The Hydrogen Trend: Toyota, Bill Gates, The White House, MMEX, and the Billion-Dollar Energy Shift | Caye International Bank (2024)

• April 10, 2024
• Luigi Wewege
• Equities, President

The global commodities market is no stranger to the phenomenon of mega trends, with different elements periodically taking the spotlight as the harbinger of innovation and sustainable development. As we stand on the brink of a new era, hydrogen is emerging as the latest contender, quietly usurping traditional frontrunners like lithium and electric vehicles (EVs) in the green energy race. Researchers highlight at least seven countries with substantial hydrogen potential.

This development, somewhat under the radar, has seen significant support from both Eastern and Western powerhouses: The UK government is funding at least one eleven billion pound scheme that will create twelve thousand jobs related to hydrogen energy, with Japan, through Toyota’s pioneering hydrogen fuel cell technology, and the United States, buoyed by strategic governmental initiatives and influential backers such as the government, Bill Gates and ventures like MMEX Resources.

Policy Catalysts and Strategic Investments

The transformative potential of hydrogen is being significantly underpinned by policies such as the U.S.’s 45V Clean Hydrogen Production Tax Credit, part of the Inflation Reduction Act. This policy is a testament to the U.S. government’s commitment to catalyzing the hydrogen economy, offering substantial incentives for low-emission hydrogen production. This initiative, coupled with the Department of Energy’s Regional Clean Hydrogen Hubs Program, is forecasted to unlock nearly $50 billion in hydrogen-related investments, setting a robust foundation for the hydrogen market’s expansion.

Parallel to policy advancements, corporations like MMEX Resources Corporation are making notable strides in both green and blue hydrogen projects, indicating a promising horizon for hydrogen’s role in reducing carbon intensity. The alignment of such initiatives with global sustainability goals underscores a growing consensus on hydrogen’s utility across various sectors.

Toyota and Electric Hydrogen: Pioneering the Charge

Toyota’s unwavering commitment to hydrogen as the future of automotive energy, and Electric Hydrogen’s ambitious gigawatt-scale electrolyzer deals, epitomize the industrial mobilization towards hydrogen energy. These efforts will bolster the technical feasibility of hydrogen-powered solutions and pave the way for its adoption in heavy-duty transportation and beyond.

Economic and Technical Horizons

Despite the enthusiasm, the path for hydrogen is strewn with economic and technical challenges, notably in fuel storage and production costs. However, the strategic emphasis on overcoming these barriers, through research and development and the scaling of technology, suggests a broad-based commitment to realizing hydrogen’s potential. The narrative around hydrogen is not just about its viability as a clean energy source but also about its ability to fortify global energy security by diversifying and sustainable energy sources.

Four Hydrogen Stocks To Watch

MMEX Resources Corporation (OTCPK: MMEX)

MMEX Resources Corporation stands out as a significant player in the clean energy landscape, particularly in the development of the hydrogen economy. With an impressive track record of milestones, MMEX is not just riding the hydrogen wave; it’s actively shaping its future. Based in Texas, the company is committed to the advancement of green and blue hydrogen projects, highlighting its dedication to a sustainable and low-carbon energy future. MMEX’s strategic efforts demonstrate its robust commitment to contributing significantly to the clean energy sector.

Linde (NYSE: LIN)

Linde is a global powerhouse in industrial gasses and engineering, with over a century of experience in hydrogen production. The company covers every aspect of the hydrogen value chain, including production, processing, distribution, and storage. Linde’s involvement in hydrogen extends to industrial and consumer applications, making it a leading supplier of green hydrogen. The company operates more than 500 hydrogen production plants worldwide, further cementing its position as a key player in the industry.

Air Products & Chemicals (NYSE: APD)

Air Products & Chemicals is a leader in the sale of industrial gasses and chemicals, serving a wide range of industries with its expertise and equipment. The company operates over 100 hydrogen plants and has the largest hydrogen distribution network globally. Its extensive patent portfolio in hydrogen-dispensing technology and involvement in over 250 hydrogen-fueling projects underscore its pioneering role in the sector. Air Products is also constructing the NEOM Green Hydrogen Complex in Saudi Arabia, aiming to supply green ammonia to Europe’s transport sector.

Cummins (NYSE: CMI)

Cummins is known for its innovative engines, filtration, and power generation products, specializing in diesel and alternative fuel technologies. In 2023, Cummins launched Accelera, focusing on zero-emissions solutions, including battery systems, fuel cells, ePowertrain systems, and electrolyzers. This initiative underscores Cummins’ commitment to the hydrogen economy, with its electrolyzer production in Minnesota marking a significant milestone in the company’s clean energy journey.

A Collaborative Future: The Keystone of Success

The journey towards a hydrogen-centric energy ecosystem emphasizes the need for collaborative engagement across governmental, industrial, and research domains. Supportive policy frameworks, alongside innovative technological advancements and visionary investments, are critical in navigating the economic and technical complexities of hydrogen adoption.