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Shift Into Hydrogen Could Lift These 3 Stocks Higher

Shift Into Hydrogen Could Lift These 3 Stocks Higher


In a report on the alternative fuel market, analyst Rupert Merer, of National Bank of Canada, looks at the possibilities and potentialities of the hydrogen as both an energy resource and a commodity. At the heart of the matter, he writes, “Stakeholders across energy markets have reached the consensus that climate change is a problem and decarbonization of our energy supply mix will require a multifaceted approach which includes H2. It is estimated that H2 could supply 15% to 25% of global energy needs…”

Merer adds, of hydrogen’s potential benefits, “H2 has the ability to reduce emissions in sectors where decarbonization is otherwise challenging, such as freight logistics, collective transport and industrial heating.”

So what is hydrogen, and why is it important? Hydrogen is the most plentiful element in the observable universe, and is a common building block in complex organic molecules. It’s found in both wood and petroleum derivatives – there is a reason those are commonly called hydrocarbons – and along with oxygen, it is part of the ordinary water molecule. Without hydrogen, life as we know it would not be possible.

With this in mind, using TipRanks database, we locked in on three stocks that some of Wall Street’s top analysts have tapped for gains in the growing hydrogen environment.

Ballard Power Systems (BLDP)

The first stock on the list is Ballard Power Systems, a hydrogen fuel cell manufacturer based in British Columbia, Canada. The company focuses on proton exchange membrane technology, one of several competing technologies in the hydrogen fuel cell market. Ballard’s PEM fuel cells are distributed worldwide, and to date, the company has produced and shipped over 400MW worth of fuel cell products. Ballard’s fuel cells are used in transportation technology, to enable fully electric busses, commercial trucks, trains, and forklift vehicles.

Like many manufacturers dependent on the transportation sector, this has been a hard year for Ballard. The disruptions caused by the coronavirus have hit the company form two directions: first, the usual foul-ups in the supply and distribution chains – but also, Ballard markets its products to commercial users, who have themselves been locked down due to corona. In short, Ballard saw revenues fall in the first part of 2020, and they have yet to recover. Q3 revenues came in at $25.6 million, in line with the first and second quarters of the year. Read More..

Source : finance.yahoo
Anand Gupta Editor - EQ Int'l Media Network