Powering the Future: Unveiling the Potential of Hydrogen Stocks on ASX
Team Veye | 22-Jul-2023
Australia’s focus on hydrogen market
Australian markets (hydrogen stocks asx) are increasing the global demand for clean energy and the transition away from fossil fuel. The government has recognized the potential of hydrogen and has set ambitious targets to develop a hydrogen industry in the country. In 2019, the National Hydrogen strategy was launched, aiming to establish Australia as a major global player in the market by 2030.Additionally; Australia is strategically positioned to export hydrogen to international markets. The country has signed several agreements with countries such as Japan, South Korea, and Germany to explore opportunities for hydrogen exports. Australia has several companies that are active in hydrogen industry from producer and suppliers to technology developers and investors. The biggest hydrogen companies in ASX are Fortescue Metals Group Limited (ASX: FMG) with a market cap of $69.40B, Woodside Energy Group Ltd. (ASX: WDS) with a market cap of $69.11B, Santos Limited (ASX: STO) with a market cap of $25.11B, Origin Energy Limited (ASX: ORG) with a market cap of $14.88B, and APA Group (ASX: APA) with a market cap of $11.50B.
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Hydrogen, The future of clean energy
When the whole world is grappling with the urgent need to transition to clean and sustainable energy sources, hydrogen is emerging as a frontrunner with immense potential. Very often referred to as “fuel of the future”, hydrogen offers a several advantages, including its abundance, veracity, and zero-emission component. Production methods involve stream methane reforming; this involves separating hydrogen gas from natural gas. The other prominent methods include electrolysis, biomass gasification, and solar driven process.
Application -Hydrogen powered fuel cell vehicles (FCVs) are gaining traction as a viable alternative to conventional gasoline powered vehicles.. Fast refueling and longer driving ranges compared to battery electric vehicles. FCV’s have great potential in reducing the carbon emissions.
Energy storage is the ability to store energy efficiently when demand is high, providing a reliable and consistent energy supply.
Industrial applications- The myriad of industries such as petroleum refineries, metal production, and chemical manufacturing, rely hydrogen as crucial component.
Heating and power generations- Hydrogen combustion can be used in heating systems and power plants to generate heat and electricity.
Hydrogen Target by different nation’s
Australia has set target of producing hydrogen at less than AUD 2 per kilogram by 2030, making it cost completive with other energy sources. china targeting for 1 million fuel cell vehicles on the road and 5GW of hydrogen fuel cells capacity by 2030.southkorea has set target for 6.2 million hydrogen fuel vehicles and 15GW of hydrogen fuel cell capacity by 2040.Germani has aimed for 10GW of hydrogen electrolyzer capacity by 2040,and Japan planned to achieve 800,000 fuel cell vehicles and 5.3 million fuel cell systems by 2030.U.S department of energy has proposed a comprehensive hydrogen energy Earth shot initiative with the goal of reducing the cost of clean hydrogen by 80% to $1 per kilogram in one decade.
Obstacles and Future outlook
The infrastructure for hydrogen production, storage, and distribution needs immense development. More over reducing the costs of electrolysis and scaling up renewable hydrogen production are priority areas for making hydrogen more economically viable.
As per the hydrogen council, a global industry led initiative anticipate that the hydrogen could meet 18% of the worlds energy demand by 2050.The IEA has also projected that the hydrogen could have the potential contributing 13% of the final energy consumption by 2070 under sustainable development scenario.
Australia has various companies that are active in the hydrogen industry, from producers and suppliers to technology developers and investors. The biggest hydrogen companies on the ASX are as follows:
Fortescue Metals Group Limited (ASX: FMG)
Fortescue Metals Group Limited is a diversified mining company headquartered in Perth, Western Australia, with a market cap of $69.40 billion. The company is primarily engaged in the exploration, development, production, processing, and sale of iron ore. The company is also building capex in the hydrogen production theme and looking to become a sizeable producer of green hydrogen and green ammonia. The company plans to utilize renewable energy sources to produce hydrogen to power its mining operations and potentially export it.
Woodside Energy Group Ltd. (ASX: WDS)
Woodside Energy Group Limited, an Australian well known Energy Company with a market capitalization of $69.11 billion, is involved in the exploration of hydrogen as a potential future fuel source. The Company is potentially engaged in various hydrogen projects, including a pilot plan in Western Australia that mainly uses solar power to produce hydrogen from water.
Santos Limited (ASX: STO)
Santos Limited is another major Australian Natural gas producer with a market capitalization of $25.11 billion that is investing I blue hydrogen production. The company is planning to produce hydrogen from natural gas with carbon and store it at its Moomba plant, situated in South Australia.
Origin Energy Limited (ASX: ORG)
Origin, one of the major energy companies with a market capitalization of $14.88 billion, is investing in a green hydrogen company. The company forays in business and its investment in hydrogen production from renewable energy sources at its Eraring power station in New South Wales.
APA Group (ASX: APA)
APA is also one of the largest natural gas infrastructure companies with a market capitalization of $11.50 billion and is investing in the development of hydrogen pipelines and associated infrastructure. The company manages several hydrogen-based projects underway, including the Hy-Energy Zero Carbon Hydrogen project in Western Australia.
Penny stocks that are investing in hydrogen industry
QEM Ltd (ASX: QEM)
QEM Limited is an Australian company with a market capitalization of $31.58 million, exploring and developing vanadium and oil shale project in the Julia Creek area of North Western Queensland. Julia Creek Project is the sole project where the company is committed to study the hydrogen opportunity and investing in the industry.
Province Resources Ltd (ASX: PRL)
Province Resources Ltd is a natural resources company with a market capitalization of $48.44 million currently focused on the mineral exploration and development of copper, gold, nickel, cobalt, vanadium and other mineral opportunities. Province Resources (PRL) and its partner Total Eren have completed a scoping study for their planned Hy-Energy green hydrogen development project in WA’s Gascoyne region.
Lion Energy Ltd (ASX: LIO)
Lion Energy Limited (LIO) is an energy company with a market capitalization of $10.73 million engaged in oil & gas exploration, development and production and investment in the oil & gas industry. Lion is planning as early mover in Australia for zero carbon hydrogen production and dispensing in Australia for heavy mobility, securing the future with hydrogen.
Pilot Energy Ltd (ASX: PGY)
Pilot Energy Limited (PGY) is an energy company with a market capitalization of $25.18 million. Engaged in oil and gas production, development and exploration activities and is pursuing the diversification and transition to the development of renewable energy, hydrogen and carbon based projects by leveraging its potential in existing oil and gas tenements and infrastructure.
Eden Innovations Ltd (ASX: EDE)
Eden Innovations Ltd is an energy company with a market capitalization of $8.99 million, the company is constantly developing interest towards Eden’s pyrolysis process to produce carbon and hydrogen from natural gas following a series of preliminary meetings with one very large US company have been held, and undergoing. Producing Carbon Nanotubes with a combination of 75 % by mass, and Hydrogen 25 % by mass from Natural Gas
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Frequently Asked Questions (FAQ)
What are the best hydrogen stocks to buy in Australia?
The best 5-hydrogen companies in Australia with market potential that are investing in hydrogen are an attractive buy are: Fortescue Metals Group Limited (ASX: FMG) with a market cap of $69.40B, Woodside Energy Group Ltd. (ASX: WDS) with a market cap of $69.11B, Santos Limited (ASX: STO) with a market cap of $25.11B, Origin Energy Limited (ASX: ORG) with a market cap of $14.88B, and APA Group (ASX: APA) with a market cap of $11.50B.
Are hydrogen stocks a good investment?
At present green hydrogen must be produced through other renewable energy sources, it is yet to achieve success profitability, therefore investors will have to look for the right climate, and only in the long run the financial outcome can be expected.
Who is producing hydrogen in Australia?
Hazer Group limited (ASX: HZR) with a market capitalization of $100.56 million, is developing low emission process for producing hydrogen from methane. The company is working on various pilot projects along with a plant in Western Australia that will produce hydrogen that is applicable in the fuel cell vehicles.
What is the hydrogen sector ASX?
Asx hydrogen stocks are listed companies in Australian securities exchange that produce and market hydrogen as a renewable source of energy. Hydrogen can be used in fuel cells to generate power with zero carbon emission.
What are the top 3 green hydrogen stocks?
The best green hydrogen manufacturing, listed companies in ASX are Fortescue Metals Group Limited (ASX: FMG) with a market cap of $69.40 billion, Origin Energy Limited (ASX: ORG) with a market cap of $14.88 billion, and Lion Energy Limited (LIO) is with a market capitalization of $10.73 million.
Is it good to invest in hydrogen?
Australian markets are increasing the global demand for clean energy and the transition away from fossil fuel. The government has recognized the potential of hydrogen and has set ambitious targets to develop a hydrogen industry in the country.
Which hydrogen ETF is best?
Global X Hydrogen ETF AUD (ASX:HGEN) is a specific Hydrogen based ETF seeks to invest in companies that have better improved outlook in the future, and leading in advancement of the global hydrogen industry.
Who are biggest green hydrogen companies?
The biggest green hydrogen manufacturing, listed companies in ASX are Fortescue Metals Group Limited (ASX: FMG) with a market cap of $69.40 billion, Origin Energy Limited (ASX: ORG) with a market cap of $14.88 billion.
What is the prediction for hydrogen stock?
The predictions that the investing in renewable hydrogen shares provides investors with the potential to profit from the shift to clean energy transition source. Many companies are participating the way for green hydrogen as future for fuel source.
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