The world is aggressively moving toward net-zero carbon emissions.
In fact, just this morning, the U.S. pledged to cut greenhouse gas emission by nearly half over the next 10 years. “That’s where we’re headed as a nation, and that’s what we can do if we take action to build an economy that’s not only more prosperous but healthier, fairer and cleaner for the entire planet,” said President Biden, as quoted by National Review.
Not only are solar companies, like First Solar (FSLR) and SunPower (SPWR) benefiting from the news, but so are electric vehicle companies, like Tesla (TSLA) and Nio (NIO). Even hydrogen – which Goldman Sachs says has $11 trillion market potential – could be explosive.
For one, governments and auto companies are working to put millions of EVs on the roads.
In fact, according to Yahoo Finance, “Biden administration recently laid out plans to spend nearly $200 billion over eight years to support the surging EV industry. The administration is rumored to be eyeing an expansion of the tax incentive to consumers, which could be a big tailwind to sales at Tesla and its rivals.”
Two, if we’re going to have millions of EVs on the roads, we’ll need charging stations. Biden, for example, wants 500,000 of them by 2030. Three, we’re already seeing massive developments with hydrogen fuel stations. Look at Nikola (NKLA) for example, which just announced a collaboration on hydrogen fuel stations with Travel Centers of America.
According to CNBC, “The plans include installing hydrogen fueling stations for heavy-duty trucks at two sites in California for TravelCenters of America, which is the largest publicly traded company that runs full-service travel centers in the U.S. The initial stations are ‘a first step for the parties to explore the mutual development of a nationwide network, according to Nikola.”
Four, global auto supplier Bosch just announced it would invest $1.2 billion in hydrogen fuel cell technology through 2024. The company believes the market could be worth $482. Billion by 2030 – with an annual growth rate of 65%.
No wonder green investors are excited.
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