2 US Government-Approved Hydrogen 'Pure Players' That Will Boost Your Portfolio
In a world navigating the shift towards cleaner energies, recent disruptions in fossil fuel markets triggered by the conflict in Ukraine have prompted nations to reassess their reliance on natural gas and oil.
Amid the exploration of various alternative energy sources, hydrogen emerges as a particularly promising yet underdeveloped option. Unlike traditional fuels, hydrogen's combustion leaves no greenhouse gases, producing only water vapor as a byproduct.
However, the challenge lies in its limited availability in easily extractable forms, coupled with the fact that current production methods often involve greenhouse gas emissions, preventing it from achieving economic competitiveness on the scale needed to rival fossil fuels.
However, this could change in the years to come. Last month, the US Department of Energy (DoE) designated a number of companies to receive a $7 billion package, a long-awaited announcement of an initiative to accelerate the commercial-scale deployment of clean hydrogen and bring down its cost.
Indeed, the production of clean hydrogen costs around $5 per kilogram, and the U.S. Department of Energy aims to bring the cost of clean hydrogen down to $1 per kilogram over the next decade.
Funded by the Infrastructure Investment and Jobs Act (IIJA), the initiative plans to create seven H2Hubs across the U.S., laying the groundwork for a nationwide network of clean hydrogen producers, consumers and connecting infrastructure. Each hub will include elements of clean hydrogen production, storage, delivery and end-use.
Among the companies that will benefit from the financing are companies with a wide range of profiles, such as major oil companies like Exxon Mobil Corp (NYSE:XOM) or Chevron Corp (NYSE:CVX), but
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