Making Sense of The Hydrogen Hype

For Investment Professionals Only Such is the urgency of Net Zero, the world is casting around for technologies which can quickly disrupt established fossil fuel value chains. Green hydrogen, produced from renewables, is receiving much of the attention, given its potential to feature in the re-invention of everything from transport to home heating. Policy, too, is coalescing around hydrogen with direct subsidies being established in the US last year and the EU this year. Our research leads us to be in equal parts excited and cautious about hydrogen’s potential. On the one hand, converting the existing $100bn hydrogen industry to clean technology presents an enormous investment opportunity. Clean hydrogen could also replace highly polluting temporary power sources such as diesel generator sets which are used everywhere from building sites to data centres. In other areas though, the excitement seems misplaced – efficiency losses mean clean hydrogen is unlikely to make its way meaningfully into the home heating system, and we don’t expect widespread take-up of expensive hydrogen cars. In this video, we aim to separate the hydrogen hype from reality, by discussing: - Why hydrogen is now at the forefront of the decarbonisation debate - Which applications we are most positive about hydrogen playing a role, based on our research - How we find companies which can generate sustainable returns in such a new industry - Examples of companies which are both impactful and capable of delivering a sustainably high return on capital - And much more!