Blue hydrogen20 Oct 2020 23:40
Been here a while, happy to be back above my average so thought I'd share some thoughts while there's some interest on the board. Due to some other share interests I've ended up doing quite a bit of research on the green economy. In particular upcoming tech for motor vehicles. Some of my research as made me increasing bullish here.
It seems to me there is massive near term prospects for "blue hydrogen" which is hydrogen derived from natural gas.
Why?
Because of the political pressure to move to less polluting forms of transport hydrogen powered trucks are fast becoming a reality and the move is planned at scale.
Hydrogen fuel cells have distinct advantages over lithium ion batteries when it comes to powering trucks. I won't go into details but in short the economies of scale just don't work in the haulage industry for "Tesla" style batteries.
Toyota, Hyundai have already built proof of concept trucks and the hydrogen powered truck start up "Nikola" has been billed as the next Tesla.
The new hydrogen powered economy also has the backing of the oil giants like Shell as it provides demand for their gas and could use much of the existing infrastructure they have in place, since, hydrogen fuel cells need refilling like petrol.
"Blue hydrogen" is not as popular as "green hydrogen" - (hydrogen derived from wind solar etc) within the political establishment but even the most tree huggy eurocrat has to acknowledge one inescapable fact, that is, it is likely (lets face it certain) there will not be enough capacity in the renewable energy grid to power industry and the domestic supply by 2035, let alone, the millions of goods trucks that'll be needed to carry all the windmills and solar panels around.
In short policy makers are increasingly having to concede that hydrogen will need to come from natural gas sources for the foreseeable future and the demand for said hydrogen is set to soar. Which leaves a no debt, cash rich, growing natural gas supplier like JKX looking like a great bet for the future imo.
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