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5 green hydrogen stocks worth considering in 2024

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Updated: February 27, 2024

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Here's how to invest in green hydrogen stocks and hydrogen fuel cell stocks

Green energy has become not only an important part of energy generation but also an important part of the economy and the stock market. Hydrogen plays a major role in green energy production. As a result, it has become increasingly easy for investors to earn money from green hydrogen stocks, hydrogen fuel cell stocks and other green energy stocks.

With the rise in the popularity of green energy, it has become easier to find investment opportunities, but more difficult to decide the best investment opportunity for you. In this article, we’re sharing five green hydrogen stocks and hydrogen energy stocks to invest in right now.

5 green hydrogen stocks: An overview

Hydrogen stock
Ticker
Facts
Plug Power Inc.
One of the most well-known names in hydrogen production.
Bloom Energy
A relatively new company that’s already surpassed many of its competitors.
Air Products and Chemicals Inc.
The largest company on our list, with more than 8 decades in business.
Ballard Power Systems
Provider of clean energy solutions, Ballard Power Systems was founded in 1979.
Fusion Fuel Green PLC
An up-and-coming green energy company.

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Plug Power Inc. (PLUG)

Plug Power is a fuel cell company that develops hydrogen energy solutions for businesses. The company was founded in 1997 with the goal of bringing an end-to-end green hydrogen ecosystem to its customers. During its lifetime, Plug Power has acquired a handful of other hydrogen companies. It has picked up a half dozen within the past five years alone.

Plug Power went public in October 1999. The company’s stock price has had its ups and downs over the years. After seeing an initial price jump after its IPO, the price fell dramatically and remained low for more than a decade. 

Bloom Energy (BE)

Bloom Energy is a hydrogen company that helps businesses and communities embrace green energy. The company builds and markets solid oxide energy solutions that produce energy onsite for Bloom’s customers.

Bloom Energy went public in July 2018. It experienced a drop in its stock price throughout 2019 and 2020. But after a surge in early 2021, the company has remained more consistent. 

Air Products and Chemicals Inc. (ADP)

Air Products and Chemicals is a green energy company that produces atmospheric industrial gases to customers in many industries, including food and beverage, manufacturing, electronics, and others. The company was founded in 1940, and today is one of the largest companies of its kind. Air Products is also a leader in hydrogen fueling systems.

Air Products and Chemicals went public in 1962.

Ballard Power Systems (BLPD)

Ballard Power Systems was founded in 1979 and is based in Burnaby, B.C., Canada. 

Ballard Power Systems Inc. is at the forefront of delivering innovative clean energy solutions. The company specializes in designing, developing, manufacturing, and selling proton exchange membrane (PEM) fuel cell products. These products are tailored for various markets, including power products, material handling, and applications requiring portable and backup power. 

Fusion Fuel Green PLC (HTOO)

Fusion Fuel Green PLC develops technology for the green hydrogen sector. The company creates an integrated solar-to-hydrogen solution for off-grid hydrogen production. Their mission is to provide the world with innovative green hydrogen solutions. The company is known for its production of a new electrolyzer design to allow for more affordable hydrogen production.

Fusion Fuel Green PLC was founded in 2018 and went public in 2020. Since then, the company’s stock has seen its ups and downs. 

Other ways to invest in hydrogen companies or hydrogen fuel cell companies

If you aren’t comfortable investing directly in hydrogen companies, there are still plenty of ways you can profit from the growth of this industry.

Before we dive into other ways to invest in hydrogen, let’s discuss why someone might not want to invest directly in hydrogen stocks. Ultimately, stock picking is a risky endeavor. While the hydrogen industry will almost certainly grow in the future, investing in individual stocks requires someone to attempt to pick winners and losers in the industry.

Not only are many investors not comfortable with that, but it may also not be the most profitable strategy. The good news is there are ways to invest in hydrogen and benefit from the growth of the entire industry rather than one (or a few) individual companies.

One of the best ways to invest in hydrogen without buying hydrogen stocks directly is to invest in diversified investments like mutual funds and exchange-traded funds (ETFs). Both mutual funds and ETFs are diversified funds that include many underlying investments. For example, there are hydrogen ETFs that invest entirely in hydrogen companies. Others are broader green energy ETFs, which may include hydrogen companies, along with companies in other parts of the green energy industry.

Another way to invest in hydrogen companies without buying their stocks directly is to invest in an ESG portfolio from a robo-advisor. When you invest with a robo-advisor, a computer algorithm builds your asset allocation based on your financial goals and risk tolerance. Many of the top robo-advisors now offer ESG (short for environmental, social, and governance) portfolios, which invest in companies that meet certain socially-responsible investing criteria.

Should you invest in hydrogen stocks?

Hydrogen stocks represent an excellent opportunity for investors. The renewable energy market overall reached $881.7 billion in 2020, and it’s expected to more than double by 2030, with an expected compound annual growth rate (CAGR) of 8.4% over the decade.

Hydrogen is one of the most prevalent forms of green energy, often used for transportation and electricity generation applications. Hydrogen energy plays a role in energy for cars, houses, portable power, and more.

As governments and companies aim to replace other energy sources with green energy hydrogen has been at the center of it. The Department of Energy has announced plans to reduce the cost of clean hydrogen by 80% over a decade as a part of its goal to reach net-zero carbon emissions by 2050.

So why does this make hydrogen an attractive investment opportunity? As hydrogen becomes more prevalent in energy production, the industry will see rapid growth. And a decrease in the cost of hydrogen production will only benefit investors.

Bottom line: Green hydrogen stocks and hydrogen fuel cell stocks

If you’re considering investing in green hydrogen stocks, it can feel overwhelming to wade through all of your options and choose the best company. This list of the top five hydrogen stocks should give you a starting point on your investing journey.

The hydrogen industry — like the rest of the green energy industry — has seen massive growth in recent years. Investors can expect this growth to continue as renewable energy sources like hydrogen become more important in energy production.

And if you aren’t comfortable buying individual hydrogen stocks, there are still plenty of ways for you to profit from the growth of the industry, including hydrogen and green energy ETFs and mutual funds, as well as robo-advisor ESG portfolios.

Green hydrogen stocks FAQs

  • What is green hydrogen, and why is it considered a promising investment?

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    Green hydrogen is produced through the electrolysis of water using electricity generated from renewable energy sources, resulting in zero carbon emissions. It's considered promising due to its potential to decarbonize industries and transport sectors that are hard to electrify, such as heavy manufacturing and shipping

  • How do green hydrogen companies generate revenue, and what are their main business models?

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    These companies generate revenue through the sale of green hydrogen, development and sale of electrolyzers and fuel cells, and providing clean energy solutions to industrial, commercial, and transportation sectors. Business models vary from direct sales to as-a-service models, where infrastructure and fuel are provided as part of a service package.

  • What are the technological challenges facing green hydrogen production and how are companies addressing these?

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    Challenges include high production costs, energy efficiency of electrolysis, and storage and transportation of hydrogen. Companies are investing in research and development to improve electrolyzer efficiency, reduce costs, and develop safe, efficient hydrogen storage and transport solutions.

  • Can you explain the global market trends for green hydrogen and its demand projections?

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    The global market for green hydrogen is expected to grow significantly, driven by the need to reduce carbon emissions and the increasing competitiveness of renewable energy sources. Demand is projected to increase in sectors such as transportation, industry, and power generation, supported by government policies and investments in infrastructure.

  • What role do government policies and international agreements play in the growth of the green hydrogen sector?

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    Government policies, including subsidies, incentives for clean energy, and carbon pricing, along with international agreements on climate change, play a crucial role in supporting the development and adoption of green hydrogen. These policies help to create a favorable market environment and reduce investment risks.

  • What are the risks and challenges of investing in green hydrogen stocks?

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    Risks include technological uncertainties, market competition, regulatory changes, and the high capital costs of establishing green hydrogen infrastructure. The sector's nascent stage also means there could be volatility in stock prices as technologies and markets develop.

About our author

Erin Gobler
Erin Gobler, Freelance Contributor

Erin Gobler is a freelance personal finance based in Madison, Wisconsin. After seven years working in state politics, she left to pursue writing full-time. Now she writes about financial topics including mortgages, investing, and more for major publications like Fox Business and NextAdvisor. In addition to finance writing, Erin also provides financial coaching services where she works with individuals to help them reach their money goals.

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