Green hydrogen is a sustainable energy source produced from regenerative energy sources through water electrolysis. The global green hydrogen market is poised to advance from $0.3 billion in 2020 to $9.8 billion by 2028, showing a vast CAGR of 54.7% during the forecast period, Allied Market Research reports. In addition, the EU's intentions to reduce its dependence on imported fossil fuels from Russia can act as an additional tailwind for this industry.
Since the start of 2022, the green hydrogen industry has been experiencing a sharp decline, as evidenced by the 38.35% loss in the Global X Hydrogen ETF (HYDR), compared to SPDR S&P 500 Trust ETF (SPY) 16.46% decrease over the same period. On the other hand, this underperformance grants investors the opportunity to scoop up shares of the next-generation clean energy companies at a sizable discount.
