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For Professional Clients and, in Switzerland, for Qualified Investors only. In Israel for Sophisticated Investors only.
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© 2021. BNY Mellon Investment Management EMEA Limited. All rights reserved.
IDEAS AND KNOWLEDGE TO INSPIRE YOUR INVESTMENTS THINKING
29 April 2021

Is a hydrogen powered future in sight?

The electrolyser is an important enabling technology in the production of more environmentally friendly hydrogen. Electrolysis currently provides around 1% of hydrogen production, but this should increase with the focus on reducing the carbon footprint. This would reduce reliance on so-called grey, brown and even blue hydrogen, which all use fossil fuels. Electrolysis uses a chemical process to split water into hydrogen and oxygen by applying electricity.

 

When considering green hydrogen, the electricity created must be from renewables in order to be truly “green”. We assume that the increasing scale of electrolyser production, as well as the declining costs of renewable electricity, will ultimately result in reduced costs of production. This will eventually lead to pricing that is at or below fossil fuel parity, making it economically viable.

 

Once the infrastructure expands and the demand for hydrogen increases, we see its costs lowering to a competitive level.

 

Rob Zeuthen, portfolio manager, Mellon.

 

Doc ID: 545457

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Investment Managers are appointed by BNY Mellon Investment Management EMEA Limited (BNYMIM EMEA), BNY Mellon Fund Managers Limited (BNYMFM), BNY Mellon Fund Management (Luxembourg) S.A. (BNY MFML) or affiliated fund operating companies to undertake portfolio management activities in relation to contracts for products and services entered into by clients with BNYMIM EMEA, BNY MFML or the BNY Mellon funds.

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