Hydrogen is compelling because it can decarbonize hard-to-electrify sectors, such as heavy industry, long-haul transport, and potentially power generation and storage. The catch is that hydrogen isn’t a primary energy source. It has to be produced, and the cleanest methods cost more than fossil alternatives today.
That’s why hydrogen is best viewed as a long-duration theme: massive potential, but timelines and economics still need work.
What to know about investing in hydrogen
There are a few things investors should know about the hydrogen industry before investing in the sector, including:
- Not all hydrogen is the same: There are several ways to produce hydrogen, some of which produce carbon dioxide as a byproduct. The industry refers to hydrogen produced from burning natural gas as "blue hydrogen," which requires carbon capture and storage (CCS) to isolate greenhouse gas emissions. "Green hydrogen," produced by renewable energy to power an electrolyzer that splits hydrogen from water molecules, doesn't emit any greenhouse gases. Green and blue are two of the many colors used to classify hydrogen by its production method and emissions profile.
- The key variable is cost: Right now, producing hydrogen from natural gas can be much cheaper than producing clean hydrogen. Many of the bull cases assume that clean hydrogen costs will fall sharply over time, which depends on technology, scale, and policy support.
- Massive market opportunity, but adoption is difficult: Hydrogen already has meaningful industrial uses, and fuel cells are being deployed in certain vehicles and stationary power setups. But big growth depends on project approvals, infrastructure build-out, and long-term offtake contracts.
- Hydrogen stocks are not one “category”: "Hydrogen stocks” can mean very different things. Some are large industrial and energy companies where hydrogen is one growth lever among many. Others are pure-play fuel cell or electrolyzer companies that depend heavily on funding, policy, and project timing. That difference matters, not just for potential upside, but for volatility and risk.
Top hydrogen stocks to consider
Given the potential of clean hydrogen, a growing number of companies are investing in the sector. Many energy and industrial companies are in the early stages of exploring hydrogen energy.
Here are nine leading hydrogen companies to watch as the industry matures.
NYSE: APD
Key Data Points
Air Products has several major hydrogen projects underway that it expects to complete in the coming years. For example, it has completed 80% of the construction of its NEOM Green Hydrogen Project in Saudi Arabia, which should begin production by 2027. It's also working on a potential $8 billion blue hydrogen project in Louisiana that it could approve by the middle of 2026. In December 2025, Air Products reported that it was in advanced negotiations to potentially connect these projects to Yara's world-scale ammonia network.
2. Ballad Power Systems
NASDAQ: BLDP
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Ballard Power Systems (BLDP +7.26%) is a pioneer in the hydrogen industry. The Canadian company debuted the world's first fuel cell bus more than 30 years ago. Today, Ballard produces zero-emission fuel cells for the electrification of buses, commercial trucks, and marine vehicles, as well as stationary power solutions.
Ballard reported strong fourth-quarter results in March 2026. Revenue rocketed 37% year over year in the quarter and 43% for the full year to $99.3 million, driven by record breaking egine deliveries. The company also recorded strong order intake of $20.1 million in the fourth quarter.
Last year marked a turning point for Ballard. Its revenue soared, and it made excellent progress reducing costs, meaningfully improving its profitability. It generated positive cash flow from operating activities in the fourth quarter, the highest level in the last decade.
3. Plug Power
NASDAQ: PLUG
Key Data Points
Plug Power (PLUG +15.65%) is a pioneer in the hydrogen fuel cell industry. It created the first commercially viable market for hydrogen fuel cell technology and has deployed an industry-leading 74,000 fuel cell systems for the e-mobility market (using electric powertrain technologies to power vehicles and fleets).
It's one of the world's largest hydrogen buyers and operates a leading hydrogen refueling network in North America with more than 285 fueling stations. Plug Power is building an end-to-end green hydrogen network to produce, store, and deliver the fuel across North America and Europe.
Plug Power has struggled to fund its operations and growth over the years due to its heavy operating losses. However, cost-cutting initiatives and new financing put the company on track to fully fund its current business plan. The company generated over $700 million in revenue in 2025 and expects to finally reach full profitability by the end of 2028.
4. Bloom Energy
NYSE: BE
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Bloom Energy's (BE +5.01%) mission is to produce clean, reliable, and affordable energy. The company has developed the Bloom Energy Server, an electric power-generation platform. It also created the Bloom Electrolyzer, using the same solid oxide technology as its Bloom Energy Server. The product can produce clean hydrogen 15% to 45% more efficiently than others on the market.
Bloom Energy believes the Bloom Electrolyzer is a major leap forward for hydrogen. It hopes the technology will enable heavy industries, such as steel, chemicals, cement, and glass manufacturing, to decarbonize.
Bloom Energy can pair its Bloom Electrolyzer with solar energy and wind energy to generate green hydrogen, which it can store and eventually turn back into electricity for future use. It has the potential to be the solution of choice for powering artificial intelligence (AI), including data centers and businesses using the technology for productivity gains.
Bloom Energy grew its revenue by more than 37% in 2025 to over $2 billion. It also delivered its second straight year of positive cash flow from operations. With a total backlog of $20 billion, Bloom Energy should continue growing briskly.
5. Linde
NASDAQ: LIN
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NYSE: CMI
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NASDAQ: FCEL
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ITM Power designs and manufactures proton exchange membrane (PEM) electrolysers to produce green hydrogen. Based in England, ITM has spent the past quarter-century developing the world's most advanced PEM electrolyser technology. CEO Dennis Shultz believes "green hydrogen will play an important role in the energy transition." That's driving his strategy to become a more focused, more capable technology and manufacturing company to meet the fast-growing demand for green hydrogen.
As of early 2026, the company had nearly 500 megawatts (MW) of electrolyzers either deployed or under contract. Meanwhile, it had over 550 MW of additional capacity reservations.
8. Tidewater Renewables
TSX: LCFS
Key Data Points
Tidewater Renewables is a renewable fuels company. Its objective is to become the leading renewable fuel producer in Canada.
The company operates a complex for renewable diesel and renewable hydrogen in Canada. The facility produces renewable hydrogen, which it uses in its refinery operations. Tidewater Renewables has also proposed building a sustainable aviation fuel facility at that complex, which would utilize clean hydrogen to produce sustainable aviation fuels.
Benefits and risks of investing in hydrogen stocks
Investing in hydrogen stocks has its share of pros and cons. Some benefits of investing in hydrogen stocks include:
- Growth potential: Hydrogen could become a multitrillion-dollar global market in the coming decades, potentially fueling strong gains for top hydrogen stocks.
- Cleaner: Hydrogen is a cleaner fuel than oil and natural gas, so investing in the sector can help protect the environment.
- Diversification: Investing in the hydrogen sector can help diversify your portfolio.
- Income potential: Some hydrogen stocks pay dividends, enabling you to generate some passive income.
On the other hand, some risks of investing in hydrogen stocks include:
- Market challenges: The hydrogen market is highly volatile, driven by fluctuating prices and changing government policies. These and other issues have caused some hydrogen companies to cancel major expansion projects.
- Higher-risk companies: Many hydrogen companies have higher risk profiles due to money-losing operations and weaker balance sheets.
How to invest in hydrogen stocks
Here's a step-by-step guide on how to invest in hydrogen stocks:
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Future outlook for the hydrogen fuel industry
Several energy companies have delayed or canceled hydrogen projects over the past year due to challenging market conditions. However, the industry's outlook remains bright. According to the International Energy Agency, "Projects that are operational, under construction, or have reached a final investment decision by 2030 are set to increase more than fivefold from 2024 levels to more than 4 million tonnes per year. An additional 6 million tonnes per year also has strong potential to become operational by 2030 if effective policies to ensure demand are implemented." This robust growth rate bodes well for hydrogen stocks.
Investment considerations for hydrogen stocks
Hydrogen has enormous long-term potential, helping decarbonize heavy industry, replace natural gas in some applications, and store renewable energy. If the technology scales, it could support a multitrillion-dollar global market.
At the same time, hydrogen is still in its early stages of commercial development. Clean hydrogen remains expensive to produce, and wider adoption depends on cost reductions, infrastructure build-out, and ongoing policy support, all of which can change over time.
Because of that uncertainty, hydrogen stocks tend to carry higher risk. Many pure-play companies are unprofitable, while larger firms involved in hydrogen generate most of their revenue elsewhere. For investors, that means hydrogen may be better approached cautiously, either as a small thematic allocation, a basket of companies with different risk profiles, or through a hydrogen ETF.
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About the Author
Matt DiLallo has positions in Brookfield Asset Management. The Motley Fool has positions in and recommends Bloom Energy, Brookfield Asset Management, and Cummins. The Motley Fool recommends Linde. The Motley Fool has a disclosure policy.
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