Green Hydrogen Stocks 2023

renewable energy sources

What sets Plug Power apart is its focus on hydrogen as a service business model. New York-based Plug Power is one of the biggest players in the hydrogen fuel cell industry. The company makes hydrogen fuel cell systems that replace conventional batteries in cars and other devices.

Green hydrogen stocks costs are set to increase by more than 50% through 2035, and then enter a decline rate of growth until 2050. 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. They offered a way to break free from fossil fuels and reduce greenhouse gas emissions.

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Let us look at three green hydrogen companies that are poised to benefit from the IRA. For those investors who don’t want to pick individual stocks — especially smaller companies that are emerging in a relatively new industry — then ETFs are worth considering. The Clean Hydrogen Production Tax Credit has created a new 10-year incentive for clean hydrogen production, with up to $3.00/kilogram. As one of the leading newsletters in North America, The Financial Star reveals undervalued companies and sectors for investors.

If 2022 was the year that green hydrogen came knocking at the door, 2023 could be the year that it kicks that door in and takes center stage. The IRA not only funds $9.5 billion in green hydrogen development, it also offers green hydrogen producers a tax credit worth up to $3 per kilogram for the first 10 years of a project’s duration. Green hydrogen, which is largely defined as utility power that’s generated from renewable energies like solar and wind, is expected to supply up to 25% of the world’s energy needs by 2050.

Current clean energy solutions are barely making a dent in replacing “dirty” energy’sbaseload power. Baseload means the minimum amount of electricity the grid needs to function. Hydrogen has long been seen as a critical component by those advocating for a carbon-neutral future.

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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.

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Headquartered in San Jose, California, it creates fuel cell power generation systems that can run on hydrogen, biogas and natural gas, and can be adopted for utilities and the transportation industry. Green hydrogen, which is produced using renewable energy sources such as wind and solar power, is becoming an increasingly popular area for investment as the world moves towards decarbonization. However, with so many options to choose from, it can be difficult to know which companies are the best bets. For this article, we carefully screened the global green hydrogen market to pick some of the largest, or most prominent players in the sector. The companies were screened for their product portfolio and overall performance. The companies have been ranked based on their overall market capitalization, as of November 22.

Aiming to provide complete hydrogen-powered solutions to commercial vehicles, Hyzon looks to be a leader in land, sea, and air mobility. Based in California, Bloom Energy is another company that didn’t begin green when it was founded in 2001 but has launched itself into the green hydrogen market. Established in 1940, Air Products represents another nontraditional green hydrogen stock. In fact, with its past focus on selling industrial gases and chemicals, which may explain its positive rate of return, you might find it hard to believe that Air Products is moving into the green hydrogen space. Founded in 2007, Next Hydrogen is poised to offer green hydrogen solutions to the transportation and industrial spaces with its electrolyzers. The energy sector has a lot to gain from hydrogen power, and so do investors.

In 2021, it unveiled an electrolyzer that relies on the same technology as its power generation technology. The company says its electrolyzer technology can use the excess heat from heavy industries, such as steel and cement manufacturing, to produce hydrogen with less electricity. That hydrogen can be used to power high-temperature furnaces used in the manufacturing processes. “When the Bloom electrolyzer is paired with intermittent renewable resources, such as wind and solar, the resulting green hydrogen provides an important storage mechanism,” the company says. The source of recent excitement appears to center on the potential for Ballard Power to be a major supplier to the transportation industry as the demand for “green” energy sources increases.

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Even if this industry is poised for growth, it doesn’t mean that every hydrogen company is going to be a winner, so do due diligence before picking up any shares. It’s a less expensive and more environmentally friendly alternative to natural gas — though it can’t replace internal combustion vehicles as it relies on a similar process. Hydrogen Engine Center plans to utilize this process with its own technologies to produce hydrogen at a large scale and at a reasonable cost. It has the exclusive rights to the patented “Hydrogen Engine Center Process,” which allows for low-cost hydrogen production through electrolysis.

Air Products is also joining with AES Corp. to build the world’s largest wind- and solar-powered clean energy facility. The $4 billion energy plant will be built in northern Texas and will leverage 1.4 gigawatts of wind and solar power to produce over 200 metric tons of green hydrogen per day. When used with fuel cells, hydrogen can run anything that uses electricity from electric vehicles to domestic appliances.

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Green hydrogen companies are set to benefit from the Inflation Reduction Act passed in 2022. 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. While these aren’t pure-play green hydrogen companies, they are major players in the gray hydrogen business and are expanding into the green hydrogen industry. With their long expertise in the hydrogen business, those holdings help add to the diversification of these ETFs. Hydrogen fuel cells are positioned for competitiveness with lithium-based batteries in the transportation market. Green hydrogen is made with renewably generated electricity used to separate water into hydrogen and oxygen using a tool called an electrolyzer.

BLDP) zero-emission proton exchange membrane delivers fuel cell power for various mobility modalities, including buses, trucks, trains, and marine vessels. It really depends on your investment goals — hence why we divided our top-rated companies into three groups to make your choice easier. You can buy shares in major companies like Toyota or Shell or invest in smaller companies developing new hydrogen technology. Plug Power Inc. was the first company to create a market for HFC technology. We have Linde plc, an international chemical company founded in Germany and based in the UK.

President Joe Biden wants to steer America to a net-zero emissions economy. Hydrogen appears to be the answer to at least part of our growing energy needs. The company’s hydrogen fueling stations are specifically designed for use with fuel cell vehicles and buses, which makes it one of the most experienced players in the hydrogen transportation market.

Best green hydrogen stocks under $5

This process is highly efficient and can result in up to three times more energy than traditional gasoline engines. You see; when it comes to cost, efficiency, safety, and public roads infrastructure, battery electricity wins out. To that extent, battery electricity will likely be the dominant clean energy source for passenger cars and last-mile delivery vans. Hydrogen has unique advantages that make it suitable for a range of applications.

  • But there are companies involved with “green hydrogen,” which is made with renewable energy that is used to separate water into hydrogen and oxygen using a tool called an electrolyzer.
  • A good chunk of the shares’ boost comes from a highly positive estimate by analyst Amit Dayal at H.C.
  • And although hydrogen can be produced from a variety of sources, most methods emit greenhouse gases.

Interestingly, green hydrogen, also called “fuel of the future” is generated through the electrolysis of water using renewable energy sources like solar and wind power. Using the TipRanks Essentials tab on the TipRanks’ Stock Comparison Tool, let’s have a look at three green hydrogen stocks that top analysts with strong track records recommend. The Canadian company also manufactures proton exchange membrane fuel cell products. FuelCell is another green energy company that produces fuel cell energy products in industries striving to comply with fossil fuel-limit mandates. Department of Commerce, where a former FuelCell executive recently landed a key energy role, and a new pact with the U.S. Navy on a clean energy project in Groton, Connecticut, should give the company a big competitive advantage moving forward.

You can skip our analysis of the hydrogen fuel cell industry and click to read 5 Best Hydrogen Fuel Cell Stocks to Buy Now. 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. Inflation Reduction Act provides monetary incentives for the production of renewable energy and related technologies.

Bloom Energy has provided these fuel cells for clients such as Coca-Cola, Walmart, and Staples, to name a few. Air Products plans to have a world-scale green hydrogen ammonia facility operational by 2025. It aims to transport the ammonia worldwide to be used in green hydrogen production for the transportation industry. Based in Norway, Nel has been manufacturing green hydrogen solutions in the form of electrolyzers and hydrogen fueling equipment. The massive expected growth in this space is primarily driven by energy and transportation.

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It is an efficient and clean source of energy, producing near-zero emissions when burned. Fuel cells are devices that convert chemical energy from hydrogen into electrical energy. They are highly efficient and have no moving parts, making them a reliable source of power. With continued research and development, green hydrogen and fuel cells could become an important part of the global energy mix. Most recently, the company and its Korean partner, SK Engineering & Construction, deployed 100 kilowatts of hydrogen-powered solid-oxide fuel cells.

If that trend continues, experts say HYDR is a good place to park clean energy money in 2023. Air Products is another clean hydrogen play that’s getting a boost from Wall Street analysts. The company, which runs over 100 hydrogen plants in the U.S. and abroad, saw Deutsche Bank recently raise its share price estimate to $340 from $292. That call follows news that Air Products posted $12.7 billion in sales in fiscal 2022.

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Green hydrogen can be worth your investment if you see its potential to play a critical role in these decarbonization efforts. Shell isn’t just talking about these investments, it’s been putting its money where its mouth is. Recently, Shell announced a new initiative to build Europe’s largest renewable hydrogen plant. The project could effectively produce 60,000 KG of renewable hydrogen per day. This is a significant step forward for Shell, and sets an important precedent for other large oil companies.


Bloom Energy announced at the end of 2021 that it was selected to power India’s largest energy conglomerate, using its green hydrogen fuel cells and electrolyzers. Investing in European companies puts investors at the forefront of green hydrogen development. “Europe is the main hub of hydrogen technology innovation,” the Raymond James analysts said. It sells the technology to customers who want to produce their own green hydrogen.

To achieve the net-zero emissions goal, the Biden administration is banking on increasing the green hydrogen supply and making it available at a fraction of the cost of natural gas. That’s bringing more attention to hydrogen companies, like those that supply the gas and those that provide systems that store or make it usable as energy. It’s amazing to see how green hydrogen is becoming more and more cost-competitive with fossil fuels and it’s exciting to think about the growth potential of this market in the coming years. The companies discussed are leaders in the field, with a solid track record of performance and an exciting potential for growth as the demand for green hydrogen continues to rise. The company provides its customers with a complete solution, including the fuel cell systems, hydrogen fuel, and maintenance services, which eliminates the need for customers to invest in their own infrastructure. This business model has helped the company to become one of the most profitable players in the hydrogen fuel cell market.

Volatility profiles on trailing-three-year calculations of the standard deviation of service investment returns. Several companies are working hard to tap into the enormous promise of this potentially emission-free fuel. The Impact Investor is a blog focused on helping retail investors find ESG, socially responsible, and impact investment opportunities through our expert insights, tips, and blog posts. In 2021, ITM opened the world’s largest electrolyzer production factory with a second underway and planned to open in 2023. While I’m sure you remember hydrogen’s atomic symbol from your high school chemistry days, you may be left wondering what year scientists discovered it was green. Well, to be clear, hydrogen comes in both gray and green, and the color makes all the investing difference.

Electrolyzer factory in Sheffield, UK. The company works with well-known customers, such as Shell, Linde, and Siemens. Are not necessarily the most profitable, and Westport Fuel Systems Inc. is living proof of that. Namely, the company is doing much better than most of its industry peers. LithiumBank Resources Signs MoU With ZS2 Technologies to Capture and… PLUG stock has delivered over 780% in capital gains over the past three years. However, the most recent twelve months haven’t been as great; shares lost almost 18% of their value.