The accomplishments of Elon Musk have changed the lives of everyone, from the battery to power your home to the impressive electric vehicles that prove that green technology and innovation can be achieved simultaneously. The Tesla vehicles are a resounding breakthrough that showcase the flexible power source of electricity that was only once capable of powering your washer and dryer. The invention and improvement of the lithium battery enabled us to power our lives "on the go". No longer are we tethered to devices that are attached to a three-foot cord.
The adaptation of electricity as a portable power source has caught on like wildfire, much to the detriment of other green fuel sources like hydrogen. One reason for this is that Elon Musk once referred to fuel cells, a legitimate green-power source that produces electricity through the use of hydrogen, as "fool cells". One obvious reason is that he has developed a competing technology which has proven to be quite impressive, but it must be realized that lithium batteries are not the only game in town.
Hydrogen will be a very important source of power for years to come and there were recent events that spoke volumes to verify this statement. On September 29, Saudi Aramco, a Saudi Arabian a predominately oil energy concern delivered 40 tons of blue ammonia which is a derivative of hydrogen to assist Japan in reducing its’ carbon emissions 26% by 2030 from 2013 levels.
This shows the commitment of many countries around the world that are embracing green technology and that an oil-rich nation such as Saudi Arabia is looking to diversify so that they can adjust when the demand for oil starts to wane. Another event was the "green bond" underwriting by Goldman Sachs which is a staunch endorsement for the hydrogen sector.
There are two stocks in the hydrogen fuel cell sector, Ballard Power Systems Inc (NASDAQ:BLDP) which produces fuel cells to power different types of commercial vehicles such as trains, buses and trucks and Plug Power Inc (NASDAQ:PLUG) which produces fuel cells for forklifts and lift trucks for warehouses. These two companies have proven that hydrogen fuel cells are a viable source of energy and have exploded with Ballard Power Systems Inc +268% and Plug Power Inc +580% for the year.
One company that is lagging in the sector is Fuel Cell Inc. (NASDAQ:FCEL) which produces fuels cells for supplying power to government and corporate concerns. One reason for Fuel Cell inc.’s depressed price was a recent bearish article by a short selling research firm that claimed some of the Company’s backlog of stated contracts were cancelled. The company has refuted these claims.
Currently Fuel Cell Inc. has bolstered their balance sheet with $117 million in recent equity sales and just landed an $8 million contract with the Department of Energy. At a current price level of $2.62, this company has a ways to go but they are starting to garner the attention of some main-line research firms. FCEL could be a potentially good choice to power your portfolio.
