The hydrogen industry is booming and stocks related to this promising technology are capturing the attention of investors. As the world strives to reduce carbon emissions and find sustainable solutions for energy supply, hydrogen companies are becoming key players in this transition. This has led to the rise of hydrogen stocks to watch.
Moreover, advancements in electrolysis methods are making it increasingly feasible to produce hydrogen using renewable energy sources, further enhancing its green credentials.
We’ll explore the best hydrogen stock picks to invest in right now. From leading hydrogen technology companies to renewable energy companies, these picks represent exciting opportunities for investors interested in the future of the hydrogen industry.
Air Products (APD)
Air Products (NYSE:APD) is one of the leading companies in hydrogen technology and industrial gas equipment. They have achieved strong financial results in the third quarter of fiscal 2023 compared to the prior year.
Their adjusted EPS has increased by 16% and their adjusted EBITDA has increased by 12%. In addition, they have experienced significant improvements in net profit margins. They have been delivering strong results in all of their regional segments through increased pricing and volumes.
Recently, they have completed the financial closing of the world’s largest green hydrogen production plant in partnership with ACWA Power and NEOM. This plant will produce green hydrogen in the form of green ammonia and Air Products will be the sole purchaser of all production. This makes it one of those hydrogen stocks to watch.
They have also signed a $1 billion investment agreement with the Republic of Uzbekistan and Uzbekneftegaz JSC to acquire and operate a gas-to-syngas processing plant. In addition, they have announced new projects related to liquefied natural gas technology and equipment and have expanded their LNG equipment manufacturing capacity.
Air Products continues to support the decarbonization of heavy-duty trucking and has made investments in hydrogen supply and technology in North America and Europe.
Plug Power (PLUG)
Plug Power (NASDAQ:PLUG) is another leader in integrated hydrogen solutions. They have reported second-quarter results, where their adjusted loss per share was larger than expected. However, they have experienced a significant increase in revenues, with a 72% increase compared to the previous year.
They have secured an order for 100 megawatts of proton exchange membrane (PEM) electrolyzers, which will be powered by 100% renewable energy. These electrolyzers will generate green hydrogen to replace gray hydrogen in the oil refining process. This transition will allow a reduction of approximately 516 tons of CO2 per day. All in all, PLUG is one of those hydrogen stocks to watch.
The company has also signed an agreement with Blue EnerFreeze, a subsidiary of STEF, the European market leader in the transport and logistics of food products. This agreement involves the implementation of a complete green hydrogen ecosystem at two distribution centers, with the possibility of expansion to more than 100 additional sites.
Plug Power’s hydrogen fuel cell technology is ideally suited to cold storage environments, offering superior performance and increased productivity in demanding mobility applications.
Linde (LIN)
Linde (NYSE:LIN) is one of the world’s largest industrial gas companies and hydrogen solutions providers. In the second quarter, sales were $8,204 million, down 3% from a year earlier but up 2% when excluding certain costs and currency fluctuations. Underlying sales were up 6% due to a 7% increase in prices, slightly offset by a 1% decrease in volumes.
They have announced that they have signed two major agreements in Brazil for the supply of renewable energy. These agreements will enable Linde to secure more than two million megawatt-hours per year of renewable energy, replacing almost half of its current energy consumption in Brazil. This increase in renewable energy supply supports Linde’s emissions reduction targets and its ambition of climate neutrality by 2050.
In addition to reducing their own emissions, they also seek to help their customers decarbonize their processes by using industrial gases with a lower carbon footprint. They estimate that their solutions, technologies, and services help avoid more than double the emissions generated by their own operations.
They have also signed a long-term agreement with Exxon Mobil (NYSE:XOM) for the use of carbon dioxide associated with Linde’s new clean hydrogen production in Beaumont, Texas. This agreement will allow Exxon Mobil to transport and permanently store up to 2.2 million metric tons of carbon dioxide per year, equivalent to the emissions from nearly half a million cars per year.
That concludes our list of hydrogen stocks to watch.
As of this writing, Gabriel Osorio-Mazzilli did not hold (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.
