of people concerned about climate change, many are looking into greener alternatives, like hydrogen. Biden is bullish for green energy. He’s expected to rejoin the Paris climate agreement in an effort to reduce greenhouse emissions. He’s also expected to invest heavily in clean energy and related infrastructure, including hydrogen.
Big investment firms are bullish on it, calling it a “once in a lifetime opportunity.” Countries around the world are pushing for a greener future with it. Other related hydrogen companies, like Plug Power are helping to fuel upside.
In short, investors can’t go wrong jumping on the hydrogen bandwagon with hydrogen plays like FCEL stock.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned in this article. A contributor to InvestorPlace.com, Ian Cooper has been analyzing stocks and options for web-based advisories since 1999.
