Green hydrogen stocks: Best Green Hydrogen Stocks Today ChatGPT Stocks To Buy
It’s one of the world’s largest hydrogen buyers and operates a leading hydrogen refueling network in North America with over 180 fueling stations. China revealed a five-year plan to make hydrogen one of the country’s six industries of the future20. The UAE’s investment in low-carbon energy production is expected to prod other oil producers in the Middle East into a rush of green energy adoption. “The UAE and the Middle East more widely could have a similar eureka moment to the Inflation Reduction Act in the U.S.,” noted Kavita Jadhav, Wood Mackenzie’s Research Director, Corporate Research21.
Some of the limiting factors the green hydrogen industry is faced with include hefty infrastructure costs for green hydrogen production and an underdeveloped market. After getting a general idea of the major players from industry analysis reports, we screened for stocks of companies that are operating in the green hydrogen and fuel cell industries. We narrowed down our list to stocks that were among consensus picks of Wall Street analysts and had promising upside potential based on analysts’ average price targets. Below, the Investing News Network profiles the largest hydrogen stocks by market cap on the US, Canadian and Australian stock exchanges. Data was gathered on March 15, 2023, using TradingView’s stock screener. However, choosing the best hydrogen stocks is no easy task, which is why many investors prefer a hydrogen or fuel cell ETF like HDRO from Defiance.
For investors trickling into the alternative energy space, SHEL makes for a solid case for the best hydrogen stocks to buy. Aside from the coronavirus-impacted years, Shell has revenue predictability. On the bottom line, Shell’s net margin stands at nearly 12%, beating out almost 64% of the competition. The most abundant element on Earth, hydrogen is a colorless gas that can be produced in liquid form and burned to generate electricity, or combined with oxygen atoms in fuel cells. In this way, hydrogen–which produces no carbon emissions– can replace fossil fuels in household heating, transportation and industrial manufacturing processes such as steel manufacturing.
There are several hydrogen projects in the pipeline that will significantly aid in the growth of Canada’s green hydrogen industry. The Government of Canada recently invested C$9.7 million into hydrogen technology development in Alberta. Like its neighbor to the south, Canada is also a world leader in hydrogen and fuel cell technologies, especially when it comes to research and development, and innovation. In terms of the global hydrogen market, the country reportedly generates C$200 million in hydrogen exports in a year. Looking at the medium- to long-term, the use of hydrogen as a fuel source is expected to grow on further investments and strong government incentives.
Plug Power (PLUG)
We have ranked these stocks in ascending order of their upside potential, and have mentioned the hedge fund sentiment and top shareholders along with each of our picks. Hydrogen stocks are benefiting greatly from momentum in the cleantech sector as the world moves closer to a green energy future. Green hydrogen companies are set to benefit from the Inflation Reduction Act passed in 2022.
As a hydrogen stock ETF, HDRO has holdings in some of the companies involved in the latest breakthroughs and ongoing development of hydrogen energy. HDRO seeks to track the BlueStar Hydrogen & NextGen Fuel Cell Index. Furthermore, their average price target hit $26.67, implying an upside potential of 53.45%.
It has several major hydrogen projects underway that it expects to complete in the coming years. Its $7 billion carbon-free hydrogen joint venture in Saudi Arabia is the biggest. The project would use renewable energy to produce 650 tons per day when completed in 2025. The project and others under development position Air Products to remain a leading global hydrogen energy company.
In many ways, the case for the best hydrogen stocks to buy practically sells itself. According to the International Energy Agency , “…clean hydrogen is currently enjoying unprecedented political and business momentum, with the number of policies and projects around the world expanding rapidly.” That was back in June 2019. Today, the circumstances favor the alternative energy source even more. The report further pointed out that, segment wise, in 2022 the mobility segment accounted for the major market share of the green hydrogen industry and represented 58% of its value. The mobility segment is expected to grow at a CAGR of 63.4% and account for $4.55 billion of the green hydrogen market by 2027. The power generation segment accounted for $88.5 million of the market’s value in 2022, and is expected to grow at a CAGR of 63% from 2022 to 2027, reaching a value of $1.01 billion by the end of the forecasted period.
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The federal government is also heavily invested in the sector both in terms of funding and the implementation of clean energy policies. 2022 saw the US adopt the Inflation Reduction Act , acclaimed as “the single largest investment in climate and energy in American history13. Under IRA, green hydrogen is now eligible for up to $3 per kg of tax credits, with some experts predicting that this alone will halve the cost of green hydrogen and make it a competitive energy source14.
While the rules to fit the criteria for availing of tax credits are being written, companies are making huge investments in the green hydrogen sector to benefit from them. Bloom Energy believes the Bloom Electrolyzer is a major leap forward for hydrogen. It hopes the technology will enable heavy industries such as steel, chemicals, cement, and glass manufacturing to decarbonize. Bloom Energy can pair its Bloom Electrolyzer with solar energy andwind energyto generate green hydrogen, which it can store and eventually turn back into electricity for future use.
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It has more than 100 hydrogen plants with the capacity to produce 7 million kilograms of the fuel each day. Although clean hydrogen holds great promise as a potential emissions-free fuel source, it’s costly to produce. It costs about $1.50 per kilogram to produce hydrogen from natural gas and $5 per kilogram to produce clean hydrogen. The U.S. Department of Energy wants to get the cost of clean hydrogen down to $1.00 per kilogram over the next decade to make it a more competitive fuel source. Financially, Linde provides investors seeking the best hydrogen stocks to buy plenty of positive attributes.
Also, the average NextEra Energy price target of $96.88 implies 28.1% upside potential from current levels. Hydrogen fuel cells work much like batteries by generating electricity from an electrochemical reaction. Instead of being recharged like a traditional battery, hydrogen fuel cells are refueled with more hydrogen. We can use hydrogen fuel cells to motorize vehicles and as a stationary power source.
As part of its plan to develop a network of hydrogen energy hubs, Pure Hydrogen and its strategic partner Singapore-based clean energy company CAC-H2 are planning to construct a hydrogen plant at Moreton Bay, Queensland, in 2023. The plant will use technology that can convert woody biomass into hydrogen. The Australian Renewable Energy Agency forecasts that the country’s hydrogen market could be worth up to AU$10 billion annually by 2040. DynaCERT manufactures and distributes carbon emission reduction technology for internal combustion engines.
The company’s patented HydraGEN technology for diesel engines creates hydrogen and oxygen on-demand through an electrolysis system that then supplies those gasses through the air intake. The technology is compatible with a variety of diesel engines including heavy vehicles, mining equipment, marine vessels and locomotives. Plug Power is building an end-to-end green hydrogen network to produce, store, and deliver the fuel across North America and Europe. It expects to produce 500 tons of green hydrogen per day in North America by 2025. Meanwhile, it hopes to produce more than 100 tons per day in Europe by 2028.
Bloom Energy’s mission is to make clean, reliable, and affordable energy. The company has developed the Bloom Energy Server, an electric power generation platform. It also created the Bloom Electrolyzer, using the same solid oxide technology as its Bloom Energy Serve, which can produce clean hydrogen 15% to 45% more efficiently than other products on the market.