The Future Of Hydrogen Energy In The UK

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The Future Of Hydrogen Energy In The UK

 The Future Of Hydrogen Energy In The UK

Hydrogen and Renewables – A partnership for the future

In the last few years, clean hydrogen has become the most talked-about topics when it comes to the policies of the governments and energy companies regarding the production of green and clean energy. There is enough evidence that these organisations, as well as the governments around the world will continue investing in this area in the coming future.

The primary reason behind this and Hydrogen being used as fuel, suddenly coming into the fore is the need for climate protection. In the last one-year, global policies around climate change have suddenly revved up. This year, in the UN Climate Change Conference (UNCCC), that is expected to be held from 9th to 19th November in Glasgow, United Kingdom, discussion on Hydrogen Energy and how it might be a cheaper and cleaner source is expected to hog the limelight in the Climate Change conversation.

The three major reasons behind this, as per some report published are said to be:

  • Hydrogen can help tackle the various critical energy challenge
  • Hydrogen is versatile in terms of supply and use
  • Hydrogen can enable renewables to provide an even greater contribution

However, the very same report also highlights the challenges that are expected to be faced by this industry. These challenges include the fact that in the current time period, the production of hydrogen from low carbon based energy is extremely costly and won’t become cheaper until economies of scale are achieved. For this, the usage of hydrogen energy must be ramped up globally and should be extended to other sectors such as transport, construction and power generation. One of the biggest problems currently is the regulations limiting the development of a clean hydrogen industry. To reduce the redundancy in any regulations that may not be required and are hindering the development of Hydrogen energy, the administration and the companies will have to work together.

Outlook for the Use of Hydrogen

A report by the International Renewable Energy Agency (IRENA) has stated that currently around 120 million tonnes of hydrogen are produced annually, out of which, almost around 66.66 per cent is pure hydrogen, while around 33.34 per cent is found mixed with other gases. This is equivalent to 14.4 exajoules (EJ), around 4 per cent of worldwide aggregate energy as well as non-energy use as per the IRENA statistics. The council for Hydrogen estimates 3000 filling stations by the year 2025, which will be able to power up around 2 million Fuel Cell Electric Vehicles.

Once the hydrogen production is properly established and integrated into the energy systems globally, the following energy and alternative fuel stocks can have a significant impact on their share price performances. Following is the brief outlook on their current share price performances, with a vision of wealth generation for the future.

AFC Stock Price Performance

As on 19th February 2020, at 08:30 A.M (Greenwich Mean Time), by the time of writing this report, the AFC Energy Plc Stock was trading at a price of GBX 31.90 per stock on the London Stock Exchange market, a decline in the value of 4.78 per cent or GBX 1.60 per stock, as opposed to the price of the stock on the previous trading day, which had been reported to be at GBX 33.50 per stock. The market capitalisation (M-Cap) of the stock stood at a value of GBP 155.06 million, with respect to the current market price of the stock of the company at the time of writing this report.

It has been reported that the AFC Energy Plc stock had gained around 524.63 per cent in value, in the last twelve months, since February 18, 2019, when the stock was trading at a price of GBX 5.1070 per stock at the time of the close of the market. It has also been reported that the company’s stock has gained approximately 591.22 per cent, in the last six months, in comparison with the stock price of GBX 4.615 at the time of the close of the market as on August 19, 2019. AFC Energy Plc’s stock has been reported to have gained 46.33 per cent, in the last one month time from the stock price of GBX 21.80 per stock that the stock set as on January 17, 2019.

The beta of the AFC Energy Plc’s stock has been reported to be at -0.1243, giving an idea that the movement in the stock price is inversely correlated to the movement of the comparative benchmark index.

PHE Stock Price Performance

As on 19th February 2020, at 08:35 A.M (Greenwich Mean Time), by the time of writing this report, the Powerhouse Energy Group Plc Stock was trading at a price of GBX 1.55 per stock on the London Stock Exchange market, an increase in the value of 10.71 per cent or GBX 0.15 per stock, as opposed to the price of the stock on the previous trading day, which had been reported to be at GBX 1.40 per stock. The market capitalisation (M-Cap) of the stock stood at a value of GBP 28.27 million, with respect to the current market price of the stock of the company at the time of writing this report.

It has been reported that the Powerhouse Energy Group Plc stock had gained around 258.80 per cent in value, in the last twelve months, since February 18, 2019, when the stock was trading at a price of GBX 0.432 per stock at the time of the close of the market. It has also been reported that the company’s stock has gained approximately 278.05 per cent, in the last six months, in comparison with the stock price of GBX 0.41 at the time of the close of the market as on August 19, 2019. Powerhouse Energy Group Plc’s stock has been reported to have gained 97.45 per cent, in the last one month time from the stock price of GBX 0.785 per stock that the stock set as on January 17, 2019.

The beta of the Powerhouse Energy Group Plc’s stock has been reported to be at -0.4770, giving an idea that the movement in the stock price, is inversely correlated to the movement of the comparative benchmark index.

IKA Stock Price Performance

As on 19th February 2020, at 08:40 A.M (Greenwich Mean Time), by the time of writing this report, the Ilika Plc Stock was trading at a price of GBX 41.60 per stock on the London Stock Exchange market, an increase in the value of 0.24 per cent or GBX 0.10 per stock, as opposed to the price of the stock on the previous trading day, which had been reported to be at GBX 41.50 per stock. The market capitalisation (M-Cap) of the stock stood at a value of GBP 41.82 million, with respect to the current market price of the stock of the company at the time of writing this report.

It has been reported that the Ilika Plc stock had gained around 14.76 per cent in value, in the last twelve months, since February 18, 2019, when the stock was trading at a price of GBX 36.25 per stock at the time of the close of the market. It has also been reported that the company’s stock has gained approximately 69.11 per cent, in the last six months, in comparison with the stock price of GBX 24.60 at the time of the close of the market as on August 19, 2019. Ilika Plc’s stock has been reported to have lost 8.57 per cent, in the last one month time from the stock price of GBX 45.50 per stock that the stock set as on January 17, 2019.

The beta of the Ilika Plc’s stock has been reported to be at 0.7069, giving an idea that the movement in the stock price, is less variable, as against the movement of the comparative benchmark index.

SMS Stock Price Performance

As on 19th February 2020, at 08:45 A.M (Greenwich Mean Time), by the time of writing this report, the Smart Metering Systems Plc Stock was trading at a price of GBX 522.00 per stock on the London Stock Exchange market, a decline in the value of 0.95 per cent or GBX 5.00 per stock, as opposed to the price of the stock on the previous trading day, which had been reported to be at GBX 527.00 per stock. The market capitalisation (M-Cap) of the stock stood at a value of GBP 594.41 million, with respect to the current market price of the stock of the company at the time of writing this report.

It has been reported that the Smart Metering Systems Plc stock had lost around 16.08 per cent in value, in the last twelve months, since February 18, 2019, when the stock was trading at a price of GBX 622.00 per stock at the time of the close of the market. It has also been reported that the company’s stock has gained approximately 14.83 per cent, in the last six months, in comparison with the stock price of GBX 454.60 at the time of the close of the market as on August 19, 2019. Smart Metering Systems Plc’s stock has been reported to have lost 8.74 per cent, in the last one month time from the stock price of GBX 572.00 per stock that the stock set as on January 17, 2019.

The beta of the Smart Metering Systems Plc’s stock has been reported to be at 0.6986, giving an idea that the movement in the stock price, is less variable, as against the movement of the comparative benchmark index.

Comparative Share Price Chart of AFC, PHE, IKA and SMS

(Source: Thomson Reuters) Daily Chart as on 19-February-20, before the closing of the LSE Market

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