Hydrogen is the first element in the periodic table, a colorless, odorless and tasteless gas that occurs in combination with oxygen as water. Hydrogen is used both as a heating gas and in fuel cells, as an energy storage in Power to X applications with renewable energies and as an alternative to fossil fuels.
Nobel laureate Wilhelm Ostwald said as early as 1884:
“The fuel cell is a greater achievement of civilization than the steam engine and will soon banish the Siemens generator into the museum.”
Ostwald made a mistake in his time, but now, in the context of climate change and renewable energies, the above-mentioned implementation has become probable. There is currently a high level of innovation in the areas of production, storage and consumption in the hydrogen sector, which gives reason to hope that green technology will soon be implemented. Research firms forecast an average growth rate in the sector of around 10% annually until 2025.
The creation of portfolios in a small sector with a small number of volatile company shares presents a challenge, with the claim of being up-to-date. The uncertainty of many investors with regard to the enforcement of the sector presents itself in the eye of the author as an opportunity to invest. The broad range of applications paired with the technology will certainly provide the market with strong growth over the next ten years.
According to the author, the uncertainty of many investors stems from a lack of experience in daily dealings and media reports that are strongly focused on batteries.
Particularly noteworthy is the minimum variance portfolio optimised from equities in the sector, which has a lower volatility than the S&P 500 and demonstrably reduces real economic risks.