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Hydrogen Fuel Cell
Hydrogen Fuel Cell: Hydrogen Demand to Spark Hydrogen Economy
A Special Report for Dynamic Market Alert
by S.R. Nunnally,
Executive Editor, Material Profits
Hydrogen-powered vehicles, micro fuel cells, power plants… The surge in hydrogen demand could make steady gains for you.
When I say “hydrogen” you probably think of a futuristic-looking car speeding by, making few refueling stops along the buzzword-worthy “hydrogen highway.”
Most people think the idea of a hydrogen highway is just too unrealistic. But smart investors know that hydrogen applications are being developed in three major industries that could spark a hydrogen economy much sooner than was ever thought possible: the automotive industry (of course), the electronics industry and the utilities industry. Hydrogen has the flexibility to generate power for all three — and the technology to do it now…
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Hydrogen Fuel Cells: The Weight of Giants
Major auto manufacturers have been developing fuel cell technology for quite a while. That's nothing new. But companies like Toyota are experiencing some great leaps forward.
On May 17, 2006, Congressman Paul Gillmor test-drove a hydrogen-powered Toyota Highlander around Washington, D.C. In the press release, Gillmor said:
Hydrogen cars have many benefits beyond greatly improved mileage including our ability to produce a never-ending supply of hydrogen to power our cars for centuries. But perhaps the greatest benefit of a hydrogen car is the byproduct — water.
If the day comes when we can produce hydrogen without creating any carbon monoxide during production, we may actually have a completely clean-burning fuel.
The Highlander Gillmor drove had a maximum speed of 90 mph, but got 64 miles to the gallon (combined). The press release also said that the hydrogen- powered Highlander was faster than its gasoline-powered sister. The Congressman even got to “fill ’er up” at a hydrogen fueling station!
Toyota’s not the only automaker to develop hydrogen-powered vehicles…
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Honda, GM, Volkswagen and BMW have all progressed in hydrogen-powered vehicle technology. With industry heavyweights behind the hydrogen movement, the “Hydrogen Economy” can’t be far behind.
As much as we’ve heard from the automotive industry and government mouthpieces about how hydrogenpowered cars are the future of energy independence, they’re not the only use for hydrogen fuel cells.
Before we get to our Bull’s-Eye Buys for this month, let’s discuss reasons why the nuclear industry should, and will, expand over the next 10 years.Hydrogen Fuel: The Hydrogen Economy Invades Electronics
Micro fuel cells are the latest in portable power innovations, and they have the potential to revolutionize the electronics industry.
According to Fuel Cells 2000, a nonprofit and educational organization, miniature fuel cells “will help consumers talk for up to a month on a cellular phone without recharging.”
“ Fuel cells will change the telecommuting world, powering laptops and palm pilots hours longer than batteries. Other applications for micro fuel cells include pagers, video recorders, portable power tools, and low power remote devices such as hearing aids, smoke detectors, burglar alarms, hotel locks and meter readers.”
Now, maybe you’re thinking that micro fuel cells are for tech geeks… a “here today, gone tomorrow” technology not worth a second glance.
I’m here to tell you they’re not. Major electronics companies are getting their hands dirty on this one. Companies like Samsung, Toshiba, Motorola, and Casio are all developing micro fuel cell technology for use in personal electronic devices.
Most micro fuel cells use — you guessed it — hydrogen.
With the sheer number of personal electronic devices, micro fuel cells have the most potential for sales growth. But the next hydrogen power application beats micro fuel cells — in sheer size!Hydrogen-Powered Power Plants
For large-scale power generation, you may think hydrogen’s nothing but hot air. I, for one, couldn’t conceive of a hydrogen-powered power plant. But innovative companies like Direct Fuel Cell and Fuel Cell Energy (FCEL:NASDAQ) are teaming up with the U.S. Department of Energy to develop technology for stationary power plants that will be used to produce up to 50,000 kilowatts of power.
The average American uses between 600-800 kilowatts each month. These stationary hydrogen power plants could produce enough to supply between 62 and 83 people with power for a whole month, or supply one person with between five and seven years of power.
Pretty strong stuff for “hot air,” huh?
A promise of this kind of power is attractive, and it’s no wonder big companies like General Electric (GE:NYSE) and utilities like DTE Energy (DTE:NYSE) are showing an interest in stationary hydrogen power application.
These stationary power systems are scalable, efficient, and can be fully integrated with other power sources. It’s the ultimate power system.Hydrogen Fuel: Give Them What They Want!
These three industries are hardy enough to make a foray into the futuristic Hydrogen Economy. In fact, their actions have brought the Hydrogen Economy into the very near future. A decade from now, you could see hydrogen cars on the road, talk on your cell phone for a month without recharging, or get some of your power from a hydrogen-powered utility.
But something’s missing — the fuel. Where will all that hydrogen come from? Just because it’s the most abundant element in the universe doesn’t mean it’s easy to -harvest. Actually, because there’s so much of it, hydrogen normally bonds itself with another element (like oxygen to make water).
It takes some effort to pry it free… and that’s where this month’s Bull’s-Eye Buy comes in. I’ve selected a company that specializes in industrial gases. Its products are used in a variety of industries that could boost hydrogen demand, including our three major industries: automotive, electronics and utilities.
Bull’s-Eye Buy #1 in Hydrogen Fuel: Praxair, Inc. (PX:NYSE)
Praxair (PX:NYSE) provides a number of specialty gases to the automotive industry through its manufacturing plant right in the heart of Michigan. It also manufactures a variety of gases for the electronics industry. Additionally, Praxair’s technological innovations are highly prized by the utilities industry.
In fact, Praxair supplies 25 different industries with gases, services and equipment. It’s a one-stop shop with the technological know-how to solve any air problems with its practical applications.
For Praxair, the name of the game is quality, and some of its products are 99.99% pure for certain applications. The company is a self-described “technology pioneer and global leader in the industrial gases industry.”
Praxair’s got some big partners, too…
The Terminator Likes Hydrogen Technology
Praxair joined with BP, plc. (BP:NYSE) and Governor Arnold Schwarzenegger to build California’s first retail-designed hydrogen refueling station in 2004. The station was built at the Los Angeles International Airport.
It has 10 years of experience in supporting the fuel cell industry with infrastructure and hydrogen supply.
The company was also selected by the U.S. Department of Energy to head one of its Ultra-Clean Fuel Teams, with notable members such as BP, Sasol and Statoil — three major energy companies.
When Mercedes-Benz wanted to show off its latest fuel cell vehicle at the L.A. Auto Show a few years ago, they used Praxair’s hydrogen and hydrogen cylinders.
But all that’s old news. Here’s something to really spark your interest.
Hydrogen Fuel Storage System in Texas
Praxair is constructing a hydrogen storage facility that is the first of its kind. It’s called a peak-shaving storage system, and it will help “increase the on-demand availability” of hydrogen in the Gulf Coast area.
This storage facility, located in Liberty County, Texas, will be linked to Praxair’s 35-mile hydrogen pipeline, and will provide 700 million cubic feet of hydrogen per day. The facility will come on line in 2007.
Praxair’s hydrogen is very much in demand by refineries in that area, as it helps reduce sulfur from fuels in the refining process. Demand is expected to increase, 15% — 20% by 2010 for the Gulf Coast.
As a leading hydrogen provider, and a long-term advocate for the fuel cell industry, why not go to the source and play Praxair to cover all hydrogen demand possibilities?
Hydrogen Fuel Cells: Sounds Good to Me…
Praxair has been moving steadily higher for the past five years. In fact, the average annual rise during these past five years has been 28.5%. That’s nice safe growth… so why do I think this stock can move 25% in the next four months? Let me explain.
Praxair moves in waves within waves. Looking at the chart, you see these nice cyclical waves, and on a larger scale, you see bigger waves. These bigger waves start out strong and normally end with a bit of a consolidation period.
What that means is, you get quick gains in the beginning, and then smaller gains as time goes on.
We’re coming to the end of one of Praxair’s consolidation areas, and I think we’ll see a nice pop in the stock price pretty soon.For more from S.R. Nunnally, learn how to profit from alternative energy investments, such as ethanol, coal, uranium renewable energy, please click here to read our special report from Material Profits.
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Copyright 2006, The Taipan Group, LLC and Dynamic Market Alert, 808 St. Paul St., Baltimore, MD 21201
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Information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed.