While uranium and coal producers have been recent market focal points, ASX hydrogen shares are regaining interest today. Investors are once again eyeing off these ASX-listed energy companies following plans for a large-scale hydrogen equipment manufacturing facility in Queensland.
It seems the announcement has renewed optimism for what the hydrogen sector could be in the years to come. Additionally, it comes at a time when energy-generating resources are in high demand. Illustrating the depth of the current energy crisis, natural gas in Europe now costs 130% more than it did at the beginning of September.
Green development for ASX hydrogen shares
In a reaffirming sign for the Australian hydrogen industry, a subsidiary of Fortescue Metals Group Limited (ASX: FMG) yesterday announced its intention to develop a green hydrogen manufacturing industry in Queensland.
The subsidiary is none other than Fortescue Future Industries (FFI). For the uninitiated, this is the iron ore giant’s green energy offshoot. According to its website, the subsidiary is targeting 15 million tonnes of green hydrogen production by 2030.
As we covered in another article, the announcement outlines the plan to construct the world’s largest electrolyser, renewable industry, and equipment manufacturing centre at Gladstone. Ambitiously, the planned ‘Global Green Energy Manufacturing’ centre is the first in what is expected to be a series of centres.
Furthermore, the proposal has gained the backing of the Queensland government with Premier Annastacia Palaszczuk noting an expected 300 local jobs will be created.
The announcement has highlighted the large potential opportunity ahead for ASX hydrogen shares. Companies back in the spotlight today include:
- Hazer Group Ltd (ASX: HZR) up 5.03% to $1.045
- Province Resources Ltd (ASX: PRL) up 1.72% to 14.75 cents
- Pure Hydrogen Corporation Ltd (ASX: PH2) up 6.67% to 24 cents
Meanwhile, Fortescue Metals is enjoying a green day of its own on the back of the hydrogen news. At the time of writing, shares in the iron ore company are trading 3.33% higher to $14.725.
Reflecting on the sector
Unlike other recent trends, ASX-listed hydrogen shares have been quite sporadic over the past several months. For example, the Hazer Group share price peaked in February before trending downwards, gaining a second boost in April. Similarly, Province Resources surged throughout February to April but its share price has since declined and traded sideways.
However, many of these companies have substantially outperformed the S&P/ASX 200 Index (ASX: XJO) so far this year. Pure Hydrogen Corporation, for instance, is up an incredible 167% year-to-date. This is well in excess of the 9% delivered by the benchmark index.
The post Why are ASX hydrogen shares in the spotlight on Monday? appeared first on The Motley Fool Australia.
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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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