Hydrogen stocks have effectively staked their claim as compelling additions to any future-focused investment portfolio. Hydrogen, with its green credentials, has piqued investors worldwide. According to Morgan Stanley, the burgeoning hydrogen economy could become a colossal $11 trillion market by 2030.
The 2022 Inflation Reduction Act adds to the allure of the best hydrogen stocks. Additionally, this crucial piece of legislation infuses the clean energy sector with $370 billion of incentives, reserving a whopping $9.5 billion specifically for green hydrogen development.
With global powers pledging billions to combat climate change, the climate is ripe to consider hydrogen stocks to buy. As always, the key to success lies in the convergence of opportunity, foresight, and timely action. Let’s take a closer look at three of the best hydrogen bets at this time.
Hydrogen Stocks To Buy: Bloom Energy (BE)
Bloom Energy (NYSE:BE) is effectively carving a niche at the intersection of clean energy and artificial intelligence. As a leading manufacturer of solid oxide hydrogen fuel cells, it is finding resonance in the AI sector and being lauded as a vital energy supplier for data centers. The development signals promising performance for the firm in upcoming quarters.
Bloom Energy demonstrated its mettle in recent financials, posting robust quarterly earnings. Revenue shot up to $275.2 million, marking a 37% year-over-year surge, while operating losses shrank from $65.7 million to $63.7 million. Furthermore, its flagship offering, the Bloom Energy Server, is a testament to resilient, efficient electric power, proving to be cost effective across multiple microgrid applications.
Morgan Stanley highlighted the firm’s potential as an AI player. They observe that as AI workloads become more data-intensive, the subsequent spike in demand for cleaner energy could pave the way for Bloom Energy’s ascendancy.
BP (BP)
Among traditional oil stocks, BP (NYSE:BP) distinguished itself as one of the first movers in renewable energy. Now, the firm plans to harness 10% of the hydrogen boom in its key markets by 2030. In late 2022, BP CEO Bernard Looney underscored its commitment to hydrogen as a power source for low-carbon businesses.
True, low-carbon hydrogen is poised to reduce greenhouse gas emissions significantly. Yet, production costs remain remarkably high, necessitating government support. Fortunately, with the U.S. IRA allocating billions in funding, BP is taking strides to develop a low-carbon hydrogen hub around its Indiana refinery.
The company has also pledged an additional $8 billion to boost “transition growth engines” such as hydrogen and carbon capture and storage. Looking ahead, it has set its sights on producing between 0.5 and 0.7 million tons of primarily green hydrogen annually by 2030. Therefore, BP’s green energy efforts could pay many dividends for its stellar business down the road.
Plug Power (PLUG)
Harnessing the potential of hydrogen fuel cell systems, Plug Power (NASDAQ:PLUG) stands tall in the burgeoning green energy space. As these systems pose a credible alternative to batteries, the rise in global EV adoption paints a promising picture for this innovative business.
The hydrogen sector is gaining momentum, with industry giants starting to appreciate hydrogen energy as a viable means to curb emissions. With the growing appetite for green hydrogen, Plug Power stands poised to deliver more robust results. Moreover, the company aims to churn out an impressive 2,000 tons of hydrogen per day by 2030. On top of that, major partnerships, such as those with Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN), underscore the potential upside for Plug Power, pointing to a remarkably optimistic future for the company.
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