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Countries around the world are setting aside massive amounts of funding for green hydrogen projects, aiming to develop a new alternative to fossil fuels. Germany is working on acquiring significant supplies of green and blue hydrogen in the Middle East as it weens off of Russian natural gas supplies. Green hydrogen is increasingly cost-competitive with rising oil and natural gas prices.

China, the world’s largest emitter of greenhouse gases, recently outlined plans to significantly increase their green hydrogen production by 2025 to meet the rising demand for renewable energy. Meanwhile, the US is beginning construction on the world’s largest green hydrogen project in Texas, likely to spur additional investment into the development of green hydrogen as demand for the alternative fuel rises.

Related ETF & Stocks: Global X Hydrogen ETF (HYDR), FuelCell Energy, Inc. (FCEL), Plug Power Inc. (PLUG)

Interest in Hydrogen Energy Ramps Up in Response to Russian Invasion, Climate Goals

Demand for hydrogen energy is primed to receive a significant boost as the European Union continues to look for ways to ween off Russian oil and natural gas imports. While hydrogen is not the only solution to counter the energy crisis, it is likely to play an increasingly important role in the renewable energy transition that should accelerate throughout the decade.

There are three main forms of hydrogen energy. Gray hydrogen, generated from natural gas, is not carbon neutral and has yet to see an uptick in demand as prices have soared alongside oil and natural gas. Blue hydrogen, produced from natural gas, yet the carbon emissions are captured and stored, meaning it is commonly referred to as carbon neutral or low carbon.

Green hydrogen, meanwhile, is produced by using excess renewable energy like solar and wind, and is viewed by many sectors as the key to harmonizing the intermittency of renewables, which is key for the EU to move through a rocky energy transition.

Plug Power CEO Andy Marsh recently told Yahoo Finance that the Russia-Ukraine war will accelerate the shift to green hydrogen and other forms of renewable energy.

Similarly, BloombergNEF and Rystad Energy reported that the global conflict is opening the door for additional investment into the green hydrogen resources. Per PV Magazine, Rystad believes the war in Ukraine has “turbocharged” the green hydrogen production sector, with green hydrogen becoming much more cost-competitive than its blue and gray counterparts.

The EU has already announced plans for a €300 million funding package for hydrogen development, and there are several European countries looking to boost their investment as well.

Germany Vice-Chancellor Robert Habeck recently went to visit the Middle East in hopes of securing supplies of natural gas, as well as green and blue hydrogen. According to…

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