Hydrogen Economy: Two steps back

Well, so much for the arrival of the hydrogen economy.

Despite Barack Obama's commitment to a green energy strategy, the economic reality of 2009 will likely limit the actual conversion of a fossil fuel world to more environmentally benign energy sources. Especially with oil prices down in the dumps.

How can the U.S. expect the investment required to finance a) the re-tooling of the beleaguered auto industry and b) the distribution infrastructure to flow into green options when rescue and survival are foremost in the minds of both investors and corporations?

Obviously if Obama ignores the debasing effect of expanding the U.S. dollar money supply, and conjures from thin air the $385 billion he has said he will commit to infrastructure, such investment is thus rendered moot. Not to mention the fact that materials prices have declined sharply, making it much cheaper for the material cost.

But hydrogen will not be leading this transition. In this I was clearly wrong.The physical conundrum of the energy required to meet its cooling/compression requirements is still way in excess of its available energy density.

I never concluded a deal with HTEC and have since been focused on my Midas Letter. (http://www.MidasLetter.com) . While one eye is kept on the green technology evolution, for now, it looks to be further from reality than it was at this time last year.