As major players in the energy sector continue to develop new ventures, hydrogen energy is emerging as an alternative fuel source of interest. It figures prominently in the carbon-neutral strategies of companies like ExxonMobil and Chevron. And major automakers including Toyota, Honda and Hyundai are working on hydrogen-powered vehicles.
But while hydrogen is the most plentiful element in the universe, we're still a long way off from it being a significant energy source. Hydrogen consumption currently only equates to about 2% of total global energy demand, according to S&P Global data.
Most of the recent focus has been on green hydrogen, the cleanest form, and blue hydrogen, derived from natural gas. However, the development of hydrogen technology appears to be lagging behind competing alternative energy sources.
Hydrogen Stocks Rebound
From an equity market perspective, hydrogen stocks rolled into a downturn as investors realized that recent projections for mass adoption may have been overly optimistic. But at least some of those stocks appear to have bottomed and are starting to turn around, with the Global X Hydrogen ETF climbing 28% in May.
So what does the future hold for hydrogen energy and what will it take for this clean fuel to become a viable replacement for natural gas and electrification?
2024: A Pivotal Year For Hydrogen Energy?
IBD recently partnered with sister company OPIS to host a virtual roundtable with industry experts to hear why they believe now is a pivotal time for hydrogen energy and what investors should know about the evolving landscape.
"We're trying to provide reliable, affordable energy to society as well as reduce emissions. And that's a really big, complex challenge," said Michael D. Foley, who heads the UK low carbon solutions team at ExxonMobil. "In ExxonMobil's view, hydrogen provides a really important solution to that."
Foley states that hydrogen will play a "key role" in achieving net-zero emissions targets and could account for 10% of global energy needs by 2050. But developing hydrogen technology with large-scale capacity will be critical to carbon emissions reduction strategies.
Other industry experts who shared insights included Marta Oliveira, associate at Ikigai Capital; Adam Baddeley, head of electrolytic and industrial hydrogen at Progressive Energy; Angela Needle, director of strategy at Cadent; and Cuckoo James, associate director of the hydrogen and solar team at OPIS.
For details on their thoughts on hydrogen energy, watch the virtual roundtable discussion.
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