Insights

The Hazer share price gained 40% last year but its tumbling in 2022. What’s going wrong?

Could this be weighing on the ASX hydrogen stock?
The post The Hazer share price gained 40% last year but its tumbling in 2022. What’s going wrong? appeared first on The Motley Fool Australia. –

The new year is proving to be a tough slog for the Hazer Group Ltd (ASX: HZR) share price.

The technology company that’s creating low-emissions hydrogen and graphite production processes saw its stock surge 41.98% in 2021. It ended last year trading at $1.15.

Sadly, 2022 hasn’t been so kind to Hazer’s shares. They’ve tumbled 20.96% year to date.

At the time of writing, the Hazer share price is trading at 90.5 cents.  

So, what’s been dragging on the hydrogen-focused ASX share this year? Let’s take a look.

What’s going wrong for the Hazer share price?

The Hazer share price has been struggling amid a barrage of news and reports that large investors are hesitant to invest in hydrogen.

Defects in parts for the company’s commercial demonstration project and sliding revenues have weighed on the stock in 2022. Meanwhile, it was boosted by the announcement of a new Canadian hydrogen production facility.

However, some of the market’s big players are wary of hydrogen despite its apparent popularity.

Australian National University energy economist, Paul Burke, believes that Australia’s potential to become a major green energy exporter is vast, reports the Financial Times (FT). But more funds are needed to realise the sector’s potential.

Additionally, Burkes notes that the federal government “could be doing more” to support the nation’s green energy potential.

The government has invested in hydrogen projects – including ‘blue’ hydrogen projects, which create carbon emissions.

In fact, the federal government promised hundreds of millions for hydrogen production in its latest budget.

But that probably won’t be enough.

Hydrogen is one of the newest forms of low-emissions energy and it’s reportedly lacking capital from super funds and investment houses.

While initiatives like an emissions trading scheme or a carbon tax could do more to force investment in low-emissions energy sources, Burke told the FT, a lack of capital could be dragging on sentiment for Australia’s hydrogen sector.

And that could be weighing on the Hazer share price in 2022. Though, the company’s stock isn’t alone in the red.

The share prices of hydrogen-focused companies, Pure Hydrogen Corporation (ASX: PH2), Province Resources Ltd (ASX: PRL), and Sparc Technologies Ltd (ASX: SPN) have respectively slumped 23%, 35% and 51% year to date.

The post The Hazer share price gained 40% last year but its tumbling in 2022. What’s going wrong? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Hazer right now?

Before you consider Hazer, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Hazer wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

Here are the 5 worst-performing ASX hydrogen shares of the March quarter

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!