Pure-play hydrogen stocks have had a phenomenal year and are expected to see further growth as governments continue to unveil net zero plans to decarbonise.
The sector received a major boost in July when the EU released its vision to accelerate the adoption of green hydrogen to meet its goal of net zero carbon emissions by 2050, while the Kingdom -Uni has supported hydrogen in its ten-point plan for an industrial revolution.
Related stock prices continued to rise during the year through November 26. A selection of popular stocks includes UK ITM Power focused on green hydrogen, up 369%, the US fuel cell-focused Plug Power stock, up 707% and the French electrolyser developer McPhy, up 820% (all in GBP terms). They are by no means exceptional for the sector.
“The market rates these stocks as hyper-growth stocks like Internet stocks or Tesla, and they are taking off as hydrogen developments begin to be taken into account,” says Yong-Liang Por, visiting contributor at the Institute. of Energy Economics and Financial. Analysis.
“Financial markets these days are less concerned with bottom line as long as companies can show revenue growth”