[Editor’s note: “Hydrogen Stocks Will Produce the ‘Next Tesla’ in Its $11 Trillion Revolution” was previously published in April 2022. It has since been updated to include the most relevant information available.]
Here’s a little riddle for you: What’s super useful, set to grow 8,000% over the next decade and can solve the world’s current energy crisis?
The answer might surprise you. It’s hydrogen.
Yes, I’m aware of hydrogen’s back story. It’s been touted as a viable clean energy source since the 1970s. Yet, since then, its power still hasn’t been harnessed. The past 50 years in the Hydrogen Economy have been characterized by little more than a series of false starts.
But each new technology has its “moment” — when it proves itself and goes on to change the world.
For computers, that was in the 1980s, when Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) made CPUs that could fit on a desk. For the internet, that was in the 1990s, when Amazon (NASDAQ:AMZN) and eBay (NASDAQ:EBAY) showed the world it could build useful applications on the web. And for EVs, that was in the late 2010s, when Tesla (NASDAQ:TSLA) started producing more affordable Model 3s.
Now hydrogen is about to have its “moment.”
Currently, we’re amid a global energy crisis. And it can’t be fixed by fossil fuels, nor solar or wind power.
So, what will fix the crisis?
Over the next few years, hydrogen will solve it. As it does, we’ll witness the emergence of an $11 TRILLION Hydrogen Economy. And we’ll see the “next Tesla” in hydrogen stocks.
Let’s Talk Science
To understand the huge opportunity in the Hydrogen Economy, we need to revisit Chemistry 101.
Recall the periodic table. Hydrogen is the lightest element in the universe. You can fit a lot more of its atoms into a finite space. As a result, a hydrogen power source will be infinitely more energy-dense than a power source made with anything else.
That has enormous implications.
In transportation markets, more energy density means hydrogen fuel cells have longer driving rangers and faster refuel times than batteries.
In stationary markets, it means they have more consistent and robust power output.
And in all markets, it means hydrogen fuel cells are much lighter and more transportable.
Make no mistake. Hydrogen has some enormous value-adds in the clean energy world.
Once it becomes viable and cost-effective, the companies producing hydrogen will be among the most important in the energy world. And hydrogen stocks will be some of the best-performing tech stocks of the 2020s.
But why now? After all, the periodic table hasn’t changed over the past 50 years. So, why will hydrogen take over in the 2020s?
The Hydrogen Economy is at a “Tipping Point”
We believe that the stars have finally aligned, and the Hydrogen Economy will “tip” into hypergrowth mode this year.
For starters, there are favorable politics. In the 1970s, no one cared about decarbonization. Now nearly every country and company in the world has a net-zero emissions target by 2030, 2040 or 2050. And the Russia-Ukraine war only underscores the need to disband reliance on Russian oil. It is pushing countries across the globe to establish energy independence via clean energy sources.
The costs of hydrogen have plummeted, too. With advanced tech and economies of scale, hydrogen fuel cells costs have dropped 60% over the past 10 years. Deloitte expects these costs to drop below electric battery and combustion engine costs within a few years.
The tech has dramatically improved. Technological breakthroughs and falling renewable energy costs have led to a new era of scalable “Green Hydrogen” production. Now hydrogen can be produced from renewable energy sources, like solar and wind, cost-effectively. It’s no longer reliant on natural gas, which was historically used to produce most hydrogen.
In other words, while the periodic table hasn’t changed over the past 50 years, everything else has. And for first time ever, all the growth drivers for hydrogen have shown up at the same time.
It’s Nearly Hydrogen Stocks’ Time to Shine
In the words of Matthew Blieske, Shell’s (NYSE:SHEL) global hydrogen product manager:
“[In the past] there was a policy missing, or the technology wasn’t quite ready, or people were not so serious about decarbonization. We don’t see those barriers anymore.”
With those hurdles removed, the Hydrogen Economy will tip into its long overdue renaissance in the 2020s. And this will create what Morgan Stanley (NYSE:MS) sees as an $11 TRILLION hydrogen market in the coming decades.
Most investors are sleeping on hydrogen stocks today. And that means you have an incredible opportunity to buy them right now while they’re on sale.
But which hydrogen stocks am I talking about?
To answer that question, let’s turn to our flagship investment research advisory, Innovation Investor. In it, we exclusively invest in the most transformative megatrends, like cloud computing, AI, EVs, blockchain, gene-editing and, yes, hydrogen.
We’ve put together a portfolio of what we feel are the world’s most innovative stocks, with huge long-term upside potential.
And in that portfolio, we own one hydrogen company.
By far and away, it’s the strongest hydrogen company in the market today. Indeed, it projects to be the “Tesla of Hydrogen.” And its stock — well, let’s just say it could follow in Tesla’s explosive footsteps, too.
The Final Word on Hydrogen Stocks
The history of hydrogen as a viable clean energy source is riddled with empty promises and broken dreams.
But this time is different. Finally, hydrogen is ready to reshape the world’s energy landscape with ultra-affordable, energy-dense, reliable and transportable clean energy. It’s emerging when every country in the world looks to achieve energy independence. And consequently, it’s the only energy source that’s able to do so in a cost-effective way.
Investors who bet early on this revolution will win big. In our Innovation Investor portfolio, we’re betting big on hydrogen.
But that’s not all.
Alongside the “next Tesla,” we also own one tiny $3 stock that’s pioneering a “forever battery.” Alongside hydrogen, it will help redefine the world’s energy grid over the next decade.
As big of a winner as our top hydrogen stock will be, this tiny “forever battery” stock could be an even bigger one. Find out all the details.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.