Climate change and ecological sustainability constitute one of the most significant megatrends shaping society. This change creates both threats and opportunities that a successful investor should recognize.
On forums, discussion related to the energy sector has focused mainly on the Fortum and Wärtsilä threads. However, the energy sector as a whole is so vast that these companies’ operations only scratch the surface. Finland also has many smaller players whose operations are related in one way or another to, for example, energy production, product development, or financing in the sector, and the scale grows even further when the topic is examined globally. Perhaps for this reason, the discussion about the energy industry, technological development affecting the sector, and investment opportunities has also strayed into “wrong” threads.
This thread can be used for appropriate discussion on all matters related to the energy sector.
There has been quite a bit of discussion on the forum lately, for example, about fuel cells and the possibilities and problems of hydrogen. I once came across some related posts on the intranet, and a new press release on the topic was published recently:
The surplus of renewable energy from wind and solar can be used to produce hydrogen via electrolysis instead of leaving it unexploited due to limitations in the grid or lower demand. In addition, in order to electrify all sectors and to substitute the phase out of conventional power there will be a great demand of renewable electricity.
So according to that, there would be occasional surplus capacity that could be directed to electrolysis if needed. Does “conventional power” mean internal combustion engines in Finnish? So, in the long run, we’ll switch to electric motors, but in the medium term, hydrogen could be used to replace fossil fuels?
As I understand it, the point here is that, for example, the full output of clean wind and solar power could be utilized. These production methods have a large variance, sometimes producing too much and sometimes too little. Currently, both overproduction and “shortage” have burdened the electricity markets. Removing the “burden” of overproduction by directing their capacity to, for example, electrolysis during overproduction situations would surely boost the further construction of these energy production methods once one constraint is removed, and it would also revitalize the electricity markets as a whole.
If significant breakthroughs were made in the battery industry in the near future, it would likely have a negative impact on investments in fuel cells and hydrogen production. Everyone can assess for themselves how relevant this threat is.
My own assessment is that this is a so-called transitional alternative that will remain alive in its own niche IF breakthroughs in battery technology occur OR if a valid alternative method for electricity storage is invented.
Well, it goes like this: battery-powered cars will indeed be only a temporary state. Nowadays and in the future, driving and moving goods will happen with the help of hydrogen. And when it comes to new battery technology, I claim that nothing revolutionary will be invented anymore. And if it is invented, it won’t take away from the hydrogen economy at all. On the contrary, it will only support it further.
Hydrogen economy. It’s gaining momentum everywhere and will hit big within 5-10 years, like a million bars. Companies are currently vying for positions, and large firms are constantly acquiring smaller ones. I personally hold NEL, Plug, and Hexagon.
The hydrogen economy is coming, that much is clear, because currently the biggest problem is not energy production but its storage.
And cars are just a side story; ships, trucks, buses, and trains are where hydrogen is unbeatable. Hydrogen is gaining traction rapidly in countries like Japan, Korea, Switzerland, and Germany. And in the future, all hydrogen will be produced using wind and solar power.
Wind power will see a big step when, for example, GE gets 12mw turbines on the market; they have clearly better yield rates than the currently common 3-5mw turbines.
Hydrogen doesn’t work if you need 3x wind turbines and 3x solar panels for it compared to using batteries. And this also bypasses all the problems with its storage and transport. But feel free to fight against the laws of physics if you want.
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