5 Hydrogen Stocks to Watch

Hydrogen is an energy source that 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.

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. Furthermore, 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.

How to invest

What to know about investing in hydrogen

There are several ways to produce hydrogen. Some methods produce carbon dioxide as a byproduct. For example, the industry describes hydrogen obtained from burning natural gas as "blue hydrogen." Using this form of hydrogen requires carbon capture and storage (CCS) to sequester the associated carbon dioxide underground to eliminate greenhouse gas emissions.

Another method uses renewable energy to power an electrolyzer that splits hydrogen from water molecules. This process produces "green hydrogen," which results in no carbon emissions. Green and blue are two of the many colors used to classify hydrogen by its production method and emissions profile.

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. We could use hydrogen fuel cells for motorized vehicles (e.g., cars, trains, buses, maritime vessels, and trucks) and as a stationary power source.

Some advocates contend that, with some modifications, hydrogen might eventually replace natural gas in the pipeline system. It could then be used in power plants to generate electricity and as a fuel source for our homes. Because of its potential, some forecasts peg the future value of the clean hydrogen market as high as $11 trillion.

Although clean hydrogen holds great promise as a potential emissions-free fuel source, it's costly to produce. It costs about $1.50 per kilogram to produce hydrogen from natural gas and $5 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 stocks

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 five leading hydrogen companies to keep an eye on as the industry matures.

Here's a closer look at some of the best hydrogen stocks to buy as the sector starts taking center stage in the coming years.

1. Air Products

1. Air Products

Air Products (APD -0.1%) is a global leader in supplying industrial gases and liquefied natural gas (LNG) processing technology and equipment. It's also one of the world's largest suppliers of merchant hydrogen and a leader in hydrogen fuel infrastructure. It has more than 100 hydrogen plants with the capacity to produce 7 million kilograms of fuel each day.

Air Products aspires to be a leader in providing solutions to the world's energy and environmental challenges through gasification, carbon capture, and clean hydrogen. It has several major hydrogen projects underway that it expects to complete in the coming years.

For example, it's investing $4.5 billion to build the world's largest blue hydrogen facility in Louisiana. When it comes online, the project is projected to capture and permanently store more than 5 million metric tons of carbon dioxide per year. This project is one of several that are under development as part of its multibillion-dollar backlog of hydrogen and energy transition projects.

However, despite its leadership in hydrogen, Air Products has run into issues expanding its business. The company noted in its first-quarter earnings report in May 2025 that about $5 billion of its capital projects are underperforming in their objectives, which includes three hydrogen projects.

The company also canceled three other projects in early 2025, including its proposed $500 million Massena green hydrogen project in upstate New York, due to regulatory and market changes. Despite those issues, the company remains committed to continuing its investment in hydrogen.

2. BP

2. BP

BP (BP -1.79%) is a global oil and gas producer with grand lower-carbon energy ambitions. It set a goal to be a net-zero company by 2050 or earlier. Hydrogen is an aspect of its strategy. BP intends to grow its hydrogen business by investing in five to seven hydrogen and CCS projects worldwide.

For example, the company partnered with Iberdrola (IBDRY 0.11%) to build a 25-megawatt green hydrogen project at its Castellon refinery. It expects the project to be operational in the second half of 2026.

Meanwhile, the company selected Cummins (CMI 0.91%) to supply a 100-megawatt proton exchange membrane electrolyzer for its largest project (Lingen) in Germany, which could produce as much as 11,000 tons of green hydrogen annually once commissioned in 2027.

The company is also planning to build H2Teesside, one of the largest blue hydrogen facilities in the U.K. However, BP did cancel its HyGreen Teesside project, its first planned green hydrogen project in the U.K.

3. Plug Power

3. Plug Power

Plug Power (PLUG -2.21%) 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 69,000 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 250 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.

Those growth projects, combined with Plug's Project Quantum Leap cost-cutting initiatives, position the company for improving cash flows and put it on the path toward profitability. Plug Power also sold stock to raise $280 million in cash in March 2025 to strengthen its financial position. In addition, it signed a $525 million secured credit facility with Yorkville Advisors in late April to bolster its liquidity.

The company also reported improving first-quarter results in early May 2025. Its revenue rose from $120.3 million to $133.7 million, while its cash burn rate slowed from $288.3 million in net cash used to $153.1 million.

CEO Andy Marsh commented in the earnings press release: "With new capacity online in Louisiana, accelerating adoption of our GenEco electrolyzers, and improved cash flow discipline, Plug is executing with focus and urgency. We're delivering real progress toward profitability and scaling our hydrogen ecosystem to meet growing global demand for clean energy."

In June 2025, Plug Power expanded its strategic collaboration with Allied Green to Uzbekistan. Plug will supply a new 2-gigawatt (GW) electrolyzer as part of a $5.5 billion green chemical production facility. The project follows a 3-GW electrolyzer deal with Allied in Australia.

4. Bloom Energy

4. Bloom Energy

Bloom Energy's (BE 23.07%) 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.

Demand for its products is growing, too. For example, in April 2025, Bloom Energy partnered with Conagra Brands (CAG -1.53%) to supply 70% to 75% of the electricity needed to power its facilities in Ohio.

It's also becoming the solution of choice for powering artificial intelligence (AI), such as data centers and businesses using the technology for productivity gains. Bloom estimates that by 2030, 27% of data center facilities expect to fully power their operations with on-site generation, providing a large market opportunity for the company's energy servers.

Meanwhile, the company enhanced its financial flexibility in May 2025. Bloom exchanged $112.8 million of 2.5% green convertible notes due in 2025 for $115.7 million of 3% green convertible notes due in 2029, extending this maturity several years into the future.

5. Linde

5. Linde

Linde (LIN 0.39%) has developed several technologies to efficiently compress and safely refuel hydrogen. It also offers technologies to lower hydrogen's carbon emissions through carbon capture and storage.

In 2023, the company agreed to invest $1.8 billion to supply clean energy to a large-scale blue ammonia plant in Texas. Linde plans to build the infrastructure needed to sequester more than 1.7 million metric tons of carbon dioxide per year, offsetting the emissions of the hydrogen supplied to the plant.

It signed a deal with oil giant ExxonMobil (XOM 0.91%) to transport and permanently store the captured carbon dioxide. The company expects the project to start in 2025.

Linde also agreed to invest more than $2 billion in building a clean energy facility to support Dow's (DOW -17.45%) Path2Zero production complex in Canada. Linde expects to complete the facility in 2028. It also signed a deal in 2024 to build a 100-megawatt renewable hydrogen plant for Shell (SHEL -0.52%) in Germany, which it expects will begin commercial operations in 2027.

In June 2025, Linde signed a long-term agreement to supply industrial gases to a low-carbon ammonia facility in Louisiana. The new $400 million on-site facility will complement the company's existing hydrogen and syngas infrastructure in the region.

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Investment considerations

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 more risky.

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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