Rising oil prices to boost fuel cell market

Looking at oil prices these days may have you thinking that the sky’s the limit. However, what’s unfavorable, or even detrimental, to one side can benefit the other. Price hikes will just pump more money into alternative energies and R&D. Specifically, green hydrogen and its use as a source of electric power, heat and cooling energy could, along with carbon capture, see unprecedented growth, especially after it took so long for the world to start waking up to its potential.

One country’s love for fracking won’t be able to satisfy global demand. By using the new technique, the United States is now able to extract about 10 million barrels from the ground each day. Elsewhere, though, production is falling. President Donald Trump’s shredding of the Iran deal, followed by the threat of renewed sanctions, is just one of the reasons.

Global consumption could reach 100 million barrels a day in 2018. Countries such as China are buying up all the black gold they can get their hands on. In 2017, at an average 8.4 million barrels per day, the People’s Republic became the world’s top crude oil importer. A key factor in creating the massive demand has been the increase in vehicles: North of 25 million are registered in China per annum.

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FuelCell Energy convinces Connecticut

FuelCell Energy (Nasdaq: FCEL) increased its lobbying of lawmakers, helping to make them see the great potential that fuel cells have. In Connecticut, its determination has paid off. The state has set a 40 percent by 2030 renewable target, with fuel cells said to be playing a major role. It’ll be interesting to see what size power plants will show up on the books. The state government had requested bids for projects worth more than USD 1.6 billion altogether, the company said. FuelCell Energy’s stock price could skyrocket in the aftermath of winning these bids. The manufacturer also has the means to finance such deals, as credit facilities and convertible preferred stock are readily available.

Risk warning

Share trading can result in a total loss of your investment. Consider spreading the risk as a sensible precaution. The fuel cell companies mentioned in this article are small and mid-cap ones, i.e., they may experience high stock volatility. This article is not to be taken as a recommendation of what shares to buy or sell – it comes without any explicit or implicit guarantee or warranty. All information is based on publicly available sources and the content of this article reflects the author’s opinion only. This article focuses on mid-term and long-term prospects and not short-term profit. The author may own shares in any of the companies mentioned in it.

Written by Sven Jösting

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