5 Hydrogen Stocks to Watch in 2024

Hydrogen is quickly becoming a hot topic in the energy world, and it’s poised to play a big role in our future. As we move into 2024, here are five hydrogen stocks that could be game-changers for investors.

Key Points

• Cleaner Energy: Hydrogen is a much cleaner alternative to fossil fuels, though it’s not easy to extract.
• Growing Industry: Companies around the globe are racing to harness hydrogen’s potential as a nearly emission-free fuel.
• Future Growth: The hydrogen market is expected to grow into a multitrillion-dollar industry in the coming years, but the challenge is reducing production costs and scaling up to compete with fossil fuels.

Hydrogen is gaining attention as a cleaner energy source, but extracting it is challenging and costly. Despite this, many companies are investing heavily in hydrogen technology, recognizing its potential to revolutionize the energy market. Here’s what you need to know if you’re considering investing in hydrogen.

Hydrogen Production: The Basics

Hydrogen can be produced in several ways, each with different environmental impacts. For example, “blue hydrogen” is created from natural gas and involves capturing and storing carbon dioxide emissions to reduce its environmental footprint. On the other hand, “green hydrogen” is produced using renewable energy, making it a completely clean option.

Hydrogen fuel cells, which work like batteries but are refueled with hydrogen, could be used to power everything from cars to power plants. Some experts even believe that hydrogen might eventually replace natural gas in pipelines, providing a clean energy source for homes and businesses.

The Challenge of Hydrogen

While hydrogen holds great promise, it’s still expensive to produce. For instance, it costs about $1.50 per kilogram to produce hydrogen from natural gas, but $5 per kilogram to produce clean, green hydrogen. The goal is to bring the cost of green hydrogen down to $1 per kilogram within the next decade, making it a more competitive energy source.

Top Hydrogen Stocks to Watch

Given hydrogen’s potential, several companies are emerging as leaders in this field. Here are five hydrogen stocks that could make a big impact in the coming years:

1. Air Products (NYSE: APD)
   Air Products is a global leader in supplying industrial gases, including hydrogen. The company is heavily investing in hydrogen projects, including a $4.5 billion blue hydrogen facility in Louisiana, set to be the world’s largest when completed in 2026.
2. BP (NYSE: BP)
   BP is transitioning from an oil and gas giant to a leader in low-carbon energy. The company aims to capture 10% of the hydrogen market in its core regions and is developing major hydrogen projects in the UK and beyond.
3. Plug Power (NASDAQ: PLUG)
   Plug Power is a pioneer in hydrogen fuel cell technology and operates a leading hydrogen refueling network. The company is building an end-to-end green hydrogen network, aiming to grow its revenue from $1 billion in 2023 to $20 billion by 2030.
4. Bloom Energy (NYSE: BE)
   Bloom Energy has developed cutting-edge technology to produce clean hydrogen efficiently. Its Bloom Electrolyzer is designed to decarbonize heavy industries, offering a significant leap forward in hydrogen production.
5. Linde (NASDAQ: LIN)
   Linde is a key player in hydrogen compression and refueling technology. The company is investing $1.8 billion in a blue ammonia plant in Texas, which will sequester over 1.7 million metric tons of carbon dioxide annually.

The Future of Hydrogen

Hydrogen energy has the potential to transform industries, reduce emissions, and create a multitrillion-dollar market. However, the industry still faces challenges in scaling up and reducing costs. For investors, the hydrogen sector offers exciting opportunities, but it’s important to watch how the market evolves to identify long-term winners.

Hydrogen might be the future of energy—clean, efficient, and ready to power the world in a sustainable way.

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