Raymond James analyst Pavel Molchanov raised the price target of BE to $29 from $23. To diversify your portfolio, besides picking individual hydrogen stocks, consider getting a basket of stocks using an ETF. In this manner, you can spread the risk in several stocks with just one purchase.
Goldman Sachs says the hydrogen space could be a $12 trillion market by 2030. Analysts at Bank of America say green hydrogen could be worth more than $11 trillion by 2050. Morgan Stanley sees a potential $11 trillion hydrogen opportunity, too. It goes without saying that it’s a good time to consider exposure to some of the best hydrogen stocks. Considering the industry growth potential, quality hydrogen stocks are poised for multibagger returns.
The analyst consensus is a moderate buy with an average price target of $25.08. There is a wide-ranging suite of applications of fuel cells in the power generation and transportation sector, with heavy industry gaining the most traction at this early stage. FCEL has had to struggle to get and keep a foothold in the growing renewable energy sector, with a large proportion of recent investment going into the ever-cheaper solar cell voltaic sector. Declining revenues have meant that the board has had to continue to tap the capital markets and dilute their share price. For those early investors willing to take a risk on the explosion in the requirement for fuel cells and Bloom’s positioning in that market, there is certainly potential for upside in BE’s share price over the next few years.
Founded in 2001, the company is based in San Jose, California, and instead of using hydrogen fuel cells, has been providing electricity using solid oxide fuel cells since 2010. Since its inception, Bloom Energy has raised more than $1 billion in venture capital funding and went public in 2018. The company’s GenDrive system integrates hydrogen fuel cells manufactured by both Plug Power and Ballard Power Systems. This hydrogen fuel cell technology is that GenDrive units have a hydrogen storage capability that allows them to be “recharged” in minutes versus the several hours it takes for regular lead-acid batteries. Hydrogen stocks are companies focusing on the production of hydrogen fuel cells.
It would help if you considered this risk when investing in hydrogen stocks. If more prominent companies find interest in these pure-play companies, they might acquire them. Alternatively, you can invest in extensive stocks that operate in multiple industries and engage in fuel cell production. Plug Power is building the hydrogen economy as the leading provider of comprehensive hydrogen fuel cell (HFC) turnkey solutions. As an overview, Bloom Energy is a producer of solid-oxide hydrogen fuel cells.
Factors such as security protocols, regulatory compliance, deposit insurance, customer service, and fees vary between different platforms – so it’s important to compare different options before committing your money. Not only does it provide broad diversification, but it also provides it at a low cost. $13 a share ETF has an expense ratio of 0.45% and offers exposure to 30 stocks of companies operating in the hydrogen market. Some of its top holdings are already listed here, including Plug Power, Bloom Energy, Ballard Power, and Air Products and Chemicals. Air Products and Chemicals, Inc. is a leading American multinational company dedicated to providing industrial gasses and chemicals for a wide range of purposes. In addition, Air Products also provides process and speciality gasses as well as performance materials and chemical intermediates to customers across the world.
As it stands now, the analyst consensus is a strong buy with an average price target of $18.63. Its large and comfortable balance sheet makes possible the kind of large-scale heavy infrastructure projects required for profitable operations and renewable operations. Indeed, the Asian Renewable Energy Hub is one of these investments – one that will see hydrogen stock investors engaged with BP’s exploits in this sector for much time to come.
Defiance Next Gen H2 ETF (HDRO)
The AREH is a large green hydrogen, solar, and wind infrastructure development in the North West of Australia that will develop around 1.6 million MT of hydrogen per year. Once derived from the water, the hydrogen can be routed into existing industrial processes or into the expanding fuel cell market. Fuel cells are a rebinding of the hydrogen and water molecules via a catalyst, generating an electrical current. It is not the current utility, but the possibilities in the extraction and application of hydrogen that has everyone in the CO2 emission reduction bracket excited. Hydrogen is a virtually unlimited resource that can be extracted via the electrolysis of water and if the power supply is renewable, the emissions post installation of infrastructure is virtually zero.
This will not only help the environment but also lead to new, potential business opportunities. With higher inflation and the Fed raising interest rates, among other factors, HON stock has seen a fall of 14% this year. See how low Honeywell stock can go by comparing its decline in previous market crashes. Here is a performance summary of all stocks in previous market crashes.
Westport Fuel Systems’ technology delivers the performance and fuel efficiency required by transportation applications and the environmental benefits that address climate change and urban air quality challenges. Headquartered in Vancouver, Canada, with operations in Europe, Asia, North America, and South America, the company serves customers in more than 70 countries with leading global transportation brands. In May, Accelera started electrolyzer production in Minnesota, US.
Elixir Energy
However, infrastructural realities may dictate that hydrocarbon energy platforms will be with us for decades. Therefore, SHEL provides balance among the best hydrogen stocks to buy. Plug Power is building an end-to-end green hydrogen network to produce, store, and deliver the fuel across North America and Europe. It expects to produce 2,000 tons of green hydrogen per day by 2030.
- Carrying everything from water to natural gas, companies here can be a low-risk investment.
- If you have some loose change lying around, ITM could be interesting.
- Goldman Sachs, for example, initiated a buy rating, with a price target of $296.
- At the current $211.03, the potential upside growth is 18 percent based on an average price target of $280.
One example of a hydrogen ETF gaining a foothold is Global X Hydrogen ETF (HYDR). Therefore, it’s essential to watch hydrogen stocks and understand why they fluctuate up or down. You can buy shares in major companies like Toyota or Shell or invest in smaller companies developing new hydrogen technology.
The good news is the company does expect stronger results next year, with sales of $1.4 billion, which came in line with forecasts. Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.
Although clean hydrogen holds great promise as a potential emissions-free fuel source, it’s costly to produce. It costs about $1.50 per kilogram to produce hydrogen from natural gas and $5 per kilogram to produce clean hydrogen. The U.S. Department of Energy wants to get the cost of clean hydrogen down to $1.00 per kilogram over the next decade to make it a more competitive fuel source.
Why are hydrogen stocks falling?
Its $7 billion carbon-free hydrogen joint venture in Saudi Arabia is the biggest. The project would use renewable energy to produce 650 tons per day when completed in 2025. The project and others under development position Air Products to remain a leading https://bigbostrade.com/ global hydrogen energy company. The hydrogen and fuel cell market has come under increased media spotlight in the past few years as policymakers around the globe use energy transition as an important stepping stone on the road to zero emissions.
That hydrogen can be used to power high-temperature furnaces used in the manufacturing processes. “When the Bloom electrolyzer is paired with intermittent renewable resources, such as wind and solar, the resulting green hydrogen provides an important storage mechanism,” the company says. “Hydrogen can be stored for long periods of time and transported over long distances. Alternatively, Bloom Energy’s fuel cells can convert this hydrogen to electricity, thereby providing continuous, reliable power.” Bloom Energy is one of the leading companies in the hydrogen stocks industry.
That’s changing in 2022 because of a rapid reduction in hydrogen fuel cell costs and new subsidies for green hydrogen production from the recently passed Inflation Reduction Act. Furthermore, their average price target hit $26.67, implying an upside potential of 53.45%. Finally, hedge fund sentiment for PLUG rates as very positive, making it one of the best hydrogen stocks to buy for gamblers. Energy exploration and development company Elixir Energy’s projects encompass both natural gas and renewables, including a green hydrogen project in Mongolia.
Fusion Fuel Green
The analysts compiled a list of green hydrogen stocks with the requisite electrolyzer technology. Here’s another company that makes both hydrogen fuel cells and electrolyzers. “The remarkable potential of hydrogen fuel cell vehicles to reduce emissions from the transportation sector fuels the market growth rate,” the company says.
If you’re looking for hydrogen penny stocks with low volatility (an average of 12.02%), we recommend you check out ITM Power Plc. The most expensive stocks are not necessarily the most profitable, and Westport Fuel Systems Inc. is living proof of that. Namely, the company is doing much better than most of its industry peers. They’re also working with Hyundai Motor Company and Kia Corporation to develop an alkaline water electrolysis system for generating hydrogen.
Indeed, it can be transformed to electricity and methane, driving myriad applications. In 2023, the company agreed to invest $1.8 billion to supply clean energy to a large-scale blue ammonia plant in Texas. forex backtesting software Linde plans to build the carbon capture infrastructure needed to sequester more than 1.7 million metric tons of carbon dioxide per year, offsetting the emissions of the hydrogen supplied to the plant.
The Gobi H2 green hydrogen and solar project is a joint venture with renewable energy firm SB Energy. The federal government is heavily invested in the sector both in terms of funding and the implementation of clean energy policies. Fusion Fuel Green Public Limited Company is a green hydrogen production and technology business with a focus on finding solutions to address the global climate crisis. Through their innovative approach, they have created an integrated solar-to-hydrogen generator that is powered by their own miniaturized PEM electrolyzer, which generates green hydrogen using solar energy. The company’s fuel cells are subsidized by government incentive programs for green energy and have been installed in over 600 megawatts worth of projects. In 2021, Bloom Energy launched the Bloom Electrolyser which produces clean hydrogen 15% to 45% more efficiently than its competitors.
Another European company, U.K.-headquartered ITM Power, was founded in 2001 and claims to be the first hydrogen-related company to be listed on the London Stock Exchange. It expects a second, bigger factory will be operating by the end of 2023. “In recent years, interest in green hydrogen has increased rapidly worldwide,” the company says. Hydrogen and fuel cell companies around the world are investing heavily in research and development to improve the durability of the new technology.
In June of this year, the Wall Street Journal featured Plug Power and its green hydrogen ambitions. This is natural gas-derived hydrogen, which of course is the least renewable form of the element. Plug admits that it’s been wondering in the “wilderness” but that it’s ready to come out with truly effective solutions. For example, in the U.K., it’s developing plans to build that country’s largest blue hydrogen production plant (H2Tesside). It’s also developing HyGreen Tesside, a large-scale green hydrogen production facility. The projects could deliver 15% of the U.K.’s 2030 target for low-carbon hydrogen production.
Nikola Corporation is globally transforming the transportation industry. Stock trading advisory websites help investors make the right financial decisions. Many energy and industrial companies are in the early stages of exploring the possibility of hydrogen energy.
Its research tools are not quite far-reaching and may be underwhelming for advanced traders, yet the platform covers all of the fundamentals and provides a unique focus on social trading. Still, this could be a signal for speculators to dive in before shares really take off. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
