CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 87.41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Scan to Download iOS&Android APP

Uniper and Shell win shares in EU’s €5.2bn hydrogen projects

By Angela Barnes

11:20, 30 September 2022

Share this article
In this article:
AIfr
Air Liquide
140.85 USD
1.7 +1.230%
RDSB - GBP
Shell PLC - GBP
23.765 USD
-0.14 -0.590%
RDSa
Shell plc
27.755 USD
-0.16 -0.580%
UN01
Uniper
3.520 USD
0.05 +1.460%
ENGI
Engie
14.455 USD
-0.09 -0.620%

Subscribe to Weekly Highlights

The major market events for the week ahead right in your inbox. Subscribe
Image of sustainable hydrogen power generation that emits only water
Uniper, Shell and Air Liquide to work on EU hydrogen projects – Photo: Getty

Shell (RDSa), Uniper (UN01) and Air Liquide (AIfr) are among the companies that will get a slice of the EU’s €5.2bn funding for hydrogen projects, as Europe continues to push ahead with options to replace Russian commodities.

Shell (RDSa) price chart

“The Commission has approved, under EU State aid rules, a second Important Project of Common European Interest (‘IPCEI') to support research and innovation, first industrial deployment and construction of relevant infrastructure in the hydrogen value chain,” the European Commission said in a statement.

What is your sentiment on RDSa?

27.755
Bullish
or
Bearish
Vote to see Traders sentiment!

Uniper (UN01) price chart

Member states will provide public funding for the “IPCEI Hy2Use” project – which is expected to unlock an additional €7bn in private investments. 

“As part of this IPCEI, 29 companies with activities in one or more member states, including small and medium-sized enterprises (‘SMEs') and start-ups, will participate in 35 projects,” the EC confirmed.

Air Liquide (AIfr) price chart

Energy stocks to benefit from EU hydrogen fund

In addition to Shell (RDSB), Uniper (UN01) and Air Liquide (AIfr), other companies listed by the EC to work on the hydrogen projects include Engie (ENGI) and Iberdrola (IBE). Both energy companies will work on infrastructure developments.

Engie (ENGI) price chart

The EC said that the aid being given to the companies involved will be limited to what is necessary and won’t unduly distort competition.

It was also noted that if large projects covered by the IPCEI turn out to be very successful, generating extra net revenues, the companies will return part of the aid received to the respective member state under a claw-back mechanism.

Iberdrola (IBE) price chart

Why invest in hydrogen?

The EU’s push to focus on hydrogen is because it is regarded as key for the green transition.

“It allows us to produce carbon-free steel, cement and chemicals and can replace large quantities of fossil fuels,” Commissioner Thierry Breton, in charge of the internal market, said.

Oil - Crude

80.34 Price
-1.310% 1D Chg, %
Long position overnight fee -0.0024%
Short position overnight fee -0.0116%
Overnight fee time 22:00 (UTC)
Spread 0.03

Silver

23.18 Price
+1.770% 1D Chg, %
Long position overnight fee -0.0182%
Short position overnight fee 0.0065%
Overnight fee time 22:00 (UTC)
Spread 0.040

Natural Gas

6.21 Price
-8.960% 1D Chg, %
Long position overnight fee 0.0408%
Short position overnight fee -0.0658%
Overnight fee time 22:00 (UTC)
Spread 0.005

Gold

1,798.06 Price
-0.280% 1D Chg, %
Long position overnight fee -0.0188%
Short position overnight fee 0.0073%
Overnight fee time 22:00 (UTC)
Spread 0.33

Moreover, President Ursula von der Leyen said it will also help Europe reduce its dependency on Russian gas.

“We need to bring this niche market to scale. That is why we are creating a Hydrogen Bank. And we will also increase our financial participation in Important Projects of Common European Interest. This will help enable breakthrough innovation and positive spill-overs for all of the EU economy and help power the economy of the future,” she said.

Carbon emissions futures (ECFZ22) price chart

Natural gas and crude oil volatility

The push for other electricity sources comes as the current global energy crisis has sent commodity prices soaring and left countries scrambling to find replacement oil and gas that they would otherwise have received from Russia.

For natural gas, the price soared by 240% by the second week of June for 2022. In the past this energy market’s popularity has been overshadowed by crude oil.

US natural gas price chart

 

A Capital.com Pulse Report showed there was a jump in natural gas trades from around 858,000 to 1.5 million between 1 April 2022 and 30 June 2022, for example.

However, with so much discussion on Europe's dependency on Russian gas, following the Kremlin’s invasion of Ukraine, it is perhaps not surprising that the market volatility has caught traders’ attention.

Related reading

Rate this article

Share this article

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Latest Commodities news

Still looking for a broker you can trust?

Join the 475.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading