Intermediate ETFs Could Benefit From Hydrogen Transport
EEven if the United States moves away from crude oil, mid-market stocks and exchange-traded funds linked to limited partnerships could still move away from traditional energy for transporting hydrogen.
“As you may know, the recurring theme of hydrogen for the midstream has revolved around gas pipelines and storage facilities used for transporting and storing blue or green hydrogen over the next decade.” , Mauricio Samaniego, senior research analyst, Alerian and S -Network Global Indexes, said Forbes.
“Today, hydrogen initiatives are in their infancy and are primarily focused on mixing hydrogen into existing natural gas pipelines, which has been defined, explored and / or discussed by Enbridge, TC Energy, Kinder Morgan and The Williams Company. Besides. , TRP and Enterprise Product Partners also discussed – and are evaluating – the use of existing nuclear and petrochemical plants for hydrogen production, ”added Samaniego.
Samaniego highlighted some accessible uses of hydrogen. For starters, intermediate operators rely on compression to move natural gas. An intermediary operator could incorporate locally sourced hydrogen from underused products like ethane to improve ESG measurements.
Industrial gas turbines are the primary engines for most major applications. Each of these turbines emits carbon dioxide, which may require adjustments to meet new ESG standards. Over the next 15 years, a projected 5 million horsepower compression could be replaced.
Gas-fired power plants also have ambitious targets for reducing CO2 emissions. To achieve these ambitious goals, operators could mix methane and up to 20% hydrogen to reduce CO2 emissions.
In order to meet the demand for hydrogen, intermediate operators test a mixture of hydrogen in gas pipelines. For example, Kinder Morgan mentioned on a results conference call that it has the technology to mix hydrogen with natural gas and transport it through pipelines.
To keep an eye on the master limited partnerships and the midstream energy space, investors can look to related ETF strategies, such as the ETF ALPS Alerian MLP (NYSEArca: AMLP), the ETN JPMorgan Alerian MLP Index (NYSEArca: AMJ), the ETF Alerian Energy Infrastructure (ENFR), and the ETN ETRACS Alerian Midstream Energy Index (NYSEArca: AMNA).
For more news, information, and strategies, visit Energy Infrastructure Channel.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.