My laptop died last night.
I'd just finished my evening routine: paying bills, catching up on the hundreds of emails that flood my inbox, even wasting a little time checking Facebook to see what my closest friends have been up to recently.
If you’re anything like me, you always have 50 tabs open, each one a promise to return to at a later time.
Then suddenly POOF! Nothing.
A blank screen stared back at me, triggering a rush of frantic thoughts.
Did everything save? Will I have to spend hundreds of dollars to replace this piece of technology that has become an integral part of my daily life?
I silently prayed for an easy fix, and those prayers were answered.
It was the battery, which ended up being a relatively cheap fix.
That night, I ruminated over the prominent role that batteries now play.
I can’t say it’s usually something that I think about. After all, batteries are relatively boring to the average consumer. We think of them as just a small component that we slap into the back of whatever we’re using.
Think about it…
Smartphones, electric vehicles (EVs), every single one of those useful gadgets and devices that make our lives that much easier...
Yes, that goes for our computers and laptops, especially.
The truth is that they’re the driving force behind today’s technology.
And if technology has become critical to being successful in today’s world, then there’s one thing that's even more valuable than the devices themselves.
What about medical equipment and military tools like night vision and communication devices?
Longed for the ever-flashy Tesla Model S?
It runs on batteries.
Batteries are the foundation for nearly every piece of technology right now, which is why they’re so often a hot-button topic within the investing world.
And it’s pushing innovators to constantly create batteries that are longer lasting, more efficient, and far cheaper.
Tesla built its first gigafactory recently in the Nevada desert — specifically to manufacture the lithium-ion batteries that power its growing line of EVs.
So, you can probably understand why Elon Musk thinks that lithium is the only way to go as far as batteries are concerned.
Some, however, disagree with the mighty Musk...
One man, widely considered to be the “father” of rechargeable batteries, has found a way to store energy in a way that has a much longer life span than traditional batteries — all without lithium.
In fact, this market is estimated to explode in the coming years and is projected to be a $154 BILLION industry by 2022.
So, what exactly is this new technology that's threatening lithium-ion batteries?
I’m referring, of course, to hydrogen fuel cells.
A fuel cell is an electrochemical cell that converts chemical energy from a fuel into electricity through an electrochemical reaction of hydrogen fuel with oxygen or another oxidizing agent.
Think of it as a battery source that automakers hope to use for powering tomorrow’s vehicles.
The difference between a fuel cell and a battery is that fuel cells require a continuous source of fuel and oxygen to sustain the chemical reaction. Whereas, in a battery, the chemical energy comes from chemicals already present in the battery.
And hydrogen fuel cells use a much cleaner form of energy, even though they’re slightly less efficient than lithium-ion batteries.
The Honda Clarity fuel cell electric gets 366 miles on a single fill, according to Honda.
Fuel cells may be especially useful in certain applications. Any vehicle on a tightly managed circuit, such as a delivery truck, city bus, or other similar vehicle, would work quite well with hydrogen.
Meanwhile, Tesla’s new Model 3 comes with a full 300-mile charge that takes around 9.5 hours to charge.
I don’t know about you, but I’ll always pick a car that can go 366 miles and refuel within minutes over one that takes much, MUCH longer to charge.
And right now, virtually every major auto company has announced some bold plan to produce cleaner cars. And some of the biggest ones believe hydrogen could be the way to go.
The Huffington Post writes:
Thirteen car and energy industry giants are teaming up to push hydrogen as the world's next major fuel source.
Honda, Hyundai, Royal Dutch Shell, BMW Group and Toyota are among the companies that have formed the "Hydrogen Council."
Members of the council will make significant investments in hydrogen as an attempt to transition from fossil fuels to a cleaner form of energy, to the tune of a combined €1.4 billion per year.
In fact, General Motors and Honda are putting $85 million toward the production of hydrogen cells within their respective businesses.
Amazon is even on board with the hydrogen trend after investing in a company that makes hydrogen batteries for forklifts.
And it’s not only the U.S. that’s interested in hydrogen power, either...
CNBC writes: “[Japan is] investing $350 million in improving hydrogen refueling infrastructure. It is part of a larger plan to create a 'hydrogen society...'"
Hydrogen fuel cells might not get the media hype that lithium-ion batteries do right now, but it’s clear that some major players are making huge strides in the technology.
And today, I’ll share with you one fuel cell stock worth a second look by individual investors.
As we mentioned above, Amazon (you remember Amazon: the behemoth that just hit $1,000 per share?) just bought a stake in it with the rights to buy nearly a quarter of the company.
So, without further ado, let me introduce it to you...
Plug Power Inc. (NASDAQ: PLUG)
Plug Power is an alternative energy company that designs, develops, commercializes, and manufactures hydrogen fuel cell systems, and focuses on proton exchange membrane (PEM) fuel cell and fuel-processing technologies, fuel cell-battery-hybrid technologies, and also related hydrogen storage and dispensing infrastructure.
And as we just mentioned, Amazon committed in 2017 to purchasing $70 million of Plug Power fuel cell products for its massive distribution centers.
The market rewarded Plug Power with the news — as you can see in the chart above — with shares exploding more than 122% between April and November 2017!
The company has estimated to have made between $182-$185 million in gross billings in 2018, hoping to reach between $235-$244 million by this year.
You see, Amazon wants to use hydrogen cells for the forklifts in its warehouses, so its investment in Plug Power is a smart move.
But here’s the thing…
We’re talking about a potential far greater than powering Amazon’s forklifts.
The latest push by the auto industry to develop hydrogen fuel cell technology will drive a small basket of hydrogen stocks in 2020 and beyond.