The investment opportunities in ‘green hydrogen’ might not be where you think

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Monika Skolimowska | picture alliance | Getty ImagesAs the world looks to move towards a low-carbon future, the potential of “green hydrogen” — which is produced using renewable energy — has garnered increasing interest from businesses, governments and investors alike. In the last few years, major firms including Repsol, Siemens Energy, Orsted and BP have got involved in projects connected to green hydrogen production. But while the development of these sorts of projects will be crucial, a key investment opportunity, according to one strategist, lies in the sector underpinning green hydrogen: renewables. “The largest amount of money here, in terms of the investment opportunity for green hydrogen, is really, actually, in more renewable energy,” Mark Lewis, who is chief sustainability strategist at BNP Paribas Asset Management, told CNBC on Monday.”Because clearly, when you produce green hydrogen it’s from … zero emissions power sources — that’s what’s going to be powering the electrolysers,” Lewis added. A multi-layered processGreen hydrogen refers to hydrogen produced via the electrolysis of water, with the electricity used in the process coming from renewable sources like wind and solar.Described by the International Energy Agency as a “versatile energy carrier,” hydrogen has a diverse range of applications and can be deployed in …

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