Is hydrogen the future for clean energy investing?

Clean energy investing has been attracting attention across the industry but while awareness is growing, investors face the challenge of identifying green technologies which have a realistic chance of delivering decent profits.
This dilemma is highlighted by the hydrogen fuel technology sector. Despite hydrogen being the most abundant element in the universe, the cleanest alternative energy available to us is being largely overlooked.
A recent report entitled Energy Evolution: An Analysis of Alternative Vehicles and Fuels to 2100, published by the National Hydrogen Association (NHA), compared more than 15 of the most promising distinct fuel and vehicle alternatives and hydrogen came out on top.
The NHA clearly has an interest in promoting this clean fuel, but the organisation points out it collated the data from respected expert groups such as the US Department of Energy and US Fuel Cell Council, who reviewed their findings.
The report’s conclusion was that hydrogen ‘is secure, available, environ­mentally sustainable and economically viable’ but that ‘more action, investment and commitment is needed today to transition today’s transport­ation technologies into tomorrow’.
The growing market for electric and hybrid cars is testimony to the consumer’s demand for clean energy. International pledges by leading states for reducing their carbon emissions add to the potential for returns within the clean energy industry, but despite its zero carbon emission credentials hydrogen remains on the fringe of the green discussion.
Swedish manager Jan Rosenqvist runs the Gustavia Pure New Energy fund, a clean energy specialist fund, and has a small allocation to the hydrogen fuel sector. He believes that although it is a very interesting sector, it will be some time before we start to see companies making a profit from this technology.
‘At the moment we are just keeping an interest in the sector,’ says Rosenqvist. ‘The product itself is much more complicated if you go for a mass market and it has to improve in the cost side before it becomes a commodity.’
‘We saw a shift around five years ago as a lot of companies set up big program on fuel cell technology. They have since shifted to electricity and I think they made that shift because they couldn’t see a future as the cost was too high.’
The manager, who currently has a 2-3% exposure to the market, still believes it holds potential for the future.
http://citywire.co.uk/global/is-hydrogen-the-future-for-clean-energy-investing/a446930