Hydrogen accounts for less than 5pc of the world’s energy supply, and less than 2pc in Europe, a figure that has been pretty stable in recent years. Yet since the start of 2019, shares of companies in the supply chain have been on a tear. Some have risen more than 1,000pc, leap-frogging their oil and gas counterparts, with Aim-listed fuel cell maker Ceres Power and AFC Energy reaching valuations of more than £2bn and £464m respectively. For many in the sector, the rally is being driven less by current earnings or profitability than by the enormous hopes and expectations being pinned on hydrogen as a major part of the energy mix in decades to come. It emits no carbon dioxide while burned, so politicians around the world are counting on it to help cut greenhouse gas emissions in line with the Paris agreements to rein in global warming. Billions of dollars are set to be poured into the sector. Yet uncertainties, from the vast production costs to logistics and developments in competing technologies, threaten to block hydrogen’s progress. Have the stock valuations run away with themselves?
Telegraph 30th May 2021 read more »