Yes!! The “green hydrogen” could become a market report of 12 trillion dollars. How to play it? Read here
Calling it a once-in-a-lifetime opportunity, analysts estimate that the addressable market could be worth 10 trillion euros ($ 11.7 trillion) by 2050, divided between Asia, the United States and Europe.
London-based analysts, led by Alberto Gandolfi, say that what is also called e-hydrogen could become the biggest consumer of electricity and double energy demand in Europe, double their estimates on capital spending on renewable energy, reconfigure the gas network, solve the problem of the season. energy storage and provide a second life to conventional thermal energy producers.
In July, analysts note, the European Commission published its hydrogen 2030 strategy, which is the first concrete document detailing the role it should play in the European economy. Against a current installed base of 0.1 gigawatts, the European Union is targeting 6 gigawatts by 2024, 40 gigawatts by 2030 and 500 gigawatts by 2050.
What is Green Hydrogen? Why should we use it? Read Here
“Achieving these ambitious targets has important implications for the energy demand needed to power electrolyzers, renewable energy capacity and gas infrastructure,” they say. The EU document points to total investments of up to 400 billion euros until 2030, with up to 47 billion euros for electrolyzers alone.
Gas transmission system operators in Italy, Ireland, Canada, the UK and France already have projects to assess the role of hydrogen.
According to Goldman Sachs, there are three main ways to be exposed to e-hydrogen. The first is through public service companies such as RWE, EDP and its listed subsidiary EDP Renováveis, Enel, Iberdrola, SSE and Orsted. Goldman upgraded Italy’s Snam to buy with sell, given the long-term opportunity in renewables, and also named Enagas as a gas infrastructure company that could see new investment. The conversion of gas plants to hydrogen turbines could boost combined cycle gas turbine operators Uniper, Engie and RWE.