Hillcrest Energy Technologies. (CSE: HEAT)
From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future.
The U.S. presidential election has concluded with Trump confirmed to return to the White House for a second term. While Trump has previously vowed to halt offshore wind projects and threatened to repeal the Inflation Reduction Act, which introduces uncertainty for the renewable energy sector, including green hydrogen, his presidency will not stop the momentum of clean energy. The long-term investment prospects for U.S. green hydrogen stocks and ETFs remain unchanged.
Trump’s pro-oil and gas stance does not necessarily spell disaster for green hydrogen initiatives. Many petrochemical companies, including major oil firms like ExxonMobil (XOM) and Chevron (CVX), are supportive of hydrogen energy development. These companies are exploring hydrogen technologies, partly motivated by tax incentives.
Moreover, Trump’s policies are focused on promoting business and economic progress rather than opposing new energy and hydrogen development. Provided technological and commercial viability is demonstrated, these projects could still receive policy support. Although the hydrogen subsidies under the Inflation Reduction Act face uncertainty, the Department of Energy’s subsidies may continue post-election.
From an investment timing perspective, U.S. green hydrogen stocks have seen significant declines this year due to market pessimism. As of November 14, both the Global X Hydrogen ETF (HYDR) and Defiance Next Gen H2 ETF (HDRO) have fallen nearly 40%, offering long-term investors a rare opportunity to buy in at lower levels.
Currently, the U.S. hydrogen market is in the demonstration phase, primarily focusing on fuel cell vehicles and “grey” hydrogen, produced from fossil fuels like natural gas and coal. In contrast, green hydrogen, made from renewable energy, is poised to become transformative in heavy industry and transportation sectors.
One of the biggest challenges to green hydrogen development is cost. While U.S. natural gas is cheap, producing hydrogen from it is expensive and struggles to compete at a commercial scale. According to Whit Irvin Jr., CEO of Q Hydrogen, high production costs without subsidies make hydrogen projects economically challenging. Nonetheless, near-commercial innovative technologies are emerging.
