The Best Green Hydrogen Stocks to Buy Now (December 2023)

Written By Ben Broadwater

Updated December 8, 2023

Investors interested in emerging markets may consider investing in green hydrogen stocks, which are constantly praised by renewable energy enthusiasts as an essential part of the 100% renewable goal.

green hydrogen stocks to buy

What Are Green Hydrogen Stocks?

  • Green hydrogen stocks represent companies that produce, distribute, or use green hydrogen. This is a clean and emissions-free fuel that has the potential to decarbonize many sectors of the economy.
  • Green hydrogen stocks are a way to invest in the future of clean energy. Companies that produce, distribute, or use green hydrogen are working to decarbonize the economy and make a positive impact on the environment.

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Benefits of Green Hydrogen

  • Green hydrogen is a clean fuel. When hydrogen is burned, it produces only water vapor. This makes it a much cleaner alternative to fossil fuels, which produce pollutants that can harm the environment.
  • Green hydrogen is versatile. It can be used in a variety of applications, including transportation, manufacturing, and power generation. This makes it a more flexible fuel than other renewable energy sources, such as solar and wind power.
  • Green hydrogen is storable. It can be compressed and stored for later use. This makes it a more reliable fuel than solar and wind power, which are intermittent sources of energy.
  • Green hydrogen is scalable. The production of green hydrogen can be scaled up to meet the growing demand for clean energy. This makes it a viable option for reducing air pollution and other environmental impacts.

The Best Green Hydrogen Stocks Include:

  • Plug Power (PLUG)
  • Air Products and Chemicals (APD)
  • Bloom Energy (BE)
  • ITM Power (ITMPF)
  • Proton Motor Power Systems (FCEL)

These companies are all involved in different aspects of the green hydrogen market, from developing production technologies to building and operating hydrogen refueling stations.

Which Green Hydrogen Stocks Are Performing The Best?

green hydrogen stock chart

Out of the stocks listed here, Air Products and Chemicals (APD) is by far the most promising.

As a global leader in the industrial gases industry, the company provides a wide range of gases, equipment, and services to customers in a variety of industries. These include healthcare, electronics, manufacturing, and food and beverage.

Additionally, APD is a dividend aristocrat, having increased its dividend for 47 consecutive years. The company also has a strong balance sheet and a track record of free cash flow generation.

Air Products and Chemicals (APD) is increasingly focusing on green hydrogen, a clean-burning fuel that has the potential to decarbonize many sectors of the economy. The company has a number of projects underway to produce and distribute green hydrogen, and it is well-positioned to capitalize on the growing demand for this fuel.

In the most recent quarter, APD reported earnings per share of $2.33, beating analyst expectations of $2.28. Revenue for the quarter was $3.0 billion, up 7.2% year-over-year.

AloAPD’s stock price has been on a tear in recent months, and it is currently trading near its all-time high. The company’s strong fundamentals and growing focus on green hydrogen make it a good long-term investment.

Here are some of the factors that could drive APD’s stock price in the future:

  • Continued growth in the industrial gases market
  • Increasing demand for green hydrogen
  • Acquisitions of complementary businesses
  • Strong free cash flow generation

Overall, APD is a well-managed company with a bright future. The company may be a good investment for those who are looking for a dividend-paying green hydrogen stock.

Here are some additional details about APD’s green hydrogen business:

  • The company has a number of projects underway to produce and distribute green hydrogen, including a $5 billion project in Saudi Arabia.
  • APD is also developing a technology to produce green hydrogen from waste.
  • The company has partnered with other companies to develop green hydrogen applications, such as fuel cells for transportation.

APD is well-positioned to be a major player in the green hydrogen market. The company has the resources, the expertise, and the partnerships to succeed in this growing market.

 

Green Hydrogen Stocks – Potential Risks

  • The high cost of production: Green hydrogen is currently more expensive to produce than other forms of energy, such as natural gas. This could limit its adoption in the near term.
  • The lack of infrastructure: There is currently a lack of hydrogen refueling stations and other infrastructure needed to support the use of green hydrogen. This could make it difficult to deploy green hydrogen at scale.
  • The need for government support: Governments need to provide support for the development of the green hydrogen market, such as through subsidies and tax breaks. This could be a challenge in some countries.

Despite these risks, the potential rewards of investing in green hydrogen stocks are significant. 

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Investing in Green Hydrogen Stocks – Final Thoughts

As the demand for green hydrogen grows, companies that are well-positioned to capitalize on the rapid growth of the global green hydrogen market could see significant returns in the coming years.

However, it is important to note that the green hydrogen market is still in its early stages of development. There are a number of challenges that need to be overcome before it can become a mainstream energy source. These challenges include the high cost of production, the lack of infrastructure, and the need for government support.

Investors who are considering investing in green hydrogen stocks should carefully weigh the risks and rewards before making a decision.

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