Besides Plug Power & NEL: These platinum producers could benefit from the hydrogen boom

by Julia Groß, Euro am Sonntag

Dhe International Renewable Energy Agency (IRENA) estimates that hydrogen will cover around twelve percent of global energy consumption by 2050 and will be responsible for ten percent of the reduction in greenhouse gas emissions. At least two-thirds of the hydrogen will then be produced “green”, i.e. using electricity from renewable energies. A third is to come from “blue” production, ie from natural gas with the separation and storage of the resulting carbon dioxide.

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The agency expects this development to result in major changes in the global energy market, which will bring about new players, trade relationships and transport networks. According to the IRENA study published a few days ago, almost eleven trillion euros will be invested in the development of the entire value chain over the next 30 years.

According to the experts, the demand for hydrogen will only increase noticeably in the 2030s, while the 2020s are likely to be characterized by the race for technological leadership and the expansion of infrastructure. In contrast to the production of oil, there is likely to be much stronger competition with more players, according to the study. This is currently also reflected in the development of typical hydrogen shares such as NEL ASA or Plug Power: After a lot of hype at the beginning of 2021, prices have fallen sharply, as many investors have realized that significant profits are still a long way off and that competition is increasing at the same time.

Raw materials for electrolysers

It can therefore be worthwhile for investors to take a closer look at their raw material suppliers instead of the fuel cell and electrolyser suppliers. According to IRENA, the capacity of the plants that use electricity to split water into hydrogen and oxygen must be increased globally from the current 0.3 to 5,000 gigawatts. Various raw materials are required for the electrodes of the electrolysers: rare earths, nickel, cobalt, but above all platinum.

Investors who are willing to take risks can therefore also play the hydrogen theme via the shares of platinum producers. The largest include Anglo American Platinum (ISIN: ZA E00 001 318 1) and Impala Platinum (ISIN: ZA E00 008 364 8). Like pure hydrogen stocks, these commodity stocks are subject to fluctuations. In contrast to the hype companies, however, they can show real profits and distribute them quite generously to the shareholders: Anglo American Platinum’s dividend yield is currently around seven percent, that of Impala around ten percent.

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Image sources: Julian Mezger