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    There’s a buzz about green hydrogen. But pink, produced using nuclear, may have a huge role to play too

    While there’s a buzz about hydrogen and its use as a tool in securing a low-carbon future, the vast majority of its production is still based on fossil fuels.
    Today, an array of sources and systems of hydrogen production are being put forward as alternatives.
    From blue to grey and green to pink, a host of colors are being used to classify these different methods of production.

    Both pink and blue have been used to differentiate between different methods of hydrogen production.
    Eve Livesey | Moment | Getty Images

    From Tesla’s Elon Musk to European Commission President Ursula von der Leyen, the past few years have seen many high-profile names talk about the role hydrogen may — or may not — play in the planet’s shift to a more sustainable future.
    Musk has expressed skepticism about hydrogen’s usefulness, but many think it could help to slash emissions in a number of sectors, including transportation and heavy industry.   

    While there’s a major buzz about hydrogen and its importance as a tool in securing a low-carbon future — a topic that’s generated a lot of debate in recent months — the vast majority of its production is still based on fossil fuels.
    Indeed, according to a Sept. 2022 tracking report from the International Energy Agency, low-emission hydrogen production in 2021 accounted for less than 1% of global hydrogen production.
    If it’s to have any role in the planned energy transition, then hydrogen generation needs to change in a pretty big way.   

    Read more about energy from CNBC Pro

    “The first thing to say is that hydrogen doesn’t really exist naturally, so it has to be produced,” said Rachael Rothman, co-director of the Grantham Centre for Sustainable Futures at the University of Sheffield.
    “It has a lot of potential to help us decarbonize going forwards, but we need to find low-carbon ways of producing it in the first place,” she said, adding that different methods of production had been “denoted different colors.”

    “About 95% of our hydrogen today comes from steam methane reforming and has a large associated carbon footprint, and that’s what’s called ‘grey’ hydrogen,” Rothman told CNBC.
    Grey hydrogen is, according to energy firm National Grid, “created from natural gas, or methane.” It says that the greenhouse gases associated with the process are not captured, hence the carbon footprint that Rothman refers to.
    The dominance of such a method is clearly at odds with net-zero goals. As a result, an array of sources, systems and colors of hydrogen are now being put forward as alternatives.
    These include green hydrogen, which refers to hydrogen produced using renewables and electrolysis, with an electric current splitting water into oxygen and hydrogen.
    Blue hydrogen, on the other hand, indicates the use of natural gas — a fossil fuel — and carbon capture utilization and storage. There has been a charged debate around the role blue hydrogen could play in the decarbonization of society.

    Pink potential

    Alongside blue and green, another color attracting attention is pink. Like green hydrogen, its process incorporates electrolysis, but there’s a key difference: pink uses nuclear.
    “If you split … water, you get hydrogen and oxygen,” Rothman said. “But splitting water takes energy, so what pink hydrogen is about is splitting water using energy that has come from nuclear.”
    This means that “the whole system is low carbon, because … there’s no carbon in water … but also the energy source is also very low carbon because it’s nuclear.”
    Alongside electrolysis, Rothman noted that nuclear could also be used with something called a thermochemical cycle.
    This, she explained, harnessed very high temperatures to split water into oxygen and hydrogen. 

    Pink hydrogen already has some potentially significant backers. These include EDF Energy, which has floated the idea of producing hydrogen at Sizewell C, a 3.2-gigawatt nuclear power station planned for the U.K.
    “At Sizewell C, we are exploring how we can produce and use hydrogen in several ways,” the firm’s website says. “Firstly, it could help lower emissions during construction of the power station.”
    “Secondly, once Sizewell C is operational, we hope to use some of the heat it generates (alongside electricity) to make hydrogen more efficiently,” it adds.
    EDF Energy, which is part of the multinational EDF Group, said in a statement sent to CNBC: “Hydrogen produced from nuclear power can play a substantial role in the energy transition.”
    The company also acknowledged there were challenges facing the sector and its development.
    “Hydrogen is currently a relatively expensive fuel and so the key challenge for low carbon electrolytic hydrogen, whether produced from renewable or nuclear energy, is to bring down the costs of production,” it said.
    This needed “supportive policies which encourage investment in early hydrogen production projects and encourage users to switch from fossil fuels to low carbon hydrogen.”
    “Growing the market for low carbon hydrogen will deliver the economies of scale and “learning by doing” which will help to reduce the costs of production.”
    While there is excitement about the role nuclear could play in hydrogen production and the wider energy transition — the IEA, for example, says nuclear power has “significant potential to contribute to power sector decarbonisation” — it goes without saying that it’s not favored by all.
    Critics include Greenpeace. “Nuclear power is touted as a solution to our energy problems, but in reality it’s complex and hugely expensive to build,” the environmental organization says. “It also creates huge amounts of hazardous waste.”
    A multi-colored future?
    During her interview with CNBC, the University of Sheffield’s Rothman spoke about the bigger picture and the role different types of hydrogen might play. Could we ever see a time when the level of blue and grey hydrogen drops to zero?
    “It depends how long a timeframe you’re looking at,” she said, adding that “in an ideal world, they will eventually drop very low.”
    “Ultimately, we ideally get rid of all of our grey hydrogen, because grey hydrogen has a large carbon footprint and we need to get rid of it,” Rothman said.
    “As we improve carbon capture and storage, there may be a space for blue hydrogen and that’s yet to be evaluated, depending on the … developments there.”
    “The pink and green we know there has to be a space for because that’s where you really get the low carbon [hydrogen], and we know it should be, it’s possible to get there.”
    Fiona Rayment, chief scientist at the UK National Nuclear Laboratory — which, like EDF Energy, is a member of trade association Hydrogen UK — pressed home the importance of having a range of options available in the years ahead.
    “The challenge of net zero cannot be underestimated; we will need to embrace all sources of low carbon hydrogen generation to replace our reliance on fossil fuels,” she told CNBC.

    While there has been a lot of talk about using colors to differentiate the various methods of hydrogen production, there is also a lively discussion about whether such a classification system should even exist at all.
    “What we want is low carbon hydrogen,” Rothman said. “And I know there is a lot of confusion about the various colors, and I’ve heard some people say … ‘why do we even have the colors, why do we not just have hydrogen and low carbon hydrogen?'”
    “And ultimately, it’s the low carbon bit that’s important, and both pink and green would do that.” More

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    Hong Kong will give away half a million plane tickets. Here’s who can get them first

    Hong Kong’s new global promotional campaign will “kickstart” the city’s reopening to international travelers, the Hong Kong Tourism Board told CNBC’s “Squawk Box Asia” on Friday. 
    The “Hello Hong Kong” campaign, which was launched on Thursday, includes 500,000 free air tickets over the next six months starting in March.

    Hong Kong’s new global promotional campaign will “kickstart” the city’s reopening to international travelers, the Hong Kong Tourism Board told CNBC’s “Squawk Box Asia” on Friday. 
    As part of the “Hello Hong Kong” campaign, which was launched on Thursday, 500,000 air tickets will be given away over the next six months, starting in March.

    The tickets will be given out through three Hong Kong’s carriers — Cathay Pacific, HK Express and Hong Kong Airlines. 

    The free tickets are part of the HK$2 billion ($255 milion) relief package that the government offered to airlines in 2020, during the height of the pandemic.
    The Hong Kong Tourism Board is also investing a minimum of HK$100 million in the promotion of the campaign’s initial phase, it said at the launch ceremony.
    But Hong Kong still faces a “dilemma” — its infrastructure has some catching up to do to accommodate the increase in visitors, said Dane Cheng, the tourism board’s executive director.
    “I think this dilemma, we have actually been seeing from other markets and destinations when they started to reopen in the last year or so. It’s difficult to catch up … particularly for the airlines, the airports and even hotels,” he told CNBC. 

    “[But] you want to kickstart and … tell the world in a clear message that Hong Kong and then mainland — we have finally reopened.”

    How the tickets are allocated

    The ticket giveaway will be phased: It will start with Southeast Asian markets, followed by mainland China and North Asia, and lastly, other parts of the world. 
    Some 80,000 tickets have also been reserved for Hong Kong residents which authorities aim to give out in the summer.
    The number of tickets for each region was based on “traffic shares” and visitor numbers from before the pandemic, said Cheng.
    Fred Lam, the CEO of Hong Kong’s airport authority, also expects the free tickets to have multiplying effects on the number of visitors.

    “We hope those who received the tickets will bring 2-3 more friends and family with them [to Hong Kong],” according to CNBC’s translations of Lam’s comments at the campaign launch ceremony.
    “Even though we are only giving out 500,000 air tickets, we believe it will bring in more than 1.5 million incoming tourists,” Lam added. That’s about 10% of the total number of visitors expected during the campaign period.
    As for how visitors can get their hands on these free tickets, it will depend on “local market regulations and customs,” he said.
    “[That] could include large-scale lucky draws, giving it out through a first-come-first serve basis, offering buy-on-get-one free tickets, or through game participations,” Lam said.

    ‘Very clearly reopened’ 

    On Friday, China said cross-border travel with Hong Kong and Macao would fully resume from Feb. 6, scrapping mandatory pre-departure tests and lifting arrival quotas, according to a Reuters report.
    “I think it’s very clear that the Hong Kong government and also our mainland central government has been very prudent and they [made] it very clear that everything wants to be resumed in an orderly and progressive manner,” said Cheng. 
    He added that before the pandemic, Hong Kong had “over 25 million overnight visitors” each year, and it will take the city time to “get back” those numbers.

    Return of MICE events in Hong Kong 

    Cheng said the past two to three years were “difficult” for Hong Kong’s MICE (meetings, incentives, conferences & exhibitions) industry, which brought in more than 1.6 million overseas visitors in 2019, before the pandemic. 
    “The last year or so, other countries and cities and destinations have started opening up and of course we have some wonderful events that have been in Hong Kong for years,” said Cheng. 
    “Anchor events [were] moving out and they say sorry, ‘We’re going to other places in Southeast Asia, Middle East,’ or some just basically postpone or defer.”
    However, he said the city is now “confident” and “looking forward to receiving visitors” again.
    That can be seen through its “Hello Hong Kong” campaign, which has a 2023 lineup of more than 250 events and festivals — including the Hong Kong Marathon, the Clockenflap music festival and Hong Kong Rugby Sevens. 
    There are also more than 100 international MICE events planned for the year, said the city’s tourism board.  More

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    Jim Cramer says he likes these 3 junior growth stocks for younger investors

    Monday – Friday, 6:00 – 7:00 PM ET

    CNBC’s Jim Cramer gave young investors a list of stocks he believes should be on their shopping lists.
    Cramer explained that junior growth stocks are smaller, faster-growing companies that could become huge in the future.

    CNBC’s Jim Cramer on Wednesday gave young investors a list of stocks he believes should be on their shopping lists.
    “If you’re a younger investor, you need to take some risk in your portfolio — that’s how you have a chance to generate gigantic returns. I recommend betting on long-term stories that can eventually give you big wins as long as you’re patient,” he said.

    Cramer explained that junior growth stocks are smaller, faster-growing companies that could become huge in the future. “Four or five years ago, Tesla was just a wee bit junior growth stock. Well, there’s nothing junior anymore about the stock.”
    He added that these stocks are particularly attractive investments for investors still in their 20s, since they have time to correct potential mistakes and to invest in stocks that could take a while to blow up.
    Here are the three junior growth stocks Cramer recommends:

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    While Etsy’s stock valuation got a bit “excessive” during the height of the Covid pandemic, its underlying business remains solid, according to Cramer. 

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    He said that the continued strong demand for travel will help lift Airbnb’s earnings.

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    “I think Dutch Bros. is a fantastic long-term holding as long as you can get it now, less than $40,” he said.

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    Cramer’s lightning round: Stick with Netflix

    Monday – Friday, 6:00 – 7:00 PM ET

    It’s that time again! “Mad Money” host Jim Cramer rings the lightning round bell, which means he’s giving his answers to callers’ stock questions at rapid speed.

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    GameStop Corp: “I like great American stories. I don’t like that whole group.”

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    Netflix Inc: “You got the pain, you get the gain. Stick with it.”

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    DraftKings Inc: “Stock could come around, but it’s got to be 50 states before we get there.”

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    Medtronic PLC: “Medtronic right now is not being run well. … I want you to stay away from that.”

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    Jim Cramer says Meta Platforms’ latest quarter is why he stuck with the stock

    Monday – Friday, 6:00 – 7:00 PM ET

    CNBC’s Jim Cramer on Thursday used Facebook parent Meta Platforms as a case study of why it sometimes pays off to hold downtrodden stocks.
    Meta shares soared over 23% on Thursday the day after the company reported a fourth-quarter revenue beat and announced a $40 billion stock buyback.

    CNBC’s Jim Cramer on Thursday used Facebook parent company Meta Platforms as a case study of why it sometimes pays off to hold downtrodden stocks.
    “When companies change their stripes, or when they’re incredibly well managed, or disciplined, or efficient, or when they invent amazing products and reinvent themselves on the fly, you should stick with them,” Cramer said.

    related investing news

    Meta shares soared over 23% on Thursday the day after the company reported a fourth-quarter revenue beat and announced a $40 billion stock buyback.
    CEO Mark Zuckerberg also called 2023 a “year of efficiency” and committed to cutting costs, with management lowering its expense outlook for the year. 
    The tech giant’s prioritization of efficiency comes after investors worried for months about Meta’s pricey investment into the metaverse, sending its stock tumbling. Shares closed at about $189 a share on Thursday, more than double its 52-week low of roughly $88 in November.
    Cramer, whose Charitable Trust owns shares of Meta, also reminded investors that they should buy and sell stocks in stages rather than making hasty, all-or-nothing trading decisions — and that waiting for the bottom is often rewarding.
    “When the company’s well run, the pain often represents a great buying opportunity,” he said.

    Disclaimer: Cramer’s Charitable Trust owns shares of Meta Platforms.

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    Ford posts full-year net loss, ugly fourth quarter as ‘execution issues’ plague operations

    Ford Motor reported an ugly fourth quarter and a full-year net loss.
    The automaker cited “execution issues” that plagued operations. It fell short of expected sales by 100,000 units.
    The company is looking to cut additional costs this year and is not ruling out additional layoffs.

    Ford CEO Jim Farley takes off his mask at the Ford Built for America event at Fords Dearborn Truck Plant on September 17, 2020 in Dearborn, Michigan.
    Nic Antaya | Getty Images

    DETROIT – Ford Motor reported an ugly fourth quarter, missing Wall Street’s earnings expectations and falling short of its own full-year guidance by $1.1 billion, as the company reported “execution issues” that plagued operations.
    Ford’s fourth-quarter net income was $1.3 billion, $11 billion lower than the same period a year earlier. For the full year, Ford lost $2 billion, nearly $20 billion off its 2021 profit.

    “We should have done much better last year,” CEO Jim Farley said in an earnings release. “We left about $2 billion in profits on the table that were within our control, and we’re going to correct that with improved execution and performance.”
    Shares of Ford were off by more than 6% during afterhours trading. The stock closed Thursday at $14.32 per share, up 3.8% on the session.
    Here’s how Ford performed in the fourth quarter, compared with analysts’ estimates as compiled by Refinitiv:

    Adjusted earnings per share: 51 cents vs. 62 cents estimated
    Automotive revenue: $41.8 billion vs. $40.37 billion estimated

    The company’s overall revenue increased 16% to $158.1 billion for 2022, including a 17% uptick in the fourth quarter to $44 billion.
    In October, Ford said it expected full-year adjusted earnings before interest and taxes of between $11.5 billion and $12.5 billion. On Thursday it reported 2022 earnings of $10.4 billion, nearly flat year over year.

    “‘I’m frustrated’ is an understatement, because the year could have been so much more for us at Ford,” Farley told investors during an earnings call.

    Missed opportunities

    Ford CFO John Lawler said Thursday that the company’s disappointing earnings were largely due to execution and supply chain management issues. The company fell short of expected sales by 100,000 units, equating to about $1 billion in missed earnings, he said.
    The automaker’s full-year results were further weighed down by a $7.4 billion loss on its 9.5% stake in electric vehicle maker Rivian Automotive and a $2.8 billion loss associated with disbanding its Argo AI autonomous vehicle unit.
    Lawler said the automaker is looking to cut additional costs this year. He did not rule out additional layoffs, specifically in Europe. He said the other $1 billion in missed opportunities last year were related to costs.
    “Our cost structure is not competitive,” he said during a media call. “Our quality is not where it needs to be. And we will take the actions and be more aggressive about making sure that we’re making progress on both of those key areas for us in 2023.”
    “It’s a significant amount we plan on taking out this year,” Lawler said regarding cost-cutting, adding more information will come throughout the year.
    Ford also will be providing more clarity on its traditional business operations, electric vehicles and Ford Pro fleet business units — the automaker said it will begin reporting each business unit separately this year.

    A 5-day stock chart comparing Ford and GM stocks.

    Lawler said Thursday that Ford’s EV business is not currently profitable. The company earlier this week cut costs of its top-selling electric Mustang Mach-E crossover in response to Tesla EV price cuts. Farley said higher EV margins will be unlocked with its next-generation vehicles, which are expected to begin production in 2025 at a new plant under construction in Tennessee.
    Executives said Ford hoped to offset some of the near-term profit shrink with cost improvements thanks to the additional production as well as a reduction in some commodity costs.
    There was pressure on Ford to deliver a strong fourth quarter and relatively solid guidance. Crosstown rival General Motors on Tuesday significantly outperformed Wall Street’s expectations. That automaker also forecast stronger-than-expected 2023 results, including adjusted earnings before interest and taxes of $10.5 billion to $12.5 billion and adjusted earnings per share of between $6 and $7.
    For 2023, Ford said it expects to earn between $9 billion and $11 billion in adjusted earnings before interest and taxes, presuming seasonally adjusted annual rates of about 15 million vehicles in the U.S. and about 13 million in Europe.
    Ford anticipates generating about $6 billion in adjusted free cash flow. That assumes “no distributions” from its financial arm Ford Credit, the company said.
    “We are executing a double transformation. While we’re making progress, it’s hard work,” Farley told investors. “As with any transformation of this magnitude, certain parts are moving faster than I expected and other parts are taking longer.”

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    Starbucks misses expectations as China Covid surge hurts international sales

    Starbucks reported earnings and revenue after the bell that fell short of Wall Street’s expectations.
    The coffee chain was expected to post quarterly earnings per share of 77 cents and revenue of $8.78 billion.
    A surge in Covid cases in China heavily weighed on Starbucks’ sales in the country.

    A Starbucks store is seen inside the Tom Bradley terminal at LAX airport in Los Angeles, California.
    Lucy Nicholson | Reuters

    Starbucks on Thursday reported quarterly earnings and revenue that fell short of analysts’ expectations as weak international demand weighed on its results.
    In China, the company’s second-largest market, transactions at cafes open at least 13 months plunged 28%. During the quarter, the Chinese government relaxed its zero Covid policy, which led to new outbreaks of the virus. Outgoing CEO Howard Schultz said that more than 1,800 of its 6,090 Chinese locations were closed at the peak of the latest Covid wave.

    related investing news

    4 hours ago

    Despite weak performance in China, CFO Rachel Ruggeri reiterated the company’s fiscal 2023 outlook. However, Starbucks now expects negative same-store sales growth in China through the fiscal second quarter, followed by a reversal of the trend in the second half of the fiscal year.
    Shares of the company fell more than 1% in extended trading.
    Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

    Earnings per share: 75 cents adjusted vs. 77 cents expected
    Revenue: $8.71 billion vs. $8.78 billion expected

    The coffee giant reported fiscal first-quarter net income of $855.2 million, or 74 cents per share, up from $815.9 million, or 69 cents per share, a year earlier.
    Excluding restructuring and impairment costs and other items, Starbucks earned 75 cents per share.

    Net sales rose 8% to $8.71 billion. Globally, its same-store sales rose 5%, driven by a 7% increase in average transaction spend.
    In the U.S., Starbucks saw same-store sales growth of 10%, thanks to customers spending more and a 1% bump in traffic. Customers bought a record $3.3 billion in gift cards over the holiday season.
    Schultz also said that while many retailers reported falling traffic and weak holiday sales, those with Starbucks locations inside their stores said the coffee chain drew traffic and sales.
    Its U.S. rewards program reached 30.4 million active members, up 15% from the year-ago period and 6% from the prior quarter. The coffee chain recently changed its loyalty program, making it more expensive to redeem points for a hand-crafted drink but cheaper for beverages that are easier to make.
    Outside its home market, Starbucks’ same-store sales shrank 13%, dragged down by China’s dismal performance.
    But China’s sales are already improving. Ruggeri said the country’s same-store sales plunged 42% in December but just 15% in January.
    The company opened 459 net new locations in the quarter.
    Looking to 2023, the company is projecting revenue growth of 10% to 12% and adjusted earnings per share growth on the low end of 15% to 20% for fiscal 2023.
    Schultz also teased an announcement coming later in February. He said he discovered “an enduring transformative new category” when he visited Italy last summer.
    “The word I would use to describe it without giving too much away is alchemy,” he told analysts on what’s expected to be his final conference call as chief executive.
    Laxman Narasimhan is slated to take over as CEO on April 1.
    Read the full Starbucks earnings report.

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    Kohl’s names interim CEO Tom Kingsbury to the post permanently

    Kohl’s named Tom Kingsbury as its permanent CEO.
    Kingsbury served as interim CEO since December following former chief executive Michelle Gass’s departure.
    The retailer also reached an agreement with activist investor Macellum, which had been pushing for changes to the company’s board.

    The Kohl’s logo is displayed on the exterior of a Kohl’s store on January 24, 2022 in San Rafael, California.
    Justin Sullivan | Getty Images

    Kohl’s on Thursday named interim CEO Tom Kingsbury to the post on a permanent basis.
    He took over as interim CEO in December after former chief executive Michelle Gass decided to leave for Levi Strauss. Kingsbury’s appointment had been expected.

    related investing news

    The company also said activist investor Macellum Advisors agreed to back off its pressure campaign.
    “The Board appreciates our constructive dialogue with Macellum during the last few months and their engagement as we conducted the CEO search process. We look forward to their continued support and partnership,” Michael Bender, a member of Kohl’s board, said in a release Thursday.
    In October, Macellum had been pushing for board seats and also urged the company to oust the board’s chairman, Peter Boneparth.
    Kingsbury, a retail industry veteran, was the nominee of Macellum and other activist investors who had been angling for a leadership restructure. Kingsbury had previously served as CEO of Burlington Stores from 2008 to 2019.
    Boneparth on Thursday praised Kingsbury. “Tom’s exceptional track record growing retail businesses and his deep knowledge of Kohl’s makes him the right choice for Kohl’s next CEO,” he said in a release.

    Demands for a leadership shakeup came after the company backed out of a deal to sell to Franchise Group as it struggled to navigate economic headwinds and maintained low guidance.
    Kohl’s has been struggling to boost sales as budget-conscious consumers rein in spending amid inflation. The company has made a variety of attempts to revamp its brand, including with store redesigns, new partnerships and an expansion of its e-commerce offerings.
    Shares of Kohl’s were up about 1% in after-hours trading on Thursday.
    Read the full release from Kohl’s.

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