Why you should pull the plug on this hydrogen fuel-cell stock

The maker of hydrogen fuel cell-powered electric vehicles is absurdly pricey. Matthew Partridge picks the best way to play it.

Hydrogen fuelling station
Hydrogen is an overrated technology
(Image credit: © Getty Images/iStockphoto)

One of the biggest investment themes at present is renewable energy. With governments around the world, including America’s, committed to lowering carbon emissions drastically, they are spending billions of dollars creating incentives to use “clean energy”. Meanwhile, investors from pension funds to banks are also coming under pressure to invest “ethically” by avoiding shares in fossil-fuel companies. However, just because a type of energy is “green”, it doesn’t necessarily mean that it is efficient or economical, or that firms involved in producing it are always a good investment.

Consider hydrogen power, for example. For the last decade there has been great interest in vehicles powered by hydrogen fuel cells. These combine hydrogen stored in a tank with oxygen from the air to produce electricity. However, the results have been disappointing.

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Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri