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Following the previous hydrogen forecasts from Morgan Stanley and by Goldman Sachs(Goldstein, 2020, September 23), the BofA team (Alpert, 2020, September 30), McKinsey counted five major industries will replace their fossile energy with new type of renewable energy (McKinsey, 2020, October 5). They are transportation, power generation, industrial fuel, fuel for residential and commercial buildings. The competition among wind power, solar power, hydropower, and nuclear power has gotten high. By 2050, according to Bank of America research team, clean-hydrogen industries could see $2.5 trillion in annual revenues (Alpert, 2020, September 30).
Knowingly, Bill Gross bets on the two companies: Energy Vault store solar and wind power for use on cloudy or windless days; Heliogen, uses mirrors to generate the intense heat needed to make hydrogen, as well as steel and cement (Hodari, 2020, October 6). They are not in public stock markets yet backed by SoftBank. McKinsey highlighted transport industry where fuel cell electric vehicles (FCEVs) might be better for American trucks running long distance Plug Power (PLUG) and ITM Power (ITMPF) (McKinsey, 2020, October 5). These two companies are publicly traded, so you can invest them.
The BofA survey listed the industrial gas giants: Linde (LIN), Air Liquide (AIQUY) and Air Products and Chemicals (APD); hydrogen fuel cell specialists: Plug Power (PLUG) and ITM Power (ITMPF); the motor vehicle suppliers:Cummins (CMI), Daimler (DDAIF), Volvo (VLVLY), Toyota Motor (TM) and Hyundai Motor (HYMTF) (Alpert, 2020, September 30). They are all good options for long-term investment.
When markets show no clear direction, it is time for value investors to identify future trends that will come soon and dominate markets in the long run. When you are on the right strong wave, you can ride long.
Rachel Kim (2020, October 7). New Energy Markets are Getting Hot, The Blue Ocean Management.com, retrieved from: https://theblueoceanmanagement.com/2020/10/07/new-energy-markets-are-getting-hot/
References are as follows:
Alpert, 2020, September 30, Barron’s.com
Goldstein, 2020, September 23, Barron’s.com
Hodari, 2020, October 6, Wall Street Journal
McKinsey, 2020, October 5, Wall Street Journal and GLOBE NEWSWIRE