3 hydrogen stocks to buy before the market starts to soar in 2023

Source: Kaca Skokanova/

Advances in technology have driven down renewable energy costs and ushered in an era of large-scale green hydrogen production. With its incomparable energy density, hydrogen has a substantial advantage over battery electricity in terms of range, recharging and emissions. Therefore, emerging hydrogen stocks could prove to be incredibly lucrative investments in the future.

As the effects of climate change become increasingly evident, there is growing pressure to find cleaner sources of energy. Hydrogen is a clean-burning fuel that can be used in a variety of ways, from powering homes to powering vehicles.

Additionally, aaccording The Bank of America (NYSE:BAC), the hydrogen economy could potentially become an 11 trillion dollar market by 2050. The massive growth expected in this space is mainly driven by energy and transport. Additionally, with governments and companies around the world investing in hydrogen technology, the next decade could see hydrogen become a major combat force in the fight against climate change.

That said, here are three hydrogen stocks investors should consider right now.

PLUG Plug hole $15.18
BE Bloom Energy $21.47
SHEL Shell $56.82

Plug hole (PLUG)

Plug Power Hydrogen Energy Fuel Cell 3D Rendering Image

Source: Shutterstock

Plug hole (NASDAQ:PLUG) is a producer and distributor of hydrogen fuel cell solutions. The company is one of the leaders in the field and its products have been proven in various industries.

Given Plug Power’s incredible track record of growing revenue through significant investment in its future, the company is well positioned to capitalize on the growing demand for hydrogen fuel cells. As the world increasingly turns to hydrogen as a clean energy source, Plug Power can play a major role in the transition.

Plug Power has made tremendous strides in growing its business over the past year. In August, the company announced its partnership with Amazon (NASDAQ:AMZN) to supply 10,950 tons of liquid green hydrogen per year to power the tech giant’s operations. Moreover, it has partnered with another tech giant Microsoft (NASDAQ:MSFT) to provide backup power to its data centers. These deals are another feather in the company’s ceiling, opening up a dramatic new opportunity for the company in stationery, a whopping $40 billion market.

Bloom Energy (BE)

Bloom Energy logo at their headquarters in Silicon Valley

Source: various photographs /

Bloom Energy (NYSE:BE) is another clear winner in the field of renewable energy. This company continues to execute and exceed expectations and is well positioned to build momentum in the years to come.

Notably, Bloom has been remarkably resilient in a challenging supply chain environment as the company moves full steam ahead with its expansion plans.

After its recent secondary offering, Bloom now has enough cash to fund its future growth. The aim is to increase capacity to meet future growth expectations as it achieves its goal of doubling its 2021 capacity this year. Additionally, Bloom plans to foray into the European market after establishing a strong presence in South Korea and the United States.

Its business has been incredibly consistent, growing its revenue at an incredible average rate of 36% over the past five years. Once its supply chain issues ease, Bloom will likely kick into high gear and post even stronger results going forward.

Shell (SHEL)

logo on a gas station in Iceland.

Source: JuliusKielaitis /

Few oil companies have embraced the transition to renewable energy with as much heart as Shell (NYSE:SHEL). To reduce its dependence on revenues generated by fossil fuels, Shell has invested heavily in renewable energy sources. One of shell’s main areas of interest has been hydrogen technology.

Shell doesn’t just talk about these investments, it puts its money in its mouth. Recently, Shell announced a new initiative to build Europe’s largest renewable hydrogen plant. The project could effectively produce 60,000 kg of renewable hydrogen per day. This is a significant step forward for Shell and an important precedent for other major oil companies.

The process of effectively integrating hydrogen technology into its broader energy infrastructure will take a long time. In the meantime, shareholders can benefit from Shell’s high-level core business. This strong core business offers a solid forward yield of over 3.5%. Thus, an investment in Shell offers a unique, but long-term, way to play on hydrogen stocks now.

As of the date of publication, Muslim Farooque had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to publishing guidelines.

Muslim Farooque is a passionate investor and an optimist at heart. A long-time gamer and tech enthusiast, he has a particular affinity for analyzing tech stocks. Muslim holds a Bachelor of Science in Applied Accounting from Oxford Brookes University.


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