Green Power: The clean investible force
We all use power in our everyday lives. As global consumption and demand for power continue to rise, the world is trying to tackle climate change at the same time and move to greener, cleaner energy sources. Clean energy solutions include wind, solar, and even hydrogen. So where does hydrogen energy fit in the future of global energy?
What is green Hydrogen?
Green hydrogen is produced by splitting water into hydrogen and oxygen using an electrolyzer powered by electricity from green energy sources such as wind and solar, creating even more green energy from an initial green energy source 😊
How does it work?
Hydrogen fuel cells produce electricity by combining hydrogen and oxygen atoms. The hydrogen reacts with oxygen across an electrochemical cell similar to that of a battery to produce electricity, water, and small amounts of heat.
What are some applications of Hydrogen energy?
- Fuel-cell hydrogen electric cars and trucks 🚗 🚚
- Container ships powered by liquid ammonia made from hydrogen 🚢
- “Green steel” refineries burning hydrogen as a heat source rather than coal
- Hydrogen-powered electricity turbines that can generate electricity at times of peak demand to help firm the electricity grid
Why is the push for clean energy so critical?
Some countries that have committed to the Paris Accord to reduce emissions are already falling behind emission targets. Given the energy shortages and supply chain issues being experienced in late 2021, the alternative energy space is attracting even more attention. Green hydrogen is a possible solution with abundant supply and clean emissions.
By 2050, it is expected that there will be $11 Trillion in Hydrogen investments 😲 (Goldman Sachs Green Hydrogen equity research report, September 2020). And the more Research and Development allocated to Hydrogen Energy, the lower the cost to produce energy will likely become. In Australia, the Federal and state governments have publicly committed to creating a “Hydrogen Valley”, similar to “Silicon Valley” is for Technology, to show more commitment to carbon emission targets.
How to Invest in Green Hydrogen?
There are a few options investing in Australia to gain exposure to the green hydrogen space. Many big ASX listed names like Fortescue, BHP, Macquarie Bank and AGL are investing in green hydrogen as a part of their business, albeit small percentages. These are all found in STW ETF, the ASX 200 ETF Tracker. For those who choose to invest in ETFs that include companies making green energy a part of their focus, they can play a small but important part in pushing us on the path to a cleaner, greener future 🌱
Author: Mark Gardner, Head of Trading at Maqro Capital
Don’t have the Raiz App?
Download it for free in the App store or the Webapp below:
Important Information
If you have read all or any part of our email, website, or communication then you need to know that this is factual information and general advice only. This means it does not consider any person’s particular financial objectives, financial situation, or financial needs. If you are an investor, you should consult a licensed adviser before acting on any information to fully understand the benefits and risk associated with the product. This is your call but that is what you should do.
You may be surprised to learn that RAIZ Invest Australia Limited (ABN 26 604 402 815) (Raiz), an authorised representative AFSL 434776 prepared this information.
We are not allowed, and have not prepared this information to offer financial product advice or a recommendation in relation to any investments or securities. If we did give you personal advice, which we did not, then the use of the Raiz App would be a lot more expensive than the current pricing – sorry but true. You therefore should not rely on this information to make investment decisions, because it was not about you for once, and unfortunately, we cannot advise you on who or what you can rely on – again sorry.
A Product Disclosure Statement (PDS) for Raiz Invest and/or Raiz Invest Super is available on the Raiz Invest website and App. A person must read and consider the PDS before deciding whether, or not, to acquire and/or continue to hold interests in the financial product. We know and ASIC research shows that you probably won’t, but we want you to, and we encourage you to read the PDS so you know exactly what the product does, its risks and costs. If you don’t read the PDS, it’s a bit like flying blind. Probably not a good idea.
The risks and fees for investing are fully set out in the PDS and include the risks that would ordinarily apply to investing. You should note, as illustrated by the global financial crisis of 2008, that sometimes not even professionals in the financial services sector understand the ordinary risks of investing – because by their nature many risks are unknown – but you still need to give it a go and try to understand the risks set out in the PDS.
Any returns shown or implied are not forecasts and are not reliable guides or predictors of future performance. Those of you who cannot afford financial advice may be considering ignoring this statement, but please don’t, it is so true.
Under no circumstance is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.
This information may be based on assumptions or market conditions which change without notice and have not been independently verified. Basically, this says nothing stays the same for long in financial markets (or even in life for that matter) and we are sorry. We try, but we can’t promise that the information is accurate, or stays accurate.
Any opinions or information expressed are subject to change without notice; that’s just the way we roll.
The bundll and superbundll products are provided by FlexiCards Australia Pty Ltd ABN 31 099 651 877 Australian credit licence number 247415. Bundll, snooze and superbundll are trademarks of Flexirent Capital Pty Ltd, a subsidiary of FlexiGroup Limited. Lots of names, which basically you aren’t allowed to reproduce without their permission and we need to include here.
Mastercard is a registered trademark and the circles design is a trademark of Mastercard International Incorporated.
Home loans are subject to approval from the lending institution and Raiz Home Ownership makes no warranties as to the success of an application until all relevant information has been provided.
Raiz Home Ownership Pty Ltd (ABN 14 645 876 937), an Australian Credit Representative number 528594 under Australian Credit Licence number 387025. Raiz Home Ownership Pty Ltd is 100% owned by Raiz Invest Australia Limited (ABN 26 604 402 815).
