“In recent years, interest in green hydrogen has increased rapidly worldwide,” the company says. According to the IEA, by 2030, up to 6 million fuel cells could be deployed, a large marketplace and revenue opportunity for those hydrogen companies currently listed on global stock markets. There is a wide-ranging suite of applications of fuel cells in the power generation and transportation sector, with heavy industry gaining the most traction at this early stage. Its large and comfortable balance sheet makes possible the kind of large-scale heavy infrastructure projects required for profitable operations and renewable operations. Indeed, the Asian Renewable Energy Hub is one of these investments – one that will see hydrogen stock investors engaged with BP’s exploits in this sector for much time to come.

A recently announced Arizona hydrogen project could start producing about 10 metric tons per day by 2023 and increase the company’s clout in the California market. However, the project pales in comparison to another upcoming carbon-free hydrogen project in Saudi Arabia that could produce 650 tons of gas per day to supply the global market. Some advocates contend that hydrogen might eventually replace natural gas in the pipeline system with some modifications.

  • The outfit also secured a series of hydrogen offtake contracts, most notably winning a €2.5 million equipment supply contract for a mobility project in Spain, which is currently underway.
  • Freeport-McMoRan Inc. is among the largest public mining companies in the world.
  • He argues that many of the company’s opportunities still aren’t priced into its current share price.

It’s worth noting that Plug Power is currently building an end-to-end hydrogen network to produce, store, and deliver fuel across Europe and North America. By 2025, it expects to produce up to 500 tons of green hydrogen by day in North America, and more than 100 tons per day in Europe by 2028. The company is well-positioned to become an industry leader in green hydrogen production and is seemingly on track with its goal of building the world’s first green hydrogen ecosystem.

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Hydrogen fuel cells are devices that convert hydrogen into electricity. They use a chemical reaction between hydrogen and oxygen to create water vapor and heat. This process is highly efficient and can result in up to three times more energy than traditional gasoline engines.

  • Also, to be included in this ETF, a company must generate 50% of its revenue from hydrogen and/or a fuel cell project, or be involved in the development of fuel cell or hydrogen sources, according to Defiance ETFs.
  • After successful pilots, this Mississauga, Ontario-based company that designs and manufactures hydrogen electrolyzers is scaling up its technology for the transportation and industrial sectors.
  • The most expensive stocks are not necessarily the most profitable, and Westport Fuel Systems Inc. is living proof of that.
  • Green hydrogen is produced by electrolysis with electricity from renewable energy.

The Australian government’s National Hydrogen Strategy highlights its intention to position the country as a “major player” in the global hydrogen market by 2030. To this end, Australia has partnered with a number of other nations on hydrogen technology. The Australian Renewable Energy Agency forecasts that the country’s hydrogen market could be worth up to AU$10 billion annually by 2040.

Hydrogen Stocks to Buy: Air Products and Chemicals (APD)

Several hydrogen plants under construction could begin production in 2022. Asktraders has a wealth of quantitative and qualitative tools, as well as in-depth market coverage to keep investors up to date with the hydrogen market and a wide range elliott waves indicator of related sectors. Performing due diligence is indeed an essential step to take before making any investment. The current sales-to-market capitalisation ratio of four times is the expensive side of the S&P 500 (currently 2.28 average).

Wall Street analysts project $1.13 billion in sales for 2022, or 16% sequential annual revenue growth, and forecast revenue of $1.5 billion in 2023. They expect strong revenue growth to pull BE’s normalized net income into the positive by the end of 2023. As the cost of solar and wind comes down, the cost of hydrogen production is sure to follow suit and make the fuel cell infrastructure reliant on hydrogen more competitive in price. BE designs, manufactures, Best esg stocks sells, and installs a wide array of fuel cells that are set to power the next generation of hydrogen-fed drive trains. Green is the supposed cleanest method and applies a current from renewable power generation to the electrolysis of water in order to split the hydrogen and oxygen molecules. Green hydrogen is widely seen as the most preferred from a policymaker’s perspective, and as a result, is attracting the bulk of the new investment.

Goldman Sachs, for example, initiated a buy rating, with a price target of $296. Similarly, the company will invest $4.5 billion to build, own and operate the world’s largest blue hydrogen production facility in Louisiana. Outside the United States, the company is investing in Saudi Arabia to supply 650 tons per day of carbon-free hydrogen for the transportation sector. With several other projects in the pipeline, the company has robust long-term growth visibility. Energy exploration and development company Elixir Energy’s projects encompass both natural gas and renewables, including a green hydrogen project in Mongolia. The Gobi H2 green hydrogen and solar project is a joint venture with renewable energy firm SB Energy.

Which is better: EVs or hydrogen?

In addition, their average price target stands at $67.81, implying an upside potential of over 16%. Fusion Fuel Green Public Limited Company is a green hydrogen production and technology business with a focus on finding solutions to address the global climate crisis. Through their innovative approach, they have created an integrated solar-to-hydrogen generator that is powered by their own cloud computing stocks miniaturized PEM electrolyzer, which generates green hydrogen using solar energy. The production of these goods requires a constant inflow of gases, leading to steady demand, consistent revenue and strong stock performance for Linde over the past decade. First Hydrogen has a hydrogen collaboration agreement with Cambridge University focused on the development of hydrogen technologies.

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Australia and Germany are working together on a hydrogen technology development program that will help Australia build out its capacity to export hydrogen to Germany as it seeks to reduce its reliance on fossil fuels. Through a partnership with Japan, Australia is developing new hydrogen fuel cell technology and looking to establish the world’s first clean liquefied hydrogen export pilot project. First Hydrogen designs and builds zero-emission vehicles, and in the first quarter of 2022 the company established First Hydrogen Energy, a division focused on the production and distribution of green hydrogen. That same year, the company secured locations in the UK and Canada for developing green hydrogen production projects. Through its ITM Linde Electrolysis joint venture, Linde has become one of the world’s leading suppliers of green hydrogen produced using proton exchange membrane (PEM) electrolyzer technologies. Shares of hydrogen stocks have dropped from pandemic peaks as the hype around the industry subsided.

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. It also develops its own green hydrogen farms and sells the fuel through long-term purchase agreements. In October, the company announced an agreement with Exolum, a leading European fuel logistics and storage provider, to provide a green hydrogen refueling station in Spain that will serve trucks and buses.

It has designed and shipped over 400 MW of fuel cell products to customers all over the world. Solutions provided service to a variety of industries such as heavy-duty motive (bus and tram applications), portable power, material handling as well as engineering services. FCEL stock rose to an all-time high of $7800 per share in 2000 and has since declined to about $2.8 as of June 2023.

That means that it’s time to start buying hydrogen stocks right now. Like its neighbor to the south, Canada is a world leader in hydrogen and fuel cell technologies, especially when it comes to innovation, research and development. In terms of the global hydrogen market, the country reportedly generates C$200 million in hydrogen exports a year.

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This includes the mining of raw materials as well as the manufacturing of chemicals and other man-made materials. This sector does not include companies that extract or process oil, natural gas and coal, which are grouped in the energy sector. ISI Evercore analyst James West, who has a buy rating on the stock with a $40 price target doesn’t seem worried. Instead, he noted the company is still making progress on a few of its hydrogen plants across the country. Susquehanna analyst Biju Perincheril also has a buy rating on the stock, with a target of $28 a share. Hydrogen stocks could be some of the most explosive investments of 2023.