In the dynamic theater of renewable energies, green hydrogen is grabbing headlines, dazzling investors and policymakers alike.
Consequently, green hydrogen stocks are becoming the buzzwords in investment circles, resonating in both profit potential and planetary promise. From a humble 0.3 GW capacity in 2020, the forecast for 2030 is at a powerful 137 GW. Indeed, this stands as a testament to the industry’s exponential long-term growth trajectory.
However, investing in green hydrogen stocks isn’t a stroll through the park. It requires navigating the speculative twists and turns of an ever-evolving industry. And, as innovators push the envelope, tackling high production costs and infrastructural challenges, the narrative remains tinged with risk.
So, these stocks beckon the bold, blending the bright hues of opportunity with the sober shades of diligence.
Air Products and Chemicals (APD)
Air Products and Chemicals (NYSE:APD) is a top player in the hydrogen sphere. It channels a whopping $15 billion into clean energy projects by 2027.
This massive includes spearheading the NEOM Green project, expected to be the world’s largest green hydrogen initiative. On domestic soil, Air Products and Chemicals has partnered with AES Corporation to develop the largest green hydrogen production facility operating in the U.S. Also, APD is building the biggest blue hydrogen plant in Europe by 2026.
Furthermore, the strength of Air Products and Chemicals lies not just in its ambitious projects but also in its robust and varied revenue streams. With operations spanning continents and a solid mix of industrial gases and services, the firm is well-fortified to support its clean energy pursuits. Financially, APD demonstrates the flexibility and capability needed to deliver these projects on schedule. And this serves to reinforce its robust position as a dependable investment in the renewable energy sector.
Bloom Energy (BE)
Bloom Energy (NYSE:BE), the maestro of solid-oxide fuel cells, continues to excel. BE offers an array of carbon-neutral, combustion-free products that play a key role in the hydrogen economy. The company’s third-quarter performance is a testament to its momentum. It smashed through expectations with earnings of 15 cents per share and a record-breaking $400.3 million in sales.
The trajectory of Bloom Energy is upward, marked by a remarkable swing to a positive adjusted EBITDA of $66.4 million. It stands as a stark improvement from last year’s $13 million EBITDA loss. Indeed, the tide is turning in favor of hydrogen fuel cells. In fact, the company’s financials continue to impress, anticipating heightened revenue streams and cash flow. Analysts at TipRanks are echoing this optimism, bestowing a moderate buy rating on BE, with an eye-catching 33% upside potential. This paints Bloom Energy not just as a strong player but as a burgeoning powerhouse in renewable energy.
FuelCell Energy (FCEL)
FuelCell Energy (NASDAQ:FCEL) is rapidly emerging as a top-tier player in the renewable energy landscape, mainly in hydrogen technology. Under the leadership of President and CEO Jason Few, the firm is harnessing its innovative solid oxide electrolysis systems. These, when linked with nuclear-generated heat, result in a more cost-effective hydrogen production method.
Moreover, the company’s journey is marked by noteworthy collaborations. One such partnership is with International Business Machines. The deal leverages the potential of generative artificial intelligence to fine-tune operational efficiency and extend the lifespan of its fuel cells. This synergy of cutting-edge technology and clean energy solutions efficiently encapsulates the company’s forward-thinking approach.
Further cementing its position, FuelCell Energy is collaborating with EDF Energy in the Bay Hydrogen Hub consortium. They plan to revolutionize asphalt production through innovative hydrogen production techniques. Additionally, through a joint venture with Kinectrics and Bruce Power, FCEL is exploring ways to enhance power grid stability and broaden hydrogen’s applications in heavy vehicles and power generation. These initiatives mark major strides in the development of low-carbon hydrogen technologies. Therefore, it positions the firm at the forefront of the clean energy transition.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.