As a clean energy source, hydrogen almost couldn’t be more ideal. Not only is it a ubiquitous raw material, comprising some 90% of the universe,footnote1 but hydrogen gas can also be used as a fuel—powering cars, heating homes and enabling heavy industry—that leaves only water and heat as byproducts.footnote2
Right now, producing hydrogen gas is a fossil fuel-intensive endeavor, but when produced using sustainable energy, like solar and wind, hydrogen gas has the potential to be one of the greenest of green fuels. According to The Special 1 — Hydrogen Primer, a report from BofA Global Research, the rapidly decreasing cost of wind and solar power, improvements in the hydrogen production process and the urgent need to address climate change could make hydrogen a major factor across much of the global economy.footnote3
“We believe we are reaching the inflection point for harnessing hydrogen effectively and economically,” says Haim Israel, head of Thematic Investing Strategy at BofA Global Research and lead author of the primer, adding that it could be key in the fight against global warming.