Hydrogen fuel and newer technologies will get a boost from these three industries
The world is switching to other fuels, pushing the dirty ones like diesel and gasoline out and making the clean ones like hydrogen and ammonia the next big thing both for the economy and in the investment world.
The following written content from earlier post by The Financial Star
They will power everything… from cars to vans, trucks, forklifts… even ships and jets.
Neither hydrogen nor ammonia emits greenhouse gases.
So they can be used everywhere without any carbon footprint.
In the article below, I’ll tell you about three industries that are switching to clean fuels like hydrogen and ammonia right now.
It’s not some science-fiction scenario… these changes are happening now. And investors who don’t position themselves and their portfolios to benefit from these trends will miss out…
…while the ones that will keep them on their radar could become tomorrow’s millionaires.
We wouldn’t be talking about it otherwise. Here at The Financial Star, we follow trends that are happening now. So that you can stay ahead of the rest of the investment community.
Refining
You may not know this… but hydrogen can make diesel cleaner.
It’s used in oil refining to reduce the sulfur content of diesel.
Now, why is this important?
Because lower-sulfur diesel is the low-hanging fruit of the global transition to a cleaner and greener future.
Make no mistake. Diesel needs to go, and it will. But in the meantime, companies whose fleets run on diesel can use hydrogen to make it less harmful to the environment.
It won’t save them against new environmental regulations… but it will provide demand for hydrogen right now.
In the European Union, which is a $15 trillion economy, refineries represent the highest source of demand for hydrogen.
And guess what… as the environmental regulations become stricter, using just any hydrogen will not cut it. The world is moving toward a completely clean hydrogen supply chain.
This means that the future is in “green hydrogen,” or hydrogen produced without any greenhouse emissions.
It’s possible to achieve this by using renewable energy and water.
We will not be surprised to see the European Union declare that refineries must use green hydrogen in their activities.
And when that happens, the demand for green hydrogen will skyrocket.
Steelmaking
The world has embarked on multi-trillion infrastructure projects. They will help boost the global economy and deal with the consequences of Covid-19.
There is one problem, though…
Infrastructure projects that rely on steel are environmentally dirty. Let me explain…
Every ton of steel emits almost two tons of carbon dioxide.
This is why steelmakers across the world are scrambling for a solution that would allow them to de-carbonize steel production.
As with other industries, hydrogen is the solution.
Hydrogen can make steel production cleaner. In fact, since the only byproduct of the steel produced using hydrogen is water… it’s called “green steel.”
This is another avenue where hydrogen is indispensable… but we’re coming back to the idea that hydrogen itself needs to be green. Because unless the whole steel production process is clean, you can’t call it “green steel.”
Just as a reminder, the world consumes about 1.8 billion tonnes of steel per year. This tells you that the demand for green hydrogen used to produce this steel will run in the billions of dollars, too.
Not all of that hydrogen will be produced on-site. And since ammonia is the most economical way to transport hydrogen molecules, the demand for it will soar as well.
We’re convinced that green ammonia will be as important in the future both as a source of energy itself and a transportation vehicle for hydrogen.
Transportation
This is a trillion-dollar industry that badly needs to decarbonize.
From cars to cargo ships, the global fleet of transportation vehicles is moving toward clean fuel.
It’s not only environmentally responsible… it also makes business sense. Put simply, the regulations already in place, plus the ones that will be introduced in the future, will drive the companies running on dirty fuels like diesel or gas out of business.
To survive, companies will need to go green.
And hydrogen, along with ammonia, is the only fuel that can realistically power this global industry.
Global leaders in the transportation space, from Rolls Royce to MAN and Samsung, are working on technologies that will make transportation clean today.
This is a megatrend worth watching… green hydrogen and green ammonia will save the world. Read more from The Financial Star
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