With the green energy boom, keep an eye on the best hydrogen stocks on the market. The Biden Administration just announced its goal of producing 50 million metric tons of clean hydrogen fuel by 2050. “If successful,” says CNN, “it could cut around 10% of global pollution.” In fact, according to the U.S. Energy Secretary Jennifer Granholm, “Clean hydrogen is the “Swiss army knife of zero-carbon technologies. If we get it right, it can do just about everything.”
Remember, according to Goldman Sachs, hydrogen could become a $12 trillion market by 2030. And, according to the International Energy Agency, “To reach net zero emissions by 2050, annual clean energy investment worldwide will need to more than triple by 2030 to around $4 trillion,” as I noted earlier this week.
So, where should we invest in a piece of the red-hot hydrogen space? Here are three of the best hydrogen energy stocks to consider, including an ETF that offers even more exposure to hydrogen ideas.
FuelCell Energy (FCEL)
After a strong start to the year, FuelCell Energy (NASDAQ:FCEL) was a disaster. In fact, it slipped from a high of about $4.25 to a low of $1.75. However, don’t write the stock off just yet. Not only did it bottom out, but it’s showing big signs of life, recovering to $2.60.
While the company posted a wider-than-expected loss in the second quarter, revenue more than doubled year-over-year. A loss of nine cents was wider than the eight-cent loss posted a year ago. Revenue jumped to $38.3 million, which was better than year-earlier revenue of $16.4 million. Analysts were looking for a loss of eight cents on revenue of $25.5 million.
Even better, the company is seeing greater interest thanks to the European Union’s Carbon Border Adjustment Mechanism. The company is also seeing greater interest thanks to the Inflation Reduction Act in the United States, and the Green Deal in the European Union.
BP (BP)
Another hydrogen stock to consider is BP (NYSE:BP), which has a goal of capturing 10% of the hydrogen boom in “core markets” by 2030. In fact, in late 2022, BP CEO Bernard Looney placed bets on hydrogen to power low-carbon businesses.
According to Reuters, “Low-carbon hydrogen already has a big fan base and is forecast to play a major role in reducing greenhouse gas emissions from heavy industries and some forms of transport. But it is expensive to produce and often needs government support to compete against fossil fuels.”
However, with the U.S. IRA offering billions in funding, BP is developing a low-carbon hydrogen hub around its Indiana refinery. BP also just announced it would invest $8 billion more into “transition growth engines,” such as hydrogen and carbon capture and storage, as noted by the Carbon Neutral Coalition.
In addition, by 2030, the company wants to produce between 0.5 and 0.7 million tonnes per year of primarily green hydrogen. Plus, according to BP, it and Linde (NYSE:LIN) want to advance a carbon capture and storage project that will allow for hydrogen production in Houston.
Fusion Fuel Green (HTOO)
Or, we can look at Fusion Fuel Green (NASDAQ:HTOO), a small $47.64 million company out of Ireland. Just last month, it entered into an equipment supply contract with Consejo Superior de Investigaciones Científicas for a 550-kW solar-to-green hydrogen project in Zaragoza, Spain. Before that, it entered into a 10-year hydrogen contract with Hydrogen Ventures for 30 tons of green energy a year. Even better, in March, the company won a 6.4 million euros grant to develop a 1 MW decentralized green hydrogen production facility.
Also, in its most recent quarter, the company reported revenue of EUR 582,000, as compared to EUR 0 year over year.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
