Hydrogen has long been lauded for its potential in the clean energy realm. As we wade deeper into the 21st century, green hydrogen stocks are not only sparking the interest of environmental enthusiasts but also establishing themselves as astute picks for visionary investors.
The U.S. government’s profound commitment to climate change has led it to embrace green hydrogen’s untapped aptitude. This commitment became evident following the 2022 Inflation Reduction Act. This transformative legislation directed an astounding $370 billion into the clean energy sector. More specifically, $9.5 billion was allocated solely for green hydrogen projects. Additionally, Goldman Sachs’s prediction of the hydrogen market blooming into a whopping $1 trillion a year industry incites confidence in investors.
Moreover, with the U.S. Department of Energy recently announcing an investment of $1 billion in hydrogen production projects, it’s apparent that the future is not just bright but green. As the energy landscape undergoes this vibrant transition, investors are determined to make the most of it. Here are the three most promising green hydrogen technologies poised to influence this electrifying future.
Bloom Energy (BE)
Bloom Energy (NYSE:BE) boasts a dazzling 80% market share in the fuel cell market in the U.S., showcasing its powerhouse status. It has pulled off a remarkable feat, effectively pivoting towards the burgeoning hydrogen fuel cell market. Its recent 10-megawatt solid oxide fuel cell installation at Unimicron Technology Corporation in Taiwan speaks volumes about its efforts in the space. Moreover, the contract, delivered in just five months, underscores its agility in offering nimble power solutions.
Financially, there’s a mixed bag with promising glimmers. Bloom astounded with almost a 24% year-over-year second-quarter revenue surge, raking in a staggering $301 million. However, as it navigates through financial hurdles — a $54.5 million operating loss — the company remains undeterred in its growth-first approach. Moreover, TipRanks analysts predicted a robust buy with a stupendous potential upside of 71.16%, promising an exhilarating journey ahead.
Plug Power (PLUG)
Plug Power (NASDAQ:PLUG) is one of the top pure-plays in the hydrogen fuel space, deploying more than 60,000 fuel cell systems worldwide. Despite the turbulence of the stock market this year, the firm has effectively marched to its own beat. Evidence of this includes the robust 72% surge in second-quarter revenue, reaching a commendable $260.18 million, beating the market consensus by a promising 5%.
Despite a quarterly loss of 40 cents per share, Plug’s cryogenics and liquefaction sectors displayed impressive growth, growing by 283% from the second quarter of 2022. Additionally, after clinching a deal in Australia, Plug secured the title of the largest announced project in the European oil and gas sector with its 100 MW green hydrogen electrolyzers. With such momentum and a blooming trajectory, Plug Power seems poised for substantial growth. Moreover, TipRanks analysts forecast a bullish $19.98 per share for this green hydrogen stock, pointing to a stunning 126% upside.
Air Products and Chemicals (APD)
Diving into the green hydrogen realm, Air Products and Chemicals (NYSE:APD) emerges as a tantalizing spectacle for potential investors. Though it recently saw a 6% post-earnings price dip, Wall Street analysts eye an average price target of $335.67, implying a potential 18% upside.
Furthermore, the company reported stellar third-quarter results, boasting adjusted earnings of $2.98 per share, a commendable 16% year-on-year rise. With a potential 7% to 10% bump expected for the fourth-quarter EPS, APD is powering forward with considerable aplomb.
The enchantment doesn’t end there. Its project in NEOM Green in Saudi Arabia is set to churn out up to 600 tonnes of carbon-free hydrogen daily. Meanwhile, a $1.6 billion hydrogen facility in Canada is under construction, and the company unveiling a dazzling $4 billion blueprint to pioneer Texas’s first mega-green hydrogen hub points to its massive growth trajectory ahead.
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.
