Green hydrogen has been getting more and more attention lately as a viable means of decarbonizing high-pollution industries like steel and cement, as well as at least some elements of transportation. Produced with clean renewable power like solar, wind, or hydroelectric, green hydrogen could not only displace some of the 70Mtpa of “grey hydrogen” produced today, but also become viable in a range of applications where hydrogen isn’t used currently.
France’s McPhy (OTC:MPHYF) (MCPHY.PA) wants to play a major role in that process. McPhy is focused on electrolyzers (or electrolysers), a key component in the hydrogen production process that takes water and electricity as inputs and produces hydrogen. Producing 5Mt of green hydrogen in 2030 would translate into around 25GW of installed electrolyzer capacity, a total market opportunity of over $16B, and even a single-digit share of that would represent a major opportunity for this small company.
To be clear, McPhy is an exceptionally speculative play. Green hydrogen demand may never develop into anything meaningful, and even if it does, other players like Cummins (CMI), Siemens Energy (OTCPK:SMNEY), or ITM Power (OTCPK:ITMPF), not to mention later entrants or startups could outmaneuver and outcompete McPhy. Still, for investors who can take the risks, it’s an interesting early-stage picks-and-shovels play to explore further.
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