3 Hydrogen Stocks to Make Your ‘Get Rich’ Dreams Come True

In This Article:

Hydrogen is a clean form of renewable energy that continues to draw significant interest from investors. According to Morgan Stanley (NYSE:MS), the hydrogen economy could be an $11 trillion market between now and 2030. However, by itself, that’s not a reason to look for high potential hydrogen stocks. 

A better reason to consider hydrogen stocks as an investment opportunity is the 2022 Inflation Reduction Act. This piece of legislation is offering $370 billion of incentives for clean energy. In fact, there is a $9.5 billion line item in the bill for green hydrogen development that includes offering a 10-year tax credit of up to $3 per kilogram for green hydrogen producers. 

The reason is as old as time. The hydrogen economy holds significant promise. But it takes the combination of money and political will to make the hydrogen economy a reality. As more nations pledge billions of dollars to address climate change, it’s creating a favorable environment for investing in hydrogen stocks.  

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

And the good news for investors is that many of these stocks are priced in such a way that you can build a position for a relatively nominal amount of money. If that sounds intriguing to you, here are three high potential hydrogen stocks to consider.  

Plug Power (PLUG) 

Person holding cellphone with logo of American hydrogen fuel cell company Plug Power Inc on screen in front of web page Focus on phone display
Person holding cellphone with logo of American hydrogen fuel cell company Plug Power Inc on screen in front of web page Focus on phone display

Source: Wirestock Creators / Shutterstock.com

When considering high potential hydrogen stocks, investors will want to pay attention to companies that specialize in green hydrogen. And Plug Power (NASDAQ:PLUG) is one of the few pure play companies promoting green hydrogen.

Green hydrogen is different from grey or blue hydrogen because water is its only means of producing electricity. That’s why green hydrogen is receiving favorable treatment by the U.S. government.  

Plug Power is building “an end-to-end green hydrogen ecosystem that addresses every step of operations.” Investors frequently think about hydrogen in terms of its use in transportation (e.g. fleet trucking). But one of the key uses for hydrogen is in providing stationary power for applications such as data centers. 

To that end, in July 2022 Microsoft (NASDAQ:MSFT) partnered with Plug Power as it finished construction of a hydrogen fuel cell backup power plant. The plant will provide backup power for the company’s data centers and supports the tech giant’s goal to be carbon neutral by 2030.  

Plug Power is not yet profitable, but many analysts believe that could change next year and perhaps sooner. Once that happens, it will be unlikely that investors will be able to buy PLUG stock at its current price of just over $10 per share.