Displaying items by tag: hydrogen

In March 2021, President Biden unveiled his new infrastructure plan, promising “It is not a plan that tinkers around the edges. It is a once-in-a-generation investment in America unlike anything we have seen or done since we built the interstate highway system and the space race decades ago. ”

At the heart of his plan sits a commitment to clean energy provision and carbon neutrality, with hydrogen fuel playing a key role. Among other measures, the plan proposes to fund R&D in advanced hydrogen electrolyzers; build 15 decarbonized hydrogen demonstration projects in economically distressed areas; incentivize the adoption of electric and fuel-cell vehicles (FCEV); remove tax preferences for fossil fuels and redirect them to projects that advance industrial decarbonization; and invest $100 billion in upgrading and modernizing the electric grid. It sets a goal of a carbon-neutral, American-made power sector by 2035.

Hydrogen is one of the leading hopes for Biden and the hundreds of governments, municipalities, and corporations around the world who have committed to reach carbon neutrality within the next few decades. Hydrogen is abundantly available across the planet in the form of water. It's converted into fuel through electrolysis, which separates hydrogen molecules from the water compound. The hydrogen molecules are stored in pressurized containers, then compressed into a fuel cell which allows the energy they hold to be released as electricity.

Until recently, hydrogen fuel production was powered by fossil fuels, but today's green hydrogen uses renewable energy sources, making it environmentally friendly and emissions-free. Hydrogen energy is more stable than other clean power, like solar or wind power; its energy-dense nature supports long-duration discharge cycles to release energy at times and places of peak demand; and because it's a molecule-based fuel, it's appropriate for use cases where electrification isn't an option, like industrial feedstock.

Biden keeps green hydrogen in the spotlight

This week, Biden followed through on his commitment to bring down the cost of green hydrogen fuel production. Jennifer Granholm, the Energy Secretary, announced the "Hydrogen Shot" program that aims to lower the costs of clean hydrogen by approximately 80%, from around $5/kg today to $1/kg by 2030. Granholm referred to it as an "energy earthshot" that's "an all-hands-on-deck call for innovation, collaboration and acceleration of our clean energy economy. "

She continued that the project “sets an ambitious yet achievable cost target to accelerate innovations and spur demand of clean hydrogen. Clean hydrogen is a game changer. It will help decarbonize high-polluting heavy-duty and industrial sectors, while delivering good-paying clean energy jobs and realizing a net-zero economy by 2050.”

Even before the unveiling of Hydrogen Shot, private companies and investors have been picking up on political enthusiasm for green hydrogen and taking bold steps to advance innovation and production. Plug Power, one of the leading producers of hydrogen fuel cells, recently announced plans to invest $84 million in building a fourth hydrogen refinery in the US, this one located in southern Georgia. The plant will use solar electricity to power green electrolysis, and have an initial capacity of 15 tons of hydrogen per day. The company also just revealed a new partnership with French carmakers Renault to produce hydrogen fuel-cell vans . Together with Biden's exciting news, these developments pushed Plug Power's stock price up by 29.58% in 30 days, from $24.58 to $31.85 .

UK-based ITM power announced a tender pipeline of £607 million, a rise of 131% on 2020, and work in progress totalling £35.4 million, a rise of 62% from the previous year. Neil Shah, director of research at the Edison Group, connects this positive performance with governmental decision-making, saying “The increasing global recognition of the potential for hydrogen to support green power should bring confidence to both ITM Power and their investors. The company has noted the explicit statement of electrolyzer targets from eight governments, and recent reports on global energy outlooks have recognized the necessity of rapid development in the sector.”

Another leading hydrogen stock, Bloom Energy, just entered a partnership with the Idaho National Laboratory to test the outcomes of using nuclear energy to create clean hydrogen with Bloom Energy's solid oxide, high-temperature electrolyzer, the results of which could impact the future of hydrogen fuel production.

In the public sector, the Port of Los Angeles and its partners rolled out five new hydrogen-powered FCEVs and opened two hydrogen fueling stations. The achievement is part of the $82.5 million Shore-to-Store (S2S) program, a grand vision to improve air quality and address climate change statewide. The Port project involves over a dozen public and private sector partners to develop zero-emissions heavy-duty vehicles, to maintain shipment throughput at the port without adding to pollution levels.

The global hydrogen market is keeping pace

Nor is hydrogen fuel activity limited to the US. Japan, South Korea, and the EU join the US with plans to invest more than $100 million of public funds in hydrogen fuel cell technology development . While the US and Canada are the fastest growing market segments, encouraged by incentives through emissions regulations , Asia-Pacific accounted for the largest revenue share in 2020, and the trend is expected to continue till 2028 . It's possible that a friendly rivalry could emerge between regions, which will help drive revenue for hydrogen stocks everywhere in the world.

Europe is rapidly emerging as a key player in the green hydrogen scene, with the EU's Fuel Cells and Hydrogen Joint Undertaking (FCHJU) rolling out ambitious proposals to deploy 3.7 million fuel cell passenger vehicles, 45,000 fuel cell trucks and buses, 500,000 fuel cell light commercial vehicles (LCVs), and 3,700 refueling stations by 2030. Fuel cell solutions provider Ballard Power Systems just received an order for 13 fuel cell modules for fuel cell electric buses in the city of Frankfurt, Germany. Rob Campbell, Chief Commercial Operator at Ballard, says "The orders we are announcing today are indicative of the growing European and global adoption of zero-emission FCEBs."

The Asia-Pacific region is also surging ahead with green hydrogen development. Japan's plans to be carbon-free by 2050 rely heavily on hydrogen power, and the government just announced that it will invest up to 370 billion yen ($3.4 billion) in two projects to accelerate green hydrogen R&D and adoption. One project aims to create a large-scale supply chain of hydrogen, while the other intends to build a large-scale hydrogen production plant using energy from renewable sources. Writing in the Wall Street Journal, analyst Phred Dvorak suggests that Japan's projects could drive hydrogen adoption globally, saying "If it succeeds, it could also lay the groundwork for a global supply chain that would finally let hydrogen come into its own as an energy source and further sideline oil and coal—similar to the way the country pioneered liquefied natural gas in the 1970s. "

Green hydrogen adoption is speeding up

For the moment, one of the biggest barriers to hydrogen adoption is the cost per kilogram of the fuel. However, tax breaks for clean power and penalties for fossil fuel use are helping lower the relative costs of hydrogen fuel, while the actual cost of production is also diminishing. A report from the California Energy Commission predicted that green hydrogen could fall to around $1-2/kg by 2050 , and another source estimated that hydrogen fuel production costs will have dropped by 30% by 2030 . The new Hydrogen Shot project aims to significantly speed up this trend, with the goal of lowering costs by 80% and reaching the target price of $1/kg by 2030.

The decline in fuel production costs is, as analysts had hoped, being accompanied by a rise in fuel production capacity. Hydrogen fuel production is predicted to jump one-thousand-fold globally, or by over 200GW, by 2040. It's expected that as the technology and supply chain matures, the average size of a hydrogen electrolyzer project will expand from 1-10MW to 100-500MW by 2024. Richard Howard, research director at Aurora Energy Research, states “The growth of the hydrogen electrolyser pipeline is an early indication of the rapid rollout of hydrogen infrastructure that we are likely to see in the coming years." It's growing particularly swiftly in Europe, where capacity is on track to rise from around 200MW today to 40GW by 2030.

These positive developments are encouraging optimistic predictions for the green hydrogen market. One study forecasts growth of 54.7% compound annual growth rate (CAGR) between 2021 and 2028, with the market rising from $0.17 billion in value in 2019 to $9.83 billion by 2028 . As a result, and despite hydrogen stocks in general seeing a downturn at the beginning of 2021, many analysts are recommending green hydrogen stocks for investors who want to be part of a disruptive new vertical while meeting their desires for ESG (Environmental, Social and Governance–aware) investing.

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^[1] "Biden Details $2 Trillion Plan to Rebuild Infrastructure and Reshape the Economy" March 31, 2021 https://www.nytimes.com/2021/03/31/business/economy/biden-infrastructure-plan.html

^[1] "Biden Details $2 Trillion Plan to Rebuild Infrastructure and Reshape the Economy" March 31, 2021 https://www.nytimes.com/2021/03/31/business/economy/biden-infrastructure-plan.html

^[1] "Biden administration launches program to cut cost of climate-friendly hydrogen production" June 7, 2021 https://news.yahoo.com/biden-administration-launches-program-cut-121558346.html

^[1] "Green hydrogen leads off US energy earthshots in 'all hands on deck' technology call" June 7, 2021 https://www.rechargenews.com/energy-transition/green-hydrogen-leads-off-us-energy-earthshots-in-all-hands-on-deck-technology-call/2-1-1021584

^[1] "Plug Power Is Still Undervalued as the Good News Keeps Coming" June 10, 2021 https://www.nasdaq.com/articles/plug-power-is-still-undervalued-as-the-good-news-keeps-coming-2021-06-10

^[1] "Hydrogen fuel company set to build $84M plant in Camden County" June 11, 2021 https://www.news4jax.com/news/georgia/2021/06/11/hydrogen-fuel-company-set-to-build-84m-plant-in-camden-county/

^[1] "Is PLUG Stock A Buy As It Teams With European Auto Giant?" June 11, 2021  https://finance.yahoo.com/m/3662e412-a9b6-3048-9f9d-571aee7fdb8f/is-plug-stock-a-buy-as-it.html

^[1] "Plug Power Stock Went Up By Over 29% In The Last 30 Days" June 12, 2021 https://via.news/markets/plug-power-stock-went-up-by-over-29-in-the-last-30-days/

^[1] "Electrolyser manufacturer ITM Power order backlog hits £154m" June 10, 2021 https://www.energyvoice.com/renewables-energy-transition/hydrogen/329209/itm-power-order-backlog/

^[1] "Bloom Energy, national laboratory to test hydrogen generation from nuclear power" May 18, 2021 https://www.spglobal.com/platts/en/market-insights/latest-news/electric-power/051821-bloom-energy-national-laboratory-to-test-hydrogen-generation-from-nuclear-power

^[1] "Port Of Los Angeles Demonstrates Hydrogen Fuel Cell Electric Trucks" June 10, 2021 https://www.fleetequipmentmag.com/port-los-angeles-hydrogen-fuel-cell-electric-trucks/

^[1] Hydrogen Vehicle Market Forecast, Trend Analysis & Competition Tracking - Global Review 2021 to 2031

https://www.factmr.com/report/685/hydrogen-vehicle-market

^[1] "Global Automotive Fuel Cell Markets, 2021-2028" May 28, 2021 https://finance.yahoo.com/news/global-automotive-fuel-cell-markets-082800012.html

^[1] "Hydrogen Generation Market Size, Share & Trends Analysis Report" March 2021 https://www.grandviewresearch.com/industry-analysis/hydrogen-generation-market

^[1] Hydrogen Vehicle Market Forecast, Trend Analysis & Competition Tracking - Global Review 2021 to 2031 https://www.factmr.com/report/685/hydrogen-vehicle-market

^[1] Fuel cell electric buses "Ballard Announces Follow-On Order for Fuel Cell Modules to Power 13 Solaris Buses in Frankfurt" May 27, 2021 https://www.prnewswire.com/news-releases/ballard-announces-follow-on-order-for-fuel-cell-modules-to-power-13-solaris-buses-in-frankfurt-301301337.html

^[1] "Japan Sets Aside $3.4B for Hydrogen R&D" May 18, 2021 https://www.oedigital.com/news/487734-japan-sets-aside-3-4b-for-hydrogen-r-d

^[1] "How Japan’s Big Bet on Hydrogen Could Revolutionize the Energy Market" June 13, 2021 https://www.wsj.com/articles/japans-big-bet-on-hydrogen-could-revolutionize-the-energy-market-11623607695

^[1] "Roadmap for the Deployment and Buildout of Renewable Hydrogen Production Plants in California. CEC. Publication Number: CEC-600-2020-002" Reed, Jeffrey, Emily Dailey, Brendan Shaffer, Blake Lane, Robert Flores, Amber Fong, G. Scott Samuelsen. 2020. https://cafcp.org/sites/default/files/Roadmap-for-Deployment-and-Buildout-of-RH2-UCI-CEC-June-2020.pdf

^[1] "Hydrogen in aviation: how close is it?" October 8, 2020 https://www.airbus.com/newsroom/stories/hydrogen-aviation-understanding-challenges-to-widespread-adoption.html

^[1] "Hydrogen electrolyser market booms with '1,000-fold' growth in frame by 2040: Aurora" May 11, 2021 https://www.rechargenews.com/energy-transition/hydrogen-electrolyser-market-booms-with-1-000-fold-growth-in-frame-by-2040-aurora/2-1-1009199

^[1] "Green Hydrogen Market to Garner $9.83 Billion by 2028: Allied Market Research" May 27, 2021 https://www.globenewswire.com/en/news-release/2021/05/27/2237557/0/en/Green-Hydrogen-Market-to-Garner-9-83-Billion-by-2028-Allied-Market-Research.html

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Over the past 12 months, FuelCell Energy, a global leader in "green" fuel cell technology, reached a number of milestones that testify to the ongoing growth and potential of the hydrogen fuel market. In May 2020, the company announced its production and delivery of over 10 million megawatt hours (MWH) since the first commercial installation.

Towards the end of the year, this was followed by the successful sale of an extra 39,696,320 shares of common stock, in order to raise capital for further expansion. The offering generated aggregate gross proceeds of $162.5 million for the company and its stock price is up over 600% compared to six months ago[1].

The achievement of 10 million MWH reflects the growing desire for green alternatives to fossil fuels. The increase in serious natural events caused by climate change, such as wildfires, avalanches, hurricanes, drought, and heatwaves, are driving global demand for environmentally-friendly fuels that will reduce carbon emissions. National governments and international organizations have expressed support for clean energy through both policy-making and financial investments.

A number of world leaders set carbon-zero targets through accords like the Paris Climate Agreement, and need to act quickly to meet those commitments. Although there is a number of green energy alternatives, such as solar power, wind power, biomass energy, and electrification, they aren't able to provide power on a sufficient, cost-effective, and reliable enough basis to replace fossil fuels in a large-scale manner. Additionally, certain use cases like industrial manufacturing require molecule-based fuels and can't be converted to electric power. It's estimated that carbon emissions could be cut by up to 30% by replacing these fuel sources with green hydrogen[2] .

Hydrogen fuel can meet these needs. Hydrogen is energy-dense, offering long-duration discharge cycles and the ability to meet peak demand. Hydrogen molecules are available in abundance across the planet, but they usually appear in a compound with other elements. Fuel producers like FuelCell Energy use electrolysis to release hydrogen molecules from their compound. The molecules are denser than air, so they are stored and transported in pressurized containers until they are compressed into fuel cells which can transfer the energy as fuel. When the power for electrolysis comes from renewable energy sources, like those used by FuelCell Energy, the hydrogen is "green hydrogen" and is considered to produce barely any carbon emissions.

FuelCell Energy's 10 million MWH milestone is testimony to both the efficacy of and the demand for green hydrogen. The company supplies clean energy to a number of customers, including hospitals, municipalities, utilities companies, large-scale microgrids, industrial applications, pharmacology research facilities, and more, through SureSource™ fuel cell power platforms installed across 3 continents. These clients appreciate the consistency of FuelCell Energy's green energy supply, the price, and the knowledge that their power consumption has had close to zero impact on the environment. It's estimated that FuelCell Energy's 10 million MWH prevented the release of the equivalent of 1.5 million tons of CO2 and 5,000 tons of nitrogen oxides.

The speed with which FuelCell Energy's extra stock was purchased in December 2020 is further proof of public confidence in the opportunity a fuel cell ETF may offer, and a general awareness of the value of more efficient and clean energy sources. “The unique attributes of the SureSource™ platforms enable improvements in energy efficiency while simultaneously reducing emissions and costs for our customers,” said Jason Few, CEO of FuelCell Energy. “Higher efficiency drives better economics and environmental stewardship, supporting both social responsibility goals and public policy objectives while providing a lower carbon footprint[3].

Founded in 1969 in the US, FuelCell Energy has spent 5 decades developing its SureSource™ power plants, which are currently operating across the world, including in South Korea, the US, Germany, and Switzerland. FuelCell Energy runs the world's largest fuel cell park in South Korea, which provides 59 megawatts of electricity and district heating to a number of customers, as well as the US' largest fuel cell park in Connecticut.

The company installs, operates, and maintains power platforms for leading utility companies, municipalities, industrial enterprises, and global commercial organizations that need trustworthy and resilient power, including on-site power, utility grid support, distributed hydrogen fuel cells, and micro-grid and multi-megawatt applications. Its turnkey solution makes it easy for organizations and enterprises to switch to a more environmentally-friendly energy alternative without hassle, and without risking gaps in its power supply.

The company also offers SureSource™ Recovery plants for natural gas pipeline applications, to harness "free" energy from the pressure-reduction process of natural gas and use it to generate extra power without extra emissions. Another product is the SureSource™ Capture solution, which separates and concentrates CO2 emissions from the flue gases of power plants that use biomass, coal, or natural gas. SureSource™ Capture destroys approximately 70% of the pollutants released by the plant, while using the flue gases to produce efficient power.

Recently, the company signed an $8 million contract with the US Department of Energy (DoE) to extend the lifecycle of America's aging nuclear power plants. FuelCell energy will work together with the DoE to explore whether the nuclear plants can divert excess electricity and heat into fuel cells during periods of low demand, and return it to users as electricity when needed.

As companies like FuelCell demonstrate the promise of clean energy, we believe it's a good time to invest in the disruptive and innovative potential of green hydrogen stocks. In order to reduce the risk of overexposure to a single nascent green energy stock, it may be prudent for those seeking participation to invest in a diversified hydrogen ETF, like HDRO, recently launched by Defiance ETF. HDRO is the first US-listed clean energy ETF that diversifies investment in the burgeoning clean energy sector. The ETF track the rules-based BlueStar Global Hydrogen & Next Gen Fuel Cell Index, spreading investment across a number of promising fuel cell stocks and enabling investors to support green energy and a cleaner planet, while tapping into the possibility of potential growth.

n.b. This content was composed and paid-for by Defiance ETFs and is not FINSUM editorial.

Citations:

1. FuelCell Energy, Inc. (FCEL) , Historical Data, Yahoo Finance. https://finance.yahoo.com/quote/FCEL/history?period1=1599609600&period2=1615248000&interval=1mo&filter=history&frequency=1mo&includeAdjustedClose=true
2. BNEF, California Fuel Cell Partnership, BofA Global Research
3. "FuelCell Energy Celebrates Significant 10 Million MWH Milestone; Provides Clean, Resilient, Secure Power across Multiple Applications" Press release, May 4, 2020. https://investor.fce.com/press-releases/press-release-details/2020/FuelCell-Energy-Celebrates-Significant-10-Million-MWH-Milestone-Provides-Clean-Resilient-Secure-Power-across-Multiple-Applications/default.aspx

The Funds’ investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company. Please read it carefully before investing. A hard copy of the prospectus can be requested by calling 833.333.9383.

Investing involves risk. Principal loss is possible. As an ETF, the fund may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The Fund is not actively managed and would not sell a security due to current or projected under performance unless that security is removed from the Index or is required upon a reconstitution of the Index. A portfolio concentrated in a single industry or country, may be subject to a higher degree of risk. Specifically, the Index (and as a result, the Fund) is expected to be concentrated in hydrogen and fuel cell companies. Such companies may depend largely on the availability of hydrogen gas, certain third-party key suppliers for components in their products, and a small number of customers for a significant portion of their business. The Fund is considered to be non-diversified, so it may invest more of its assets in the securities of a single issuer or a smaller number of issuers. Investments in foreign securities involve certain risks including risk of loss due to foreign currency fluctuations or to political or economic instability. This risk is magnified in emerging markets. Small and mid-cap companies are subject to greater and more unpredictable price changes than securities of large-cap companies.

The Fund is new with a limited operating history.

Fund holdings and sector allocations are subject to change at any time and should not be considered recommendations to buy or sell any security. Click here for current holdings information.

HDRO is distributed by Foreside Fund Services, LLC.

(New York)

Hydrogen and other alternative "green" fuels are the subject of a huge amount of interest, not just from environmentalists but also from policy makers, green tech companies, and investors eager to invest in hydrogen. The hydrogen fuel market is poised to take off, with Bank of America comparing it to the smartphone market pre-2007 and the internet just before the dot-com boom.

As of Q4 2019, the hydrogen fuel market was valued at around $150 billion+, but analysts predict a market potential of $11 trillion in indirect investments and $2.5 trillion in direct revenues by 2050, providing significant scope for growth from a hydrogen ETF. By that date, it's expected that hydrogen will supply 24% of all our energy needs. At the moment, fossil fuels still account for 84% of the world's energy usage.

Over 100 countries have pledged to reach net zero carbon emissions by 2050, but their current green energy options aren't enough for them to meet those goals in under 30 years. Wind, solar, and biomass energy all have their uses as part of an environmentally-friendly energy strategy, but experts don't expect that they can produce energy in sufficient quantities to replace fossil fuels. Hydrogen, however, is energy-dense, so it can meet peak demand and offer long-duration discharge cycles that other technologies currently lack.

Hydrogen is abundantly available across the earth, but it's typically found in water as a compound with oxygen. It's released using electrolysis, then stored and transported in pressurized containers before the molecules are passed into a fuel cell to transfer the energy as electricity.

At the moment, the vast majority of electrolysis is powered by fossil fuels, making what's called "gray hydrogen," but when the fuel comes from renewable sources it's "green hydrogen," and the only waste product is water. Tech advances and the falling cost of renewable energy are combining to make "green hydrogen" commercially viable and increase interest in clean energy ETFs. The price of hydrogen electrolyzers has dropped by up to 50% over the last 5 years, and is projected to fall another 40-60% by 2030, while renewable energy capacity needed for green hydrogen production could grow ten-fold by 2050.

At the same time as technology is maturing to make green hydrogen more accessible and cost-effective, demand is rising, pushing up hydrogen companies' stock. The general public is concerned about climate change, pollution, and carbon emissions, and wants a reliable and cost-effective green alternative to fossil fuels. Governments and international organizations are searching for solutions to decarbonization and are rolling out both favorable policies and significant investment in hydrogen fuel infrastructure.

Governments across Asia and the EU are investing more than $2 billion in hydrogen production each year, and the US invested $150 million annually since 2017. China has committed over $17 billion of investment in hydrogen-powered transportation until 2023. Meanwhile, hydrogen-friendly strategies like the European Commission’s European Hydrogen Strategy are offering subsidies for hydrogen-powered Fuel Cell Elective Vehicles (FCEVs) and incentives for R&D, while Germany, France, and Australia are among the countries promoting the use and export of renewable energy. Government policies that raise the cost of energy from fossil fuels make green hydrogen a more cost-effective alternative. Currently, green hydrogen costs around $3-7.5/kg, but it's expected to fall to around $1-2/kg by 2050.

We're seeing real advances in hydrogen infrastructure and nascent adoption of hydrogen fuel across a number of use cases. The UK already has 7 active hydrogen refueling stations, and the US has 43, with 19 more under construction. Hydrogen-powered forklifts are in use in Amazon and Walmart warehouses, hydrogen fuel-cell bus fleets are rolling out in China and Europe, and almost 7,000 FCEVs are on the roads in California. The use of hydrogen fuel for transportation, industrial heating purposes, industrial feedstock, shipping, aerospace, and power generation, are all being explored.

Green hydrogen holds a lot of promise for "hard to abate" high-polluting sectors like cement, steel, and aluminum manufacturing, which need molecule-based fuels and can't switch to electricity. By replacing fossil fuels with green hydrogen, plants could cut up to 30% of global carbon emissions.

A number of companies are seeing success in hydrogen fuel development. Some of the best hydrogen stocks to look out for include Plug Power (PLUG), ITM Power PLC (ITM), NEL ASA (NEL), and Powercell Sweden (PCELL).

Plug Power is working on hydrogen energy production and hydrogen-powered vehicle engines, with an impressive customer list that includes Amazon, NASA, BMW, Boeing, and Home Depot. Home Depot and Amazon use Plug Power's forklifts in some of their fulfilment centers. ITM focuses on integrated hydrogen energy solutions and has already built 7 refueling stations in the UK. ITM intends to bring another 10 online by summer 2021 and construct 100 across the UK within 5 years. NEL ASA is a global hydrogen company developing new car fueling stations, water electrolyzers, and hydrogen generators, and Powercell Sweden, like Ballard Power Systems (BLDP) and Doosan Fuel Cell Company, deliver fuel cell solutions.

Defiance ETF recently launched Defiance Next Gen H2 ETF (HDRO) , the first US hydrogen ETF. HDRO tracks the rules-based BlueStar Global Hydrogen & Next Gen Fuel Cell Index, offering diversified access to hydrogen stocks without risking overexposure to any single company. HDRO holds the above-mentioned hydro stocks, as well as more clean energy and fuel cell stocks. As a clean energy ETF, HDRO combines ethical investing with the opportunity to be part of innovative and disruptive technology that holds the potential to reshape the world's energy consumption over the next few decades.

The Funds’ investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company which can be obtained by calling 833.333.9383. Please read it carefully before investing.

n.b. This content was composed and paid-for by Defiance ETFs and is not FINSUM editorial.

•  “Fossil Fuels Still Supply 84 Percent Of World Energy — And Other Eye Openers From BP’s Annual Review,” Robert Rapier, June 20, 2020. https://www.forbes.com/sites/rrapier/2020/06/20/bp-review-new-highs-in-global-energy-consumption-and-carbon-emissions-in-2019/?sh=500e474266a1
• Climate Ambition Alliance: Net Zero 2050, Global Climate Action. https://climateaction.unfccc.int/views/cooperative-initiative-details.html?id=94
• “Thematic Investing: The Special 1 – Hydrogen primer,” Bank of America Securities, Global Research, 23 September 2020, p.5.
• “Thematic Investing: The Special 1 – Hydrogen primer,” Bank of America Securities, Global Research, 23 September 2020, p.54.
• “Emerging opportunities in the hydrogen market,” Rachel Crouch, December 9, 2020. https://www.projectfinance.law/publications/2020/december/emerging-opportunities-in-the-hydrogen-market/
• ^[“Thematic Investing: The Special 1 – Hydrogen primer,” Bank of America Securities, Global Research, 23 September 2020, p.13

Distributed by Foreside Fund Services, LLC.

Investing involves risk. Principal loss is possible. As an ETF, the fund may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. The Fund is not actively managed and would not sell a security due to current or projected under performance unless that security is removed from the Index or is required upon a reconstitution of the Index. A portfolio concentrated in a single industry or country, may be subject to a higher degree of risk. Specifically, the Index (and as a result, the Fund) is expected to be concentrated in hydrogen and fuel cell companies. Such companies may depend largely on the availability of hydrogen gas, certain third-party key suppliers for components in their products, and a small number of customers for a significant portion of their business. The Fund is considered to be non-diversified, so it may invest more of its assets in the securities of a single issuer or a smaller number of issuers. Investments in foreign securities involve certain risks including risk of loss due to foreign currency fluctuations or to political or economic instability. This risk is magnified in emerging markets. Small and mid-cap companies are subject to greater and more unpredictable price changes than securities of large-cap companies.