Green hydrogen has been the talk of Australia lately and it’s no different on the ASX.
Hydrogen is made ‘green’ when the electrolysis process through which it’s created is powered using renewable energy. Thus, it’s possible to create zero-carbon hydrogen.
The renewable commodity is part of the Australian Government’s plan to reach net-zero emissions by 2050.
According to the Australian Renewable Energy Agency, green hydrogen could help Australia reduce carbon emissions in high-temperature industries such as steelmaking, as well as in some transport sectors.
The agency is also looking to find if the renewable commodity could power Australian homes.
Clean hydrogen is also being explored as part of Australia’s National Hydrogen Strategy. The strategy aims to see the nation exporting renewable hydrogen by 2030.
Finally, the government of Western Australia, the world’s largest iron ore producing region, began an investigation into a ‘green’ steel future on Monday. The governments of New South Wales and Queensland have also jumped on board the green hydrogen-powered train in recent weeks.
So, which ASX shares are involved in the seemingly up-and-coming green hydrogen sector? Let’s take a look.
ASX green hydrogen-focused shares
Fortescue Metals Group Limited (ASX: FMG)
Market watchers might be wondering how one of the world’s largest iron ore producers made this list. As it so happens, the company’s Fortescue Future Industries division earned it its spot.
Fortescue Future Industries is building a hydrogen-equipment manufacturing centre in Queensland, where it will produce electrolysers. Electrolysers create the electrolysis process.
The renewable-energy focused body is also looking to build hydrogen plants around the world and has a goal of producing 15 million tonnes of the clean commodity by 2030.
Sparc Technologies Ltd (ASX: SPN)
While Fortescue is focusing on producing electrolysers and green hydrogen, Sparc is scrapping both.
It’s working to create ‘ultra’ green hydrogen using only sunlight and a reactor.
Thus, it will bypass the need to capture energy – no matter how renewable – for the process of producing hydrogen.
Sparc announced its new ambition, which it’s pursuing in partnership with the University of Adelaide, last week.
Province Resources Ltd (ASX: PRL)
Finally, a more ‘traditional’ ASX green hydrogen stock.
Province Resources operates the HyEnergy Zero Carbon Hydrogen Project, located at Carnarvon, Western Australia.