Fuel of the future - hydrogen

In recent years, electric cars have stormed onto Danish roads. But we may also have to get used to seeing more cars running on hydrogen in the future. But what is the advantage of hydrogen as an energy source compared to electricity and fossil fuels? This article gives you an insight into how you as an investor can invest in hydrogen. The article contains affiliate links.

What is hydrogen?

Hydrogen is the first element in the periodic table and the solution to many of the problems that currently limit the deployment of green energy. Hydrogen can be made from either fossil fuels or renewable energy sources - the latter are called green hydrogen.

Through electrolysis, electricity can be converted into hydrogen, which is much easier to store and transport.

In recent years, electric cars have taken to the roads in Denmark. But we may also have to get used to seeing more cars running on hydrogen in the future. But what is the advantage of hydrogen as an energy source compared to electricity and fossil fuels?

Hydrogen can be seen as the best of both worlds. Cars that run on hydrogen emit no pollutants, only water. At the same time, you are not limited by long charging times like with electric cars, as hydrogen cars can be refuelled just like normal cars.

How can hydrogen be used?

Hydrogen is already being used in several areas - but it is far from being as widespread as it is hoped to become in the future. Today, for example, hydrogen cars are available from Hyundai and Toyota, but sales figures are relatively limited. However, many car manufacturers are now exploring the possibility of producing hydrogen cars.

However, it is hoped that hydrogen will become much more widely used in the next few years. There are several reasons for this. First, the technology behind hydrogen production will become both cheaper and more efficient. In addition, the need to smooth out the fluctuations in electricity generation will increase as the transition to green energy takes place, which hydrogen can help with.

Future potential

Investment bank Barclays expects up to 10% of cars and 35% of trucks by 2050 will run on hydrogen. So hydrogen is expected to become relatively widespread. In addition to passenger cars, hydrogen could also be used in contexts such as ferries or aircraft.

Several countries and companies are currently investing large amounts of money in developing and deploying hydrogen as a fuel, including Denmark. For example, researchers are working on the EEEHy project, which aims to reduce energy loss and yield 99 percent of energy, as well as increase hydrogen production by as much as 400 percent compared to existing commercial technology.

Germany has also invested heavily in hydrogen. In total, the state has invested over 5.2 billion euros in research projects involving hydrogen. In doing so, it aims to become the "Hydrogen Republic of Germany" and has already set aside a further €52 billion for future investment.

Several others have also invested large sums of money in the industry, so it is safe to assume that this will help to speed things up so that we soon see more hydrogen cars on the roads.

Follow the development of hydrogen through a tracker certificate

A certificate is a security that tracks an underlying asset - such as a an equity index. Many certificates are leveraged, but not all of them l. The benefits of buying a certificate are similar to those of funds or ETFs; you can easily achieve a larger diversification, and at the same time you don't have to pick one or more individual stocks.

If you are interested in gaining exposure to hydrogen through a certificate, Vontobel offers the following certificate: