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Hydrogen Stocks: Should You Invest?

Hydrogen Stocks: Should You Invest?

Hydrogen stocks

The world is slowly but surely moving away from traditional energy forms and switching to alternative forms such as hydrogen. Fuel cells are becoming increasingly popular as they offer several advantages over other forms of energy generation. If you’re looking to invest in this growing industry, you’ll want to look at hydrogen stocks. This article will discuss what you need to know about investing in hydrogen shares and list our top picks for 2022.

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Hydrogen: Energy Source of the Future?

You might have heard about hydrogen being “the energy source of the future.” And you might have thought, “that’s great! And… what’s it doing now?”

Well, it’s doing a lot. Hydrogen is a clean fuel that we can use to power everything from cars to homes and factories. It’s also an essential raw material for many other products, including pharmaceuticals, fertilizer, and plastics. It may not be as popular as the EV markets but it’s growing and as the world moves towards a hydrogen economy, there will be more opportunities for investors.

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For investors to best understand the hydrogen stock 2022 developments, it is important to know about the different types of hydrogen. There are three main types of hydrogen stocks:

Green hydrogen: This is the most environmentally friendly type of hydrogen as it’s produced from renewable sources. The process of producing green hydrogen is called electrolysis and it uses electricity to split water molecules into hydrogen and oxygen.

Blue hydrogen: This type of hydrogen is produced from natural gas. Blue hydrogen’s process is known as steam methane reforming and it involves using high temperatures and pressures to convert natural gas into hydrogen.

Gray hydrogen: This is the least environmentally friendly type of hydrogen as it’s produced from fossil fuels. It’s commonly used to make chemical fertilizer and refining oil. It is important to note that gray hydrogen is slowly being phased out as more environmentally friendly options become available.

When evaluating hydrogen stock future price potentials, green hydrogen will likely have the greatest growth potential. This is because it’s the most environmentally friendly type of hydrogen and as the world moves towards a more sustainable future, there will be an increased demand for green hydrogen.

Hydrogen is produced by splitting water into two components—hydrogen and oxygen—using electricity from renewable sources such as wind or solar. We pass an electric current through water and an electrolyte like sodium bicarbonate or potassium carbonate. This process separates the hydrogen and oxygen gasses from each other so they can collect separately.

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Many experts believe hydrogen will play a significant role in the energy transition, as it is a clean and renewable energy source. Fuel cells powered by hydrogen can generate electricity with zero emissions, making them an attractive option for those looking to reduce their carbon footprint. The reason why this could be a big deal is that, as we mentioned before, hydrogen can be used to power just about anything.

So what does this mean for investors? It means that now is the time to start looking at hydrogen stocks. The hydrogen stock price for most companies is still relatively low, but as the demand for hydrogen increases, we expect prices to rise.

The hydrogen stock future forecast is looking bright, and there are already a few companies leading the way. The hydrogen stock 2022 craze is just the start—if you’re looking to get in on the ground floor of what could be the next big thing, read on.

Hydrogen and fuel cells: Who could be among the winners?

The energy transition is underway, and hydrogen plays a significant role. This clean and renewable energy source offers many benefits over traditional fossil fuels. Another thing is certain: this industry’s potential for growth is huge.

Also, as the world moves away from fossil fuels, there will be a growing demand for hydrogen. This means that now is the perfect time to invest in hydrogen stocks. Here are our top picks for the best hydrogen stocks to buy in 2022:

  • Ballard Power Systems (BLDP)
  • Plug Power (PLUG)
  • FuelCell Energy (FCEL)
  • Bloom Energy (BE)
  • Hydrogenics Corporation (HYGS)

Do your research (keep reading to find out more about these companies) and consult with a financial advisor to ensure that your investment in hydrogen shares is suitable. And remember, investing in hydrogen stocks is just one way to take advantage of the energy transition. Many other sectors will benefit from the move away from fossil fuels, so don’t limit yourself to just this one industry.

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Now is the time to start thinking about investing in hydrogen stocks. The potential for growth in this industry is enormous, and there are many ways to take advantage of it. However, when approaching hydrogen stock 2022 investment potentials, there are a few important points that must be mentioned.

Do your research: When investing, you should never take someone’s word for it. Do your research before investing in any stock; hydrogen stocks are no different. Look into the companies you’re considering investing in and make sure you understand their business model and financial situation.

Consult with a financial advisor: If you’re unsure whether investing in hydrogen stocks is right, consult with a financial advisor. They can help you assess your risk tolerance and investment goals and advise on whether investing in this industry is a good fit.

Consider other sectors: Don’t limit yourself to just hydrogen stocks. The energy transition will benefit many different sectors, so consider other industries. Renewables, electric vehicles, and battery storage are all sectors that benefit from moving away from fossil fuels.

Do your research, consult a financial advisor, and consider other sectors to find the best way to take advantage of the energy transition. Investing in hydrogen stocks is just one way to profit from this exciting industry.

What to know about investing in hydrogen stocks?

If you’re looking to invest in the hydrogen industry, there are a few things you need to know. First, it’s essential to understand that there is no one “hydrogen market.” Instead, the hydrogen industry comprises many different sub-markets, each with its dynamics and drivers. For example, the market for hydrogen fuel cells is different from the market for hydrogen production. This is because fuel cells are used to power electric vehicles, while hydrogen production is used for a variety of applications, including industrial uses.

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Second, you must be aware of the different types of hydrogen stocks. There are three main types of hydrogen companies: producers, distributors, and end-users. Producers are companies that generate hydrogen gas, either through natural gas reformation or electrolysis. Distributors are companies that transport and sell hydrogen gas to end-users. End-users are companies that use hydrogen gas to power their fuel cells.

Finally, you need to know what you’re looking for in a hydrogen stock. There are many factors to consider, such as the company’s business model, competitive advantages, and financial stability. To help you get started, we’ve compiled a list of our top picks for hydrogen stocks in 2022.

  • Ballard Power Systems (BLDP)
  • Plug Power (PLUG)
  • FuelCell Energy (FCEL)
  • Bloom Energy (BE)
  • Hydrogenics Corporation (HYGS)

These are all companies that we believe have strong long-term prospects and are well positioned to benefit from the growth of the hydrogen industry. Here’s a brief understanding of what you need to know about investing in these individual hydrogen companies.

Ballard Power Systems is a Canadian fuel cell company that designs, manufactures, and sells proton exchange membrane (PEM) fuel cells. The company has over three decades of experience in the fuel cell industry and is a leader in PEM fuel cell technology. Over 400 MW of fuel cell products have been designed and produced by Ballard.

Plug Power is a direct competitor in the electric battery market. This company develops hydrogen fuel cell systems. The company’s batteries can replace traditional batteries in equipment and vehicles that run on electricity. Plug power is a green hydrogen company and has partnerships with major brands such as Whole Foods, Amazon, FedEx, NASA, and more. With such an impressive clientele, this company is one to watch in the hydrogen space.

FuelCell Energy is an American fuel cell company that designs, manufactures, and sells high-efficiency fuel cells for power generation. Powerplants called SureSource™ span their trademarked product and it is currently being used in three continents. With millions of megawatts of ultra-clean power produced, this company should not be ignored when considering this industry as an investment.

Bloom Energy is a company that strongly focuses on the commercial and industrial markets and has partnerships with some of the world’s largest companies. They have a diverse product line that solves many electric power problems. For example, the AlwaysON Microgrid Platform can provide power during a utility outage. This is an exciting company that has a lot of potential in the hydrogen space.

Hydrogenics Corporation focuses on water electrolysis and proton exchange membrane technology. They provide a turn-key solution for industries, governments, and utilities. The company is headquartered in Mississauga, Ontario, Canada. This Canadian company has a strong foothold in the hydrogen market and is worth considering as an investment.

Recently acquired by Cummins, this company has even more potential now. Cummins is a multinational company with connections that can bring Hydrogenics to new markets.

Investing in hydrogen stocks is a great way to tap into the potential of this clean and renewable energy source. With many different sub-markets and types of companies operating in the space, investors have plenty of opportunities to find a winning investment. These companies have proven that hydrogen-based energy is here to stay and will only become more prevalent in the years to come. When looking at the major partnerships, acquisitions, and infrastructure evolution that’s happening, it’s hard to not get excited about the future of hydrogen.

The hydrogen industry is still in its early stages of development, so considerable risk is involved. Be sure to do your due diligence before investing in any hydrogen stock. In the next section, we’ll discuss if the current hydrogen stock price for some of the companies within the industry is worth the risks.

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Should you buy hydrogen stocks?

Let’s see if hydrogen stocks are a good investment. As we mentioned earlier, there is no one “hydrogen market.” Instead, the hydrogen industry comprises many different sub-markets, each with its dynamics and drivers. This can make investing in hydrogen stocks a bit more complicated than investing in other sectors. However, it also provides investors with more opportunities to find winning investments.

Also, remember that the hydrogen industry is still in its early stages of development. This means a higher degree of risk is involved than with more established industries. That being said, we believe that hydrogen stocks could be an excellent long-term investment for investors with a high tolerance for risk. The potential rewards are significant; we think the industry is on the cusp of rapid growth.

So should you buy hydrogen stocks? Well, that depends on your investor profile. If you are willing to take on more risk for the chance of higher rewards, then hydrogen stocks could be a great addition to your portfolio. But if you are risk-averse, you might want to wait until the industry matures a bit more.

These emerging technological investments can be seen as asymmetric opportunities. This means that the potential rewards are much higher than the risks involved. This is because the market is still in its early stages and has not yet reached maturity.

Going all-in on one of these stocks could result in significant returns if everything goes according to plan. However, you should only invest what you are willing to lose as there is a chance that things might not go as planned. The incredible thing about finding asymmetric investing opportunities is that you don’t need a large weighting to see massive returns.

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If you are considering investing in hydrogen stocks, it’s also best to write an investment thesis about both the broader industry and the specific companies you are looking at. This will help to focus your investment strategy and increase your chances of success.

An investment thesis should include an analysis of the industry, the company’s competitive advantage, and your expected return on investment. The risks and negatives should also be considered. Doing this homework upfront will save you a lot of time and money in the long run. Write out the current hydrogen stock price and evaluate a conservative price target and decide whether or not you think it’s a good investment at the current price.

Hydrogen stocks to watch

The types of hydrogen stocks to watch are those that are positioned to benefit from the growth of the hydrogen industry. Some of the companies that we believe fit this description are Ballard Power Systems, Plug Power, FuelCell Energy, Bloom Energy, and Hydrogenics Corporation. These companies all have strong competitive advantages and are well-positioned to capitalize on the growth of the hydrogen industry.

The reason why you should put these stocks on your watchlist is that they have the potential to generate significant returns for investors. The hydrogen industry is expected to grow rapidly in the coming years, and these companies are well-positioned to benefit from this growth. If you’re looking for stocks with the potential to generate high returns, then we believe that these five hydrogen stocks are worth watching.

Our selection: Best hydrogen stocks to buy in 2022

As the hydrogen market is still in its early stages of development, it is difficult to identify the best hydrogen stocks to buy at this time. However, we believe that the following companies are well-positioned to benefit from the growth of the hydrogen industry and offer investors the potential for high returns:

German Hydrogen Stocks:

  • Linde plc (LIN)
  • CFC Solutions GmbH & Co. KGaA (CFCS)

Non-German Hydrogen Stocks:

  • Plug Power Inc. (PLUG)
  • Ballard Power Systems Inc. (BLDP)
  • FuelCell Energy Inc. (FCEL)

Investing in hydrogen stocks is an excellent option if you’re looking for an investment with high potential rewards. However, it’s important to remember that the industry is still in its early stages of development, so there is a higher degree of risk involved. Be sure to do your due diligence before investing in any hydrogen stock. This article should serve as a starting point for your research.

Investments such as German hydrogen stocks run the risk of foreign risk potentials such as changes to environmental regulations, international trade disputes, and so on. If you are unfamiliar with this jurisdiction, non-German hydrogen stocks might be a better option for you. By investing in a fast-growing technology in a location that you are more familiar with, you can help to mitigate some of the risks involved.

For more conservative investors, investing in hydrogen ETFs could be a good option. This will give you exposure to the hydrogen industry without picking individual stocks.

Investing in hydrogen ETFs

You have a few options for investing in the hydrogen industry as an investor. One option is to invest in hydrogen ETFs. Hydrogen ETFs are a great way to gain exposure to the hydrogen industry without picking individual stocks. This can be a good option for more conservative investors who want to reduce risk. By diversifying your portfolio, you can also help to mitigate some of the risks involved in investing in individual stocks.

Some of the most popular hydrogen ETFs include the First Trust ISE Global Hydrogen Index Fund (HYDR) and the iShares Global Clean Energy ETF (ICLN). By investing in the broader industry, you’ll be able to reduce your overall risk as an investor. However, if you’d still like to pick individual stocks, you can visit these index fund’s websites and analyze which individual companies they hold.

Alternatives to hydrogen shares

Now, let’s take a look at some alternatives to hydrogen shares. Investing in hydrogen ETFs could be a good option if you’re looking for an investment with less risk. This will give you exposure to the hydrogen industry without picking individual stocks. We mentioned some great hydrogen ETFs earlier.

Another alternative is to invest in companies that are involved in the production and distribution of hydrogen. These companies are less directly exposed to the success of the hydrogen industry, but they could still benefit from the sector’s growth. Air Products and Chemicals (APD) and Linde plc (LIN) are some of the most popular companies in this space.

Hydrogen is touted as a sustainable and clean energy source that has the potential to power the world in the future. And while there is still a lot of development needed before hydrogen can be widely used, the industry is expected to grow rapidly in the coming years. This makes investing in hydrogen stocks an attractive option for investors looking for high potential.

However, this technology might not be the winner when it comes to the broader sustainability race. Other forms of technology such as solar and wind might have a better chance of being the future of sustainable energy. EV stocks are also a popular investment option in the sustainable space. Therefore, a broader look at the possible outcomes and investing in other sustainable energy industries can help to mitigate risks.

Hydrogen and Fuel Cell Shares: Conclusion

Investing in hydrogen stocks is a great way to tap into the potential of this clean and renewable energy source. With many different sub-markets and types of companies operating in the space, investors have plenty of opportunities to find a winning investment.

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Hydrogen and fuel cell share prices are rising, and they’re poised to grow even more in the coming years. The technology is still new, but it’s already being implemented in the market. As more consumers become aware of the benefits of hydrogen and fuel cells, demand will grow, which will drive prices up further. If you want to capitalize on the hydrogen stock future outlooks, now’s the time to start investing.

We’ve seen the potential for investors who want to get in early on this trend. Hydrogen shares have been soaring since their introduction, and fuel cell stocks have also experienced huge gains over the past couple of years. If you want to make serious money from this emerging technology, now is the time!

Frequently Asked Questions

Which company makes the most hydrogen fuel cells per year?

The top three producers today are Toyota Motor Corp., Honda Motor Co. and Hyundai Motor Co.

Who owns the biggest share of hydrogen fuel cell companies?

The top five hydrogen fuel cell companies by market capitalization are all Chinese firms: BYD (BYDA), GCLF, Shanghai Electric, Sichuan Guotai Machinery, and Wanxiang Group. These companies represent just under half of the total market cap of all hydrogen fuel cell companies.

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Which company has the largest number of hydrogen stations?

The answer depends on which country you live in. In the US, the answer may surprise you — it isn’t Tesla Motors Inc (NASDAQ:TSLA). It’s Honda Motor Co Ltd (ADR) (NYSE:HMC), which leads all car companies in the United States by installing more than twice as many hydrogen refueling stations as any other automaker.

Who manufactures hydrogen fuel cells and how long have they been around?

The first commercial hydrogen fuel cell was developed by DuPont back in 1991. It was only available for military applications at this point. Hydrogen fuel cell vehicles (FCVs) were first introduced by Toyota in 1991. In 2013, GM announced it would start producing FCV cars in 2015. Since then, many car companies have entered this market including Honda, Hyundai, Mercedes Benz, Ford, BMW, Nissan, Kia, Tesla Motors, BYD, and others.

Where did the first hydrogen station open?

The first hydrogen station opened in Germany in April 2018 at the University Hospital in Tübingen. It was developed by Daimler AG together with Linde GmbH & Co KG. In addition to Mercedes-Benz cars, it will supply fuel cell vehicles from BMW Group and Volkswagen Passenger Cars.

When was the world’s first hydrogen fueled car introduced?

The first hydrogen fuel cell vehicle (FCV) was developed by Toyota Motor Corporation in 1991. It had a range of 100 miles and could reach speeds of 60 mph.

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