The hydrogen economy is rapidly gaining momentum as countries and corporations around the world look to decarbonize. Hydrogen has the potential to play a pivotal role as a clean fuel source across a range of industries from transportation to energy generation. As investment pours into the hydrogen sector, stocks of companies developing innovative hydrogen technologies could present lucrative opportunities for early investors. Here are 5 hydrogen stocks to watch closely in the coming years:
5. Plug Power (PLUG)
Plug Power is a leading producer of hydrogen fuel cells and electrolyzers used in electric vehicles, energy storage, and power generation. The company has deployed over 50,000 fuel cell systems and over 165 fueling stations that have cumulatively logged over 500 million miles. Plug Power aims to build the first North American green hydrogen network capable of producing 500 tons of liquefied green hydrogen per day by 2025. This ambitious plan has attracted partners like Airbus, Amazon, and Walmart.
The stock price of Plug Power has already risen over 2000% in the last 5 years as major corporations signed deals for its hydrogen solutions. But with green hydrogen capacity expected to grow over 200 times in the next 3 decades, Plug Power has ample room to expand as it continues building the infrastructure for a hydrogen economy. The company’s innovative membrane electrode assemblies and electrolyzer technologies also give it an edge over competitors.
4. Bloom Energy (BE)
Bloom Energy is a manufacturer of solid oxide fuel cells that convert fuel into electricity through an electrochemical reaction. The company’s ‘Bloom Energy Servers’ are hydrogen fueled and are already being used by Fortune 500 companies like Apple, Google, Home Depot, and Walmart. Bloom Energy claims its fuel cells are ideal for hydrogen infrastructure because they can both produce green hydrogen through electrolysis and use green hydrogen to generate electricity with zero emissions.
Bloom Energy’s stock has risen over 180% in the last 3 years after several high-profile partnerships and its expanding geographic presence. The company is now looking to scale up rapidly to meet surging hydrogen demand. It expects to make its fuel cell technology cost competitive with conventional power generation within a few years which could be a game changer. If Bloom Energy can continue to grow its fuel cell business at its current pace in the promising hydrogen market, its stock could multiply several times over.
3. Ballard Power Systems (BLDP)
Ballard Power Systems specializes in proton exchange membrane fuel cells that use hydrogen to generate electricity. The company’s fuel cell products are used in fuel cell vehicles, forklifts, and distributed power generation. Ballard aims to reduce reliance on diesel engines and batteries with its zero-emission PEM fuel cells optimized for heavy duty applications.
Ballard Power Systems provides fuel cell powertrains to major vehicle manufacturers like Audi and Siemens. It also has a joint venture in China where the government plans to have 1 million fuel cell vehicles on the road by 2030. With clean energy policies prioritizing hydrogen taking shape from Europe to China, Ballard Power Systems has an opportunity to play a defining role in fuel cell adoption across automobile and power industries.
The company’s stock has already surged over 500% in the last 3 years. But Ballard is still in the early stages of capitalizing on the hydrogen economy. If it can continue to develop more advanced and efficient fuel cell products, its stock growth could accelerate further.
2. FuelCell Energy (FCEL)
FuelCell Energy builds modular carbonate fuel cell power plants that run on hydrogen to generate clean electricity. The company has installed fuel cell plants worldwide providing ultra-clean baseload power to utilities and industries. FuelCell Energy’s systems offer hydrogen power generation solutions for carbon reduction.
FuelCell Energy is expected to benefit from policies like the Inflation Reduction Act which provides tax credits for clean hydrogen production. It is looking to capture opportunities across carbon capture as well as hydrogen production and power generation. The company could also play a key role in building out hydrogen refueling infrastructure.
While FuelCell has been around for decades, it has struggled financially for many years. But favorable policies combined with its push into green hydrogen have resulted in remarkable stock growth of over 500% in the last 3 years. If FuelCell manages to sustain momentum through successful commercialization, its stock could soar higher.
1. Linde (LIN)
Linde is a leading industrial gas and engineering company that produces and distributes hydrogen along with other industrial gases worldwide. It operates the world’s first high purity hydrogen storage cavern and is developing additional hydrogen infrastructure across Europe and the US. Linde is also a major supplier of hydrogen fueling stations.
As demand for hydrogen surges globally, Linde is positioned to benefit through its role as a major hydrogen supplier and distributor. The company can leverage its specialized engineering capabilities and technologies related to production, purification, storage and transport of hydrogen. Linde also has experience working with a broad range of industries looking to adopt hydrogen solutions.
The stock of Linde has risen steadily alongside its consistent financial growth. But the stock still has plenty of upside potential as world governments enact supportive policies to develop hydrogen infrastructure. Linde’s leadership position in existing industrial gas markets gives it an advantage in capturing emerging opportunities in the hydrogen economy.
Conclusion
The transition to clean hydrogen represents a multi-trillion dollar economic opportunity this decade. These 5 stocks all have exposure to different aspects of the hydrogen value chain. As the hydrogen economy accelerates, companies like Plug Power, Bloom Energy, Ballard Power Systems, FuelCell Energy and Linde that are at the forefront of hydrogen technology could generate massive returns for early investors. The race is on to establish a leading position in the hydrogen future.