Insights

Why are ASX hydrogen shares in the spotlight on Monday?

Green hydrogen is getting the green light in Gladstone…
The post Why are ASX hydrogen shares in the spotlight on Monday? appeared first on The Motley Fool Australia. –

While uranium and coal producers have been recent market focal points, ASX hydrogen shares are regaining interest today. Investors are once again eyeing off these ASX-listed energy companies following plans for a large-scale hydrogen equipment manufacturing facility in Queensland.

It seems the announcement has renewed optimism for what the hydrogen sector could be in the years to come. Additionally, it comes at a time when energy-generating resources are in high demand. Illustrating the depth of the current energy crisis, natural gas in Europe now costs 130% more than it did at the beginning of September.

Green development for ASX hydrogen shares

In a reaffirming sign for the Australian hydrogen industry, a subsidiary of Fortescue Metals Group Limited (ASX: FMG) yesterday announced its intention to develop a green hydrogen manufacturing industry in Queensland.

The subsidiary is none other than Fortescue Future Industries (FFI). For the uninitiated, this is the iron ore giant’s green energy offshoot. According to its website, the subsidiary is targeting 15 million tonnes of green hydrogen production by 2030.

As we covered in another article, the announcement outlines the plan to construct the world’s largest electrolyser, renewable industry, and equipment manufacturing centre at Gladstone. Ambitiously, the planned ‘Global Green Energy Manufacturing’ centre is the first in what is expected to be a series of centres.

Furthermore, the proposal has gained the backing of the Queensland government with Premier Annastacia Palaszczuk noting an expected 300 local jobs will be created.

The announcement has highlighted the large potential opportunity ahead for ASX hydrogen shares. Companies back in the spotlight today include:

Hazer Group Ltd (ASX: HZR) up 5.03% to $1.045

Province Resources Ltd (ASX: PRL) up 1.72% to 14.75 cents

Pure Hydrogen Corporation Ltd (ASX: PH2) up 6.67% to 24 cents

Meanwhile, Fortescue Metals is enjoying a green day of its own on the back of the hydrogen news. At the time of writing, shares in the iron ore company are trading 3.33% higher to $14.725.

Reflecting on the sector

Unlike other recent trends, ASX-listed hydrogen shares have been quite sporadic over the past several months. For example, the Hazer Group share price peaked in February before trending downwards, gaining a second boost in April. Similarly, Province Resources surged throughout February to April but its share price has since declined and traded sideways.

However, many of these companies have substantially outperformed the S&P/ASX 200 Index (ASX: XJO) so far this year. Pure Hydrogen Corporation, for instance, is up an incredible 167% year-to-date. This is well in excess of the 9% delivered by the benchmark index.

The post Why are ASX hydrogen shares in the spotlight on Monday? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Fortescue Metals Group right now?

Before you consider Fortescue Metals Group, 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 Fortescue Metals Group wasn’t one of them.

The online investing service he’s run for nearly 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 August 16th 2021

More reading

Is Fortescue Future Industries listed on the ASX?

Fortescue (ASX:FMG) share price gains amid Twiggy’s planned $1bn hydrogen investment
Do these ASX dividend shares really have 20%+ yields?

2 ASX shares that could be worth researching this weekend

Here’s why the Rio Tinto (ASX:RIO), BHP and Fortescue share prices are surging today

Motley Fool contributor Mitchell Lawler 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.

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 App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!