April 19, 2021 • Paul Rodden • Season: 2021 • Episode: 4
Welcome to The Hydrogen Podcast!
In episode 004, Hydrogen stocks are on the move and I want to talk about what partnerships just occurred and why they are a big deal for the hydrogen industry. There are a few companies to keep your eye on so it is important to check out today's podcast. The lawyers want me to say that this is for educational purposes only and you need to research the information provided to draw your own conclusions in relation to any stock purchases.
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Hey again, everyone. Today, let's talk about some hydrogen stocks.
So the big questions in the energy industry today are, how is hydrogen the primary driving force behind the evolution of energy? Where is capital being deployed for hydrogen projects globally? And where are the best investment opportunities for early adopters recognize the importance of hydrogen. I will address the critical issues and give you the information you need to deploy capital. Those are the questions that will unlock the potential of hydrogen and this podcast will give you the answers. My name is Paul Rodden and welcome to the hydrogen podcast.
Today I came across this article from the Motley Fool titled Why Nikola, Plug Power and Bloom Energy stocks rose today. Well, it seems like it all started when Nikola announced it was planning to form a partnership with European pipeline company OGE And Iveco. Iveco being a subsidiary of CNH Industrial, and they make large vehicles like semis and other large on road and off road vehicles. So why is this announcement a big deal? Well, while so many people are scrambling to produce hydrogen, very few people have taken into account the transportation and distribution side of the market. And if you think holistically about a hydrogen market, if you have all of the production and no transportation or distribution, you're looking at a failing industry.
But now we have large players in hydrogen announcing to tackle that problem. And on top of that plug power is now said that it plans to create several partnerships this year to expand its presence in the growing hydrogen power business in Europe. For those of you who don't know, plug powers main staple is creating hydrogen fuel cells. And now they've announced a 50/50 joint venture with Renault a European automaker. And in that agreement, Renault is going to take plug powers fuel cells, and put those into commercial vans in Europe. And according to this article in The Motley Fool, the JV is seeking to claim more than 30% market share and European fuel cell power light commercial vehicles. Plug power is also stated that they're going to JV with Acciona. Acciona being a big supplier of renewable energy infrastructure. And those two are teaming up in a 50/50 JV to serve clients in Spain and Portugal, with the hopes of gaining a 20% market share in the green hydrogen business.
All of this gets even more interesting when you find that it comes off the heels of the new revamped European hydrogen backbone plan just released this week. Nicola has been in some hot water lately. But partnerships like this could be what the company is needed to reverse course. Plug power, on the other hand has been the darling for hydrogen stocks for almost a year. In June of 2020, their stock price was sitting at just around $4 compared to January 2021, when it was at $75. Now since then, it's come back closer to reality. Are they close today at $ 28.39.
I want to close out today talking about hydrogen ETFs. There's a relatively new ETF out from Defiance. What they're banking on is report put out by Bank of America, which is estimating that hydrogen is going to take 25% of all oil demand by 2050. And what that would do is boost a $200 billion industry to an $11 trillion industry and two and a half trillion in direct revenues by 2050. In an interview with CNBC, the Chief Investment Officer Sylvia de Blonsky echoed the statements in the report, highlighting that right now hydrogen is a massive investment opportunity. The defiance ETF is currently sitting at $25.90.
With their total net assets at 25.25 million and 975,000 of shares outstanding, the performance of the ETF has remained relatively flat since its inception in early March. That being said, if the news of Nikola and plug powers investments in Europe, are the start of legitimate investments in hydrogen distribution and transportation, I expect stocks and ETFs and hydrogen to go up. Alright, everyone, that's it for me today. You all take care. Stay safe. I'll talk to you later.
Hey, this is Paul. I hope you liked this podcast. If you did want to hear more. I'd appreciate it if you would either subscribe to this channel on YouTube, or connect with your favorite platform through my website at www.thehydrogenpodcast.com. Thanks for listening. I very much appreciate it. Have a great day.