Green hydrogen could offer route to energy independence, JPM says

Green Hydrogen Systems A/S

01/03/2022 10:38

** JP Morgan says European energy security concerns amid
Moscow's invasion of Ukraine could speed up decarbonisation
efforts, cutting the region's dependence on Russian fossil fuel
imports
    ** It notes at-or-near record fossil fuel prices have closed
the cost gap for green hydrogen adoption, particularly for
industries which already utilise H2 (ammonia, refining)
    ** "We believe the renewed conflict in Ukraine and its
impact on European energy prices could move this to being a key
advantage of the bloc's initiatives," the brokerage adds
    ** JPM ups its 2030 global installed electrolyser capacity
estimate by above 20% to around 102 gigawatts (GW), saying
"green H2 offers a potential route to greater energy
independence"
    ** Despite concerns that low barriers to entry could depress
margins in the long term, the broker sees potential greater
order backlog news for electrolyser original equipment
manufacturers (OEMs)
    ** JPM raises ITM Power  ITM.L  to "overweight" from
"neutral", saying future policy announcements to cut fossil fuel
imports could be a catalyst for greater green H2 adoption in a
medium term
    ** It however keeps "underweight" on Nel  NEL.OL , given its
greater focus on alkaline technology and higher near-term
funding risk, as well as on Green Hydrogen Systems A/S
 GREENH.CO 

 (Reporting by Juliette Portala)
 ((juliette.portala@tr.com))