Why the renewable power investment opportunity could rival the smartphone boom. Plus, three REITs for riding out the second wave

BofA Securities analyst Haim Israel is making some tall claims about the future for hydrogen fuel, comparing the scale of the investment opportunity to smartphones before 2007 and the internet during the early 1990s.

A lot has to go right, but Mr. Israel believes hydrogen will account for 24 per cent of the world’s power usage by 2050 and the industry will generate US$2.5-trillion annually.

In a research note last week, the analyst said he sees three primary drivers behind the growth of hydrogen power: the falling costs of generating green hydrogen fuel, new technologies, and ex-U.S. government incentives promoting de-carbonization.

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The current problem with hydrogen fuel is the power needed to produce it. Currently, 99 per cent of hydrogen is made using electricity generated from fossil fuels. (Interestingly, Mr. Israel notes that French industrial gas provider Air Liquide S.A. uses fossil fuels to make hydrogen,

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