Market Analysis: Hydrogen

Already a Large Market

Hydrogen is not a new commodity; in fact, it has a large existing market. Current production* is already in excess of 90 million tonnes a year, mainly for refining and industrial applications and produced almost completely from fossil fuels. Its use as a source of energy is about the future, and the future is happening faster than you might think.

* According to the International Energy Agency.

Mind the Cost Gap

A key barrier for low carbon emitting hydrogen is producing it at low cost.

Fossil fuel production has been low cost, but is high carbon emitting. Depending on gas prices, the hydrogen production cost is US$0.50-1.7/kg, compared to US$3-8/kg utilising renewable energy.

However, The game is quickly changing. In the long term, hydrogen costs utilising renewable energy are expected to fall to US$1/kg within a range of US$1-3/kg.

Are you ready to invest in Small Cap Stocks now?

Get access to our best stocks to buy now. 14 days free. No credit card required just enter your email and you're away.

Why the Game is Changing in Favour of Renewables

Simply put, the declining cost of fuel cells, which provide the electrolysis that converts hydrogen into electric energy. The cost of automotive fuel cells has dropped by 70% since 2008 due to technological progress and the growing sales of fuel cell electric vehicles.

Potential growth areas for hydrogen propulsion substitution from fossil fuels includes trucking, rail, shipping and aviation.

Read more about Investing in Small Caps. Why we picked these ASX Small Cap gems and their outstanding performance.

Hydrogen Cost of renewable energy

Australia is Well Placed

Australia has favourable renewable wind and solar energy to produce hydrogen from water using electrolysis. BUT, it needs to be very large scale to produce hydrogen as close to US$1/kg as possible.

5 highest performing Oil Stocks on the ASX

Click Here!

Want to Access Hydrogen on the ASX?

Subscribe for only $59 Month and discover our top Hydrogen stocks to Buy, Sell, and Hold.

Join Now

Related Article: ASX Lithium Stocks

This is the ultimate guide to get you started investing in Australia's ASX Lithium stocks. We make it super easy for you to make informed decisions and to start investing successfully in ASX Lithium stocks. - Richard Hemming

Read more


Richard Hemming

Richard Hemming

Follow Richard on linkedin

Richard is a leading market commentator and expert on ASX Small Caps provides investment opportunities in Small Caps that you won’t get anywhere else.

Under the Radar Report is licensed to give general financial advice only (ASFL: 409518). The author does not own shares in any of the stocks mentioned.

Under the Radar Report is licensed to give general financial advice only (ASFL: 409518). The author does not own shares in any of the stocks mentioned.

Related Articles

Andy Gracey Australian Ethical - Fund Manager Series


Getting Rich with Rich: Top Australian Gas Stocks & Market Updates


3 ASX Shares for June 2024 & Watch Your Portfolio Grow