Top 6 Green Hydrogen Stocks to Invest in Now

Green hydrogen stocks can provide some great investment opportunities. Green hydrogen is one of the latest renewable energy technologies. And some think it could be the next great thing for battling carbon emissions.

But before we get into which stocks to pick, let’s talk about what green hydrogen is.

Green Hydrogen: What Is It?

David Fessler is the Energy, Infrastructure and Technology Expert at The Oxford Club. In an article he wrote titled “Why Green Hydrogen Is the Holy Grail of Renewable Energy,” Fessler broke down hydrogen-making processes into four categories.

Gray hydrogen occurs from via steam methane reformation. It’s a byproduct of the fossil fuel refining process. About 71% of our hydrogen today is “gray.”

Brown hydrogen comes from coal gasification. People used this method for decades. However, it creates other greenhouse gases as byproducts.

Blue hydrogen uses today’s production but adds carbon capture and storage. This method isn’t commercialized or up to scale for widespread use.

Green hydrogen results from electrolysis. People use renewable energy to separate water into its two basic elements: oxygen and hydrogen.

And that brings us to…

Why Green Hydrogen?

Fessler gives a few reasons why green hydrogen stocks could be a good renewable energy play. First, a surplus of renewable energy can create green hydrogen.

Second, you can store green energy until it’s needed later or sold. This makes it a good resource for utility operators of intermittent renewable energy sources, such as wind or solar.

And lastly, Fessler comments in his piece…

In addition to hydrogen’s uses mentioned above, green hydrogen opens up a wide range of applications too. Steelmaking and cement making are two industries that are very difficult to decarbonize. Each has a different production process. But both share one big challenge: needing large amounts of continuous, high-temperature heat. And we can’t just stop making either material. Cement and steel are essential building blocks for today’s modern construction. But each of them is responsible for about 7% of energy-related GHGs. That’s because their heat sources are fueled by natural gas. Switching to green hydrogen is a key part of decarbonizing them.

But, the cost to make green hydrogen needs to go down before production volume can go up. By 2030, however, Fessler says, costs will decrease by a third.

With the Biden administration in office, many are feeling positive about the future of renewable energy and infrastructure stocks. So, with all of that in mind, here are some of the best green hydrogen companies to invest in right now.

6 Green Hydrogen Stocks

#6 – Linde (NYSE: LIN)

Based in Ireland, Linde manufactures and sells atmospheric gases. This includes oxygen, nitrogen, hydrogen, helium and other rare and specialty gasses. Hydrogen is one of its main focuses. More than 160 hydrogen refueling stations around the world use Linde’s technology. The company started the first hydrogen refueling station for passenger trains in Germany by July.

It is the world’s largest industrial gas company by market capitalization and revenue. Its market cap is a whopping $142 billion. This company gives investors exposure to international markets, making it one of the top green hydrogen stocks on the market.

#5 – Air Products & Chemicals (NYSE: APD)

Air Products & Chemicals (APD) is a U.S. company based in Pennsylvania. However, it operates globally with more than 19,000 employees in more than 50 countries. Furthermore, Biden’s infrastructure law could prove to be beneficial to investors in the long run.

APD’s first hydrogen fueling station started in 1993, making it one of the first companies to adopt the practice. Additionally, APD has had a relationship with NASA for 50 years. Every space shuttle launched, including the Mercury and Apollo missions, uses liquid hydrogen. And this presents a unique opportunity for investors looking for a well-established green hydrogen company to invest in.

#4 – FuelCell Energy (Nasdaq: FCEL)

Another U.S. company, this green hydrogen stock is a well-known name. The Connecticut-based company designs and manufactures fuel cell power plants. FuelCell’s SureSource plant creates more hydrogen than it needs to power production. This leaves a surplus for industrial or transportation uses.

The U.S. Department of Energy chose FuelCell to receive $8 million in funding last year. This money was for the design and building of a SureSource electrolysis platform to produce hydrogen. Additionally, the company announced a big milestone: It’s delivered 12 million mega-watt hours of environmentally responsible energy. This well-established renewable energy company has certainly earned its place as one of the best green hydrogen stocks.

#3 – Ballard Power Systems (Nasdaq: BLDP)

Founded in 1979, Ballard is a Canadian company. It develops and manufactures hydrogen fuel cells for automobiles and engineering services. This green hydrogen stock is one of the leading providers of clean energy fuel cell solutions.

At the end of last year, Van Hool, a Belgian coachbuilder and manufacturer, purchased 10 fuel cell modules for its buses. Furthermore, Ballard also is in partnership with German auto manufacturer Audi. The focus is automotive fuel cells and will continue until mid-2022.

Green Hydrogen Stocks: The Bottom Line

These green hydrogen companies have something for every investor. With everything from international exposure to up-and-coming new companies. As always, make sure to base all investment decisions based on your own research and due diligence.