Smart growth investors will always bet on the future today, and when it comes to energy, a market worth trillions of dollars, clean energy is the future. It is no news that most governments are setting up policies to transition into clean energy, especially in western countries like the United States under President Biden.
There are many sources of clean energy that have been identified to be available in commercial quantities and one of the most promising sources is HYDROGEN.
We all know that about 71% of the earth’s surface is covered by water, and water consists of two moles of HYDROGEN and a mole of Oxygen among other impurities in its natural form. In essence, there’s a LOT of hydrogen on earth.
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BUT what makes HYDROGEN CLEAN?
According to the United States Department of Energy, “Hydrogen is a clean fuel that, when consumed in a fuel cell, produces only water, electricity, and heat. Hydrogen and fuel cells can play an important role in our national energy strategy, with the potential for use in a broad range of applications, across virtually all sectors – transportation, commercial, industrial, residential, and portable”.
There you have it: where fossil fuels produce carbon, hydrogen fuel produces water. Carbon emission is a big problem to the earth whereas water isn’t.
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The technology around fossil fuels is relatively cheap and has advanced immensely over centuries of use and therein lays its advantage over clean energy sources like hydrogen. And if clean energy is to take over, they have to match combustion-based energy in capacity and price.
It is one thing to have clean fuels like hydrogen and another to use them to generate energy that can power today and future machines. And this is the part where fuel cells come into play.
Fuel cells are capable of generating electricity using clean fuels like hydrogen, just like diesel generators use diesel to generate electricity. The advancement of fuel cell technologies is vital to the adoption of hydrogen as fuel.
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According to a report by MARKETSANDMARKETS, “the global hydrogen generation market is projected to reach USD 201 billion by 2025 from an estimated USD 130 billion in 2020, at a CAGR of 9.2%”. While “the global fuel cells market size is projected to reach $0.848 billion by 2025 from an estimated value of $0.263 billion in 2020, growing at a CAGR of 26.4% during the forecast period”.
If you’re interested in investing in hydrogen and fuel cell technologies, here are 10 hydrogen and fuel cell stocks (including one ETF) to investing in:
1. Plug Power (NASDAQ: PLUG)
Plug Power Inc. provides hydrogen fuel cell turnkey solutions for the electric mobility and stationary power markets in North America and Europe.
It focuses on proton exchange membrane (PEM) fuel cell and fuel processing technologies, and fuel cell/battery hybrid technologies, as well as related hydrogen and green hydrogen generation, storage, and dispensing infrastructure.
The company offers GenDrive, a liquid hydrogen-fueled PEM fuel cell system that provides power to material handling electric vehicles; GenFuel, a hydrogen fueling delivery, generation, storage, and dispensing system; GenCare, an ongoing internet of things-based maintenance and service program for GenDrive and GenSure fuel cells, GenFuel hydrogen storage and dispensing products, and ProGen engines; and GenSure, a stationary fuel cell solution that offers modular PEM fuel cell power to support the backup and grid-support power requirements of the telecommunications, transportation, and utility sectors.
It also provides GenKey, an integrated turn-key solution for transitioning to fuel cell power; ProGen, a fuel cell stack and engine technology used in mobility and stationary fuel cell systems, and as engines in electric delivery vans; and GenFuel Electrolyzer, a hydrogen generator optimized for clean hydrogen production.
The company offers its products to retail distribution and manufacturing businesses through a direct product sales force, original equipment manufacturers, and dealer networks.
Plug Power Inc. was founded in 1997 and is headquartered in Latham, New York.
2. FuelCell Energy (NASDAQ: FCEL)
FuelCell Energy, Inc., together with its subsidiaries, designs, manufactures, sells, installs, operates, and services stationary fuel cell power plants for distributed baseload power generation.
The company offers SureSource product line based on carbonate fuel cell technology in various configurations, including on-site power, utility grid support, distributed hydrogen, and carbon utilization, as well as micro-grid and multi-megawatt applications; and SureSource Recovery power plants for natural gas pipeline applications.
It also provides SureSource Capture system that separates and concentrates carbon dioxide from the flue gases of natural gas, biomass, or coal-fired power plants, as well as industrial facilities; and SOFC/SOEC and Energy Storage, a solution for energy storage using solid oxide technology.
The company’s SureSource power plants generate clean electricity, usable heat, water, and hydrogen. It serves various markets, such as utilities and independent power producers, industrial and process applications, education and health care, data centers and communication, wastewater treatment, government, microgrids, and commercial and hospitality.
The company primarily operates in the United States, South Korea, England, Germany, and Switzerland.
FuelCell Energy, Inc. was founded in 1969 and is headquartered in Danbury, Connecticut.
3. Ballard Power Systems (NASDAQ: BLDP)
Ballard Power Systems Inc. engages in the design, development, manufacture, sale, and service of proton exchange membrane fuel cell products primarily in Canada.
The company offers heavy-duty modules, marine systems, fuel cell stacks, backup power systems, and material handling products.
It also provides technology solutions, including engineering and technology transfer, as well as licenses and sells intellectual property portfolio and fundamental knowledge for various proton exchange membrane fuel cell applications.
The company serves transit bus, rail, critical infrastructure, marine, material handling, stationary power, truck, and automotive markets.
It markets its products in China, Germany, the United States, the United Kingdom, Belgium, Japan, Denmark, France, Taiwan, Norway, Spain, the Netherlands, Finland, Switzerland, and internationally.
Ballard Power Systems Inc. has a strategic alliance with Linamar Corporation for the co-development and sale of fuel cell powertrains and components for class 1 and 2 vehicles in North America and Europe.
The company was founded in 1979 and is headquartered in Burnaby, Canada.
4. AFC Energy (LSE: AFC) (OTC: AFGYF)
AFC Energy plc engages in the development of alkaline fuel cell systems for the generation of clean energy in the United Kingdom and Germany.
The company offers HydroX-Cell(L), an alkaline fuel cell module; HydroX-Cell(S); and AlkaMem, an anion exchange membrane technology for alkaline water electrolysis, alkaline fuel cells, fuel synthesis, electrodialysis, desalination, acid remediation, saltwater batteries, and REDOX flow batteries applications.
It also provides auxiliary equipment, such as ammonia crackers, water electrolyzes, inverters, battery and fuel storage products, and battery management systems.
The company was incorporated in 2006 and is headquartered in Cranleigh, the United Kingdom.
5. Bloom Energy (NYSE: BE)
Bloom Energy Corporation designs, manufactures, and sells solid-oxide fuel cell systems for on-site power generation in the United States, Japan, China, India, and the Republic of Korea.
The company offers Bloom Energy Server, a power generation platform that converts standard low-pressure natural gas, biogas, or hydrogen into electricity through an electrochemical process without combustion.
It serves hospitals, healthcare companies, retailers, and data centers.
The company was formerly known as Ion America Corp. and changed its name to Bloom Energy Corporation in September 2006. ‘
Bloom Energy Corporation was incorporated in 2001 and is headquartered in San Jose, California.
6. Linde (NYSE: LIN)
Linde plc operates as an industrial gas company in North and South America, Europe, the Middle East, Africa, and the Asia Pacific.
It offers oxygen, nitrogen, argon, rare gases, carbon dioxide, hydrogen, helium, electronic and specialty gases, acetylene, and carbon monoxide.
The company also designs and constructs turnkey process plants, such as olefin, natural gas, air separation, hydrogen and synthesis gas, and other plants.
It serves healthcare, petroleum refining, manufacturing, food, beverage carbonation, fiber-optics, steel making, aerospace, electronics, chemical, and water treatment industries.
The company was founded in 1879 and is based in Guildford, the United Kingdom.
7. Air Products and Chemicals (NYSE: APD)
Air Products and Chemicals, Inc. provides atmospheric gases, process, and specialty gases, equipment, and services worldwide.
The company produces atmospheric gases, including oxygen, nitrogen, argon, and rare gases; process gases, such as hydrogen, helium, carbon dioxide, carbon monoxide, syngas, and specialty gases; and equipment for the production or processing of gases comprising air separation units and non-cryogenic generators for customers in various industries, including refining, chemical, gasification, metals, manufacturing, food and beverage, electronics, magnetic resonance imaging, energy production and refining, and metals.
It also designs and manufactures equipment for air separation, hydrocarbon recovery and purification, natural gas liquefaction, and liquid helium and liquid hydrogen transport and storage.
Air Products and Chemicals, Inc. has a strategic collaboration with Baker Hughes Company to develop hydrogen compression systems.
The company was founded in 1940 and is headquartered in Allentown, Pennsylvania.
8. Cummins (NYSE: CMI)
Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide.
It operates through five segments: Engine, Distribution, Components, Power Systems, and New Power.
The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers new parts and services, as well as remanufactured parts and engines.
It also provides power generation systems, high-horsepower engines, heavy and medium-duty engines, application engineering services, custom-designed assemblies, retail and wholesale aftermarket parts, and in-shop and field-based repair services.
In addition, the company offers emission solutions; turbochargers; air and fuel filters, fuel water separators, lube, and hydraulic filters, coolants, fuel additives, and other filtration systems; and electronic control modules, sensors, and supporting software, as well as new, replacement, and remanufactured fuel systems.
Further, it provides automated transmissions; standby and prime power generators, controls, paralleling systems, and transfer switches, as well as A/C generator/alternator products under the Stamford and AVK brands; and electrified power systems with components and subsystems, including battery, fuel cell, and hydrogen production technologies.
Additionally, it offers filtration, after treatment, controls systems, air handling systems, automated transmissions, and electric power generation systems.
The company sells its products to original equipment manufacturers, distributors, dealers, and other customers.
The company was formerly known as Cummins Engine Company and changed its name to Cummins Inc. in 2001. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana.
9. Defiance Next Gen H2 ETF (HDRO)
The Fund seeks to track the total return performance of the BlueStar Hydrogen & NextGen Fuel Cell Index.
The Index is a rules-based index that tracks the performance of a group of globally listed equity securities of companies involved in the development of hydrogen-based energy sources and fuel cell technologies.
10. Ceres Power (LSE: CWR) (OTC: CPWHF)
Ceres Power Holdings plc, a fuel cell technology, and engineering company engages in the development and commercialization of fuel cell technology in North America, Asia, and Europe.
The company offers SteelCell, a solid oxide fuel cell (SOFC) that generates power from conventional and sustainable fuels, such as natural gas, biogas, ethanol, and hydrogen.
Its products are applied in the commercial, data center, transport, and residential markets.
Ceres Power Holdings plc has a strategic collaboration with AVL List GmbH to accelerate customer adoption and product development of SOFC technology; a collaboration and license agreement with Doosan Fuel Cell Co. Ltd to build a 50MW facility for the mass manufacture under license of Ceres’ fuel cell stacks in South Korea.
The company was founded in 2001 and is headquartered in Horsham, the United Kingdom.
I’m a Technology Stock Analyst, with focus on companies developing cutting-edge techs. Keeping track of cutting-edge techs, companies and stocks is what I do almost everyday. And I love it. Whether it’s artificial intelligence, 5g, or autonomous vehicles; I’m all in.
2 thoughts on “10 Best Hydrogen (Fuel Cell) Stocks for 2023 and Beyond”
Depending on who you talk to you hear completely different stories about the future. One camp thinks that lithium and microchip stocks is where the big money will be made in the future. Another camp thinks that hydrogen fuel cell stocks is where the big money will be made.
The whole big money play is not a zero sum game. We can have a future where the ‘big money’ flows to lithium, microchip and hydrogen/fuel cell stocks.
Energy demand is increasing exponentially decade after decade, one source of energy cannot fully satisfy those demands.
I looked into a study about the prospect of fossil fuels 30 years from now (by 2050) and it reveals that we’ll be using more fossil fuels by 2050 than we are today. Even fossil fuel stocks are going to experience growth within that time frame.