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The World’s Largest Asset Manager Just Bet $200 Million on Hydrogen


In the world of finance, when a heavyweight asset manager black rock (NYSE:noir) moves, everyone listens. That’s because Blackrock is the largest asset manager in the world, with around 10 trillion dollars in assets under management. If Blackrock were its own country, it would be the third largest economy in the world behind the United States and China. Well, Blackrock just made a wholesale move — into hydrogen.

Concretely, the firm has just put $200 million in a small energy company that my team says will be the “next Tesla.” This has increased his stake by more than 20% in recent months.

Blackrock now owns nearly 60 million shares of that company.

The World’s Largest Asset Manager Just Bet $200 Million on Hydrogen

And curiously, this “next Tesla” is not an electric vehicle maker, battery company, charging station builder or solar project developer.

It is rather a hydrogen company which the world’s largest asset manager is betting big on.

The dawn of a new energy economy

Before going any further, let me first say that, yes, I am well aware of the history of hydrogen.

It’s been touted as a viable clean energy source since the 1970s. Yet since then, it hasn’t been used to do much when it comes to powering our world. The last 50 years of the hydrogen economy have been characterized by little more than a series of false starts.

But there comes a time when every new technology has its “moment.” A previously unproven technology proves itself and continues to change the world.

Hydrogen has its time.

We are sitting in the middle of a global energy crisis. Fossil fuels won’t solve it, nor will solar or wind power.

What will be?

Hydrogen – and to understand why, we need to review Chemistry 101.

Back to chemistry

Reminder of the periodic table. Hydrogen is the lightest element in the universe. As such, you can fit many more H atoms into a finite space than, say, lithium atoms. Therefore, any power source made with hydrogen will be infinitely more energy dense than one made with something else.

The World’s Largest Asset Manager Just Bet $200 Million on Hydrogen

This has huge implications.

In transportation markets, greater energy density means that fuel cells have longer ranges and faster refueling times than batteries. Therefore, hydrogen vehicles are expected to drive further, recharge faster and last longer than electric vehicles.

In stationary markets, this means they have more consistent and robust power output. Hydrogen storage solutions are expected to provide more reliable backup power for data centers and utility companies than battery energy storage systems.

And in energy markets, that means hydrogen fuel is more transportable. It can be pumped through gas pipelines (unlike other “clean” energy).

Don’t make a mistake. Hydrogen has enormous added value in the world of clean energy.

So much so, in fact, that my team and I believe our world will inevitably be fueled by it. Trucks, planes, boats, heating our homes, backup power — hydrogen everything.

To this end, we are convinced that these actions will be part of the best performing stocks of the 2020s.

Alas, the wise investor will ask himself at this stage: Why now?

After all, the periodic table hasn’t changed in the last 50 years. So why will hydrogen take over in the 2020s?

The hydrogen economy is at a ‘tipping point’

We think the stars have finally aligned and the hydrogen economy will “switch” into hypergrowth mode this year.

Of course, the elephant in the room is the Russia–Ukraine War. This has driven oil and natural gas prices to almost unaffordable levels. Yet solar and wind are not quite there in their ability to enable the world to completely end dependence on fossil fuels.

So, in stages, hydrogen. The energy source is both clean and cheap, yet powerful and abundant enough to meet global electricity demand.

The geopolitical context has never been as favorable as it is today.

At the same time, the costs also fell. Thanks to advanced technology and economies of scale, the costs of hydrogen fuel cells have dropped by 60% over the past 10 years. Deloitte expects these costs to fall below the costs of electric batteries and combustion engines within a few years.

The World’s Largest Asset Manager Just Bet $200 Million on Hydrogen

the technology has improved considerably. Technological breakthroughs and falling renewable energy costs have led to a new era of scalable “green hydrogen” production. It can now be produced from renewable energy sources, such as solar and wind, in a cost-effective way. It no longer depends on natural gas, which was historically used to produce most hydrogen.

In other words, while the periodic table hasn’t changed in the past 50 years, everything else has. And for the first time, all the growth drivers came into play at the same time.

In the words of Matthew Blieske, Shell(NYSE:SHEL) global hydrogen product manager:

“[In the past] there was a policy missing, or the technology wasn’t quite ready, or people weren’t so serious about decarbonization. We no longer see these barriers.”

The hydrogen economy will swing into its long-awaited renaissance in the 2020s, creating this Morgan Stanley (NYSE:MRS) considers as a $11 trillion hydrogen market in the coming decades.

The Last Word on Hydrogen

The story of hydrogen as a viable clean energy source is riddled with empty promises and shattered dreams.

But this time it’s different. Finally, hydrogen is poised to reshape the global energy landscape with ultra-affordable, energy-dense, reliable and transportable clean energy. It emerges as all the countries of the world seek to achieve energy independence. And therefore, it is the only source of energy capable of doing this in a cost-effective way.

Investors who bet early on this revolution will win big. And in our Innovation Investor portfolio, we’re betting big.

But that’s not all.

In addition to the “next Tesla”, we also own a tiny $3 stock that is at the forefront of a “battery forever”. Together with hydrogen, it will help redefine the global energy grid over the next decade.

As large as our best stock of hydrogen is, this little “battery forever” stock could be even bigger. Discover all the details.

As of the date of publication, Luke Lango had (neither directly nor indirectly) any position in the securities mentioned in this article.

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