Hydrogen is arousing strong interest among investors, in France and worldwide. According to a report published in May 2023 by the Hydrogen Council, which brings together leaders of multinational companies from different sectors intending to promote hydrogen-based solutions, the projects announced for the moment represent 320 billion dollars (approximately 294 billion euros) of direct investment by 2030.
Faced with the climate emergency, this gas could constitute an alternative, less CO emitting2, to fossil fuels, if it is, in the future, produced by electrolysis from low-carbon energies. Because it can be used “for energy production, transport, industry, agriculture or as an energy storage solution, in particular electricity”explains Madeline Ruid, research analyst at Global X ETFs, an issuer of exchange-traded funds (ETFs), these so-called “index” funds because they replicate stock market indices (they are still called “trackers”).
Such prospects arouse the greed of many companies, in the production, storage or distribution of hydrogen. Some are listed on the stock exchange, like the leaders in the sector such as Air Liquide, Linde, Air Products, Taiyo Nippon Sanso or the Norwegian company Nel ASA. Their market capitalizations are in the tens of billions of dollars.
Sign of the economic weight of this sector, stock market indices invested exclusively in the theme of hydrogen have emerged in recent years, including the Solactive Global Hydrogen Economy Index, or the S&P Kensho Hydrogen Economy Index. This allows some management companies to offer ETFs. It should be noted that these ETFs are continuously listed funds on the stock exchange and that they are traded like shares. Another advantage: their management fees are much lower than those of traditional investment funds. An option therefore to invest at a lower cost in companies in the hydrogen industry…
Fall in energy prices
Nevertheless, at present, about ten ETFs specializing in this theme are available. And some of them are listed on American stock exchanges and therefore denominated in dollars, so you can only invest in them if you have a securities account allowing access to foreign markets. If you are considering such an investment, it is therefore essential to be aware of the risk linked to the evolution of the greenback, the invested capital being in this case exposed to a risk of depreciation of the dollar against the euro.
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