Hydrogen stocks are publicly traded companies seeking to capitalize on the enormous potential of hydrogen. This energy source emits no greenhouse gases when burned. The only waste product is water vapor, making it a cleaner energy source than fossil fuels such as natural gas, oil, and coal. These features make it a potential future source of lower-carbon energy.
The drawback of hydrogen as a fuel source is that it's rarely found in an easily extractable form. Although hydrogen can be produced from a variety of sources, most methods emit greenhouse gases, and it has not yet been produced at the scale needed to be economically competitive with fossil fuels.
However, that could change in the coming years. Several companies are working hard to tap into the enormous promise of this potentially emission-free fuel.
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:
- Types of hydrogen: 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 using 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.
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- Similar to batteries: Hydrogen fuel cells work much like batteries, generating electricity through an electrochemical reaction. However, hydrogen fuel cells are refueled with more hydrogen rather than being recharged like a traditional battery.
- Multiple current uses: Hydrogen fuel cells already have many uses. They're found in many motorized vehicles (e.g., cars, trains, buses, maritime vessels, and trucks) and also serve as a stationary power source.
- Massive market opportunity: Hydrogen has vast potential as a replacement fuel. It could one day replace natural gas in the pipeline system to generate electricity at power plants and as a fuel source for our homes. Due to its potential, some forecasts peg the future value of the clean hydrogen market as high as $11 trillion.
- Costs: Although clean hydrogen holds great promise as a potential emissions-free fuel source, it's costly to produce. It costs as little as $1.50 per kilogram to produce hydrogen from natural gas and between $3 and $12 per kilogram to produce clean hydrogen. The U.S. Department of Energy wants to reduce the cost of clean hydrogen to $1 per kilogram over the next decade to make it a more competitive fuel source.
Best hydrogen stocks to buy in 2025
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 the possibility of hydrogen energy.
However, a handful of companies are already emerging as early leaders in the sector. Here are seven leading hydrogen companies to keep an eye on as the industry matures.
NYSE: APD
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NYSE: BP
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NASDAQ: PLUG
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It's one of the world's largest hydrogen buyers and operates a leading hydrogen refueling network in North America with more than 275 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.
The company's strategy is to build the world's first green hydrogen ecosystem. Plug Power is developing several green hydrogen production plants, which it expects to be operational by the end of 2028. It's also developing solutions for third-party customers.
In October 2025, Plug Power delivered its first electrolyzer for a 100-megawatt green hydrogen project at Galp's refinery in Europe. The company noted that multiple large-scale projects are progressing toward final investment decisions in 2026, positioning the company for continued growth.
NYSE: BE
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NASDAQ: LIN
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NYSE: CMI
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In October 2025, Cummins secured a deal to test one of its prototype hydrogen-powered internal combustion engines in a model intercity bus made by Turkish-Japanese auto company Anadolu Isuzu. This engine performs as well as a natural gas engine with significantly lower emissions.
7. FuelCell Energy
FuelCell Energy is a global leader in delivering distributed baseload energy (energy produced on-site to provide steady power to a building). The company's proprietary fuel cell technology features carbonate fuel cells (those powered by natural gas and biofuels) and hydrogen fuel cells. The company also makes carbon recovery and carbon capture systems.
The company is working on advancing a large-scale hydrogen production system using its proprietary solid oxide electrolyzer cell. These modular systems could provide baseload power to large-scale manufacturing plants and data centers.
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 has the potential to grow into a multitrillion-dollar global market in the coming decades, which could fuel strong gains for top hydrogen stocks.
- Cleaner: Hydrogen (green hydrogen and blue hydrogen paired with CCS) is a cleaner fuel source compared to oil and natural gas, so investing in the sector can help support the environment.
On the other hand, some risks of investing in hydrogen stocks include:
- Market challenges: The hydrogen market can be very challenging due to the volatility of hydrogen 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 their weaker balance sheets and lack of profitability.
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Investment considerations for hydrogen stocks
Hydrogen energy has enormous potential. The emissions-free fuel could help decarbonize heavy industry, replace natural gas, and store renewable energy, paving the way for a truly net-zero world. It represents a multitrillion-dollar market opportunity.
However, hydrogen is still developing as a commercially viable fuel source. The industry needs to scale up and reduce costs to become competitive with fossil fuels and other emerging technologies, such as battery storage. The industry also relies on government support in the form of loan guarantees and other tax incentives, which can change based on the outcome of elections.
Given these factors, investors should evaluate whether they can handle the risks associated with investing in hydrogen stocks. Many pure-play hydrogen companies are unprofitable, making them riskier.
Meanwhile, other larger companies involved in the sector make most of their money elsewhere. Investors might want to watch the sector from the sidelines or invest in hydrogen by taking a basket approach (buying several different hydrogen stocks with varying risk profiles).
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