Our new Energy sector analyst Fernando Valle highlighted concerns with hydrogen and solar power on The Call @ Hedgeye this morning—two alternative energy sources that have been propped up as long-term solutions.
“Exxon just mentioned this week they’re canceling a ‘blue hydrogen’ project, essentially because the government is threatening to cut incentives,” Valle explains in this clip.
“The energy industry’s role in the world is to provide affordable energy. That’s ultimately their goal and you’re not doing that with solar. You need eight times as much solar capacity to replace a nuclear generator.”
“In a world where it’s very hard to find shorts, these have been some of the best shorts,” Keith McCullough says of Hydrogen (HYDR, down 23% since it was added to ETF Pro on January 2) and Plug Power (PLUG, down 91% since Industrials analyst Jay Van Sciver’s “Best Idea” Short Call in April 2021).
“We’re not shorting the climate change narrative. We’re shorting the assets that got pushed and marketed by Wall Street to people for fees. That’s what we’re doing.”
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