11/29/2023 0 Comments Plug power earnings call![]() Since the IRA was signed into US law just over a year ago, there’s been a 58% increase in low-carbon hydrogen project announcements, according to analysts at BloombergNEF. So you have to have a stable, consistent source of power that is producing hydrogen in the electrolyzer.” “In order to pay back on that capital cost, capacity utilization has to be very high. “There’s a massive capital cost in hydrogen, which is building the electrolyzer,” Norris said. ![]() Other challenges include storing it in a way that makes its use viable for things like moving vehicles. But that process is costly, which is why a lot of investors are skeptical. The cleanest form is known as green hydrogen, whereby an electrolyzer powered by renewable energy is used to split water into hydrogen and oxygen. For now, the most common (and cheapest) forms of production rely on fossil fuels. That can be done in a number of ways, some of which are cleaner than others. But unlike solar power or wind, hydrogen first needs to be extracted. Hydrogen, the basic chemical element that fuels the sun, has the potential to generate energy with hardly any CO2 emissions. For now, even card-carrying hydrogen evangelists are having to take a few steps back, as they await detailed guidance on how to take advantage of subsidies locked in the US Inflation Reduction Act. It’s the latest salvo in a controversial corner of green technology that, depending on who’s asked, is either a crucial piece in the puzzle to reduce greenhouse gas emissions or an over-priced, over-hyped distraction. He declined to specify which companies his short positions target. The Argonaut CIO said he’s “skeptical that the business models of a lot of these companies will work.” That’s why he’s built “a few shorts in hydrogen,” he said, referring to bets that share prices will fall. ![]() “It’s a complete waste of time, unfortunately,” London-based Norris said in an interview. (Bloomberg) - Hydrogen is a losing bet for investors interested in making money in the foreseeable future, according to Barry Norris, the founder and chief investment officer of UK hedge fund Argonaut Capital Partners.
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