NHydrogen fuel cells (HFCs) are a (not so recent) discovery that has the power to dramatically change the energy industry. In particular, they are used to power eco-friendly automobiles. These fuel cells use electrochemical technology to combine hydrogen and oxygen in a chemical process which creates electricity and heat.
What’s the most incredible part of this? The only byproduct of this whole process is water, so it doesn’t harm the environment. While the actual process is a bit more technical than we’ve described, there are a few important takeaways. Hydrogen fuel cell stocks are a great investment moving forward, and we’ve rounded up some our favorites.
Fuel Cell History and Capability
Unlike normal batteries, fuel cells don’t store power for a limited amount of time. They generate energy anytime hydrogen is present. Luckily, hydrogen is the simplest and most common element in the universe. While there are other renewable energy sources like solar and wind, they only work if the weather is sunny or windy.
Because hydrogen is much more accessible, it’s become groundbreaking green technology. It also has the added benefit of no harmful byproducts. Hydrogen energy has a wide variety of applications, most notably in transportation. They are also used to provide backup power to cell towers, factories, and more.
Fuel cells were actually invented in 1839 but were developed much further in the 1950s. NASA and the Russian Space Program used fuel cells to power spacecraft starting in the 1960s. Today, some of the world’s largest companies use fuel cells to create green power. As the world scrambles to slow the size of our growing eco-footprint, hydrogen-powered technology could be a game-changing solution. This article covers some of the best hydrogen fuel cell stocks on the market today to harness this incredible technology.
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Best Hydrogen Fuel Cell Stocks
FuelCell Energy Inc (NASDAQ:FCEL)
Fuelcell Energy is a company that manufactures and operates fuel cell power plants. Specifically, FuelCell Energy makes SureSource HFC power plants. These plants create hydrogen that’s suitable for transportation and industrial applications. Notably, the SureSource power plants are compliant with the State of California Low Carbon Fuel Standard, and are also considered carbon-negative by the California Air Resources Board.
In 2020, FuelCell Energy received an $8 million funding award from the US Department of Energy. These funds supported the design and creation of the company’s SureSource power plants.
FuelCell was a penny stock for almost 2 years and has just recently begun to grow again. It’s trading for $23.18 per share today. Their $7.41 billion market cap and impressive market growth since November of 2020 could mean good news for investors. It should be noted that FuelCell traded for as much as $6000 a share in the early 2000s.
Bloom Energy Corp (NYSE:BE)
Bloom Energy is a California-based company manufacturing solid oxide fuel cells that produce electricity on-site. Founded in 2001, Bloom Energy came to prominence in 2010 and raised more than $1 billion in venture capital before its IPO in 2018. The company focuses on converting conventional energy plants to zero-carbon emission plants for its clients. Since the government finds their services very valuable, Bloom Energy is subsidized by federal green incentives programs.
With a market cap of nearly $7 billion, Bloom Energy has installed over 300 megawatts worth of fuel cells. Since March 2020, Bloom shares have grown 870% on the market. This is the best the stock has done since its IPO. Bloom has huge potential for growth as the world moves to eco-friendly energy solutions.
Plug Power Inc (NASDAQ:PLUG)
Plug Power is an HFC development company based in New York. Their cells replace conventional batteries in electric-powered vehicles and other equipment. Plug Power developed an incorporated hydrogen storage system that allows fuel cells to recharge in a matter of minutes, rather than the several hours that traditional batteries need. The company’s system also integrates fuel cells produced by both Plug Power and Ballard Power Systems.
2020 has lead to a huge surge in share prices for Plug Power. The company has seen a several hundred percent increases in its market trade value. As a $34.25 billion market cap company, Plug Power will likely continue to see great growth. They recently developed a partnership with automaker Renault to develop commercial vehicles that use electric fuel cells.
Ballard Power Systems Inc (NASDAQ:BDLP)
Ballard Power Systems creates proton exchange membrane fuel cell products. Some of Ballard Power Systems’ products include bus & tram applications, material handling, portable power, and engineered services. Ballard Power Systems also makes hydrogen fuel cells for automobiles. The company continues to score new deals with international companies looking to benefit from their innovative technology. Some of these partnerships include companies like Audi, which has a deal running through at least 2022.
Ballard has a market capitalization of $10.52 billion. The company’s market price has been on a steady incline since the beginning of 2019. In fact, they were barely even affected by the COVID-19 market downturn in March of 2020. They are now trading at their highest price since 2002!
Nikola Corporation (NASDAQ:NKLA)
Nikola has produced a number of zero-emission vehicles since 2016. The company became most famous for its introduction of the Nikola-One hydrogen-powered truck. Based in Arizona, Nikola recently entered an agreement with Arizona Public Service Company for the development of hydrogen-based fuel solutions in the transportation sector. The company has struggled with a few controversies in recent months, which has reflected in its market performance.
That said, the company is off to a great start on the market in 2021. Considering the company’s $9.85 billion market cap, we can’t be surprised. Their technology will no doubt become mainstream in the near future.
Top Hydrogen Fuel Cell Stocks
Linde PLC (NYSE:LIN)
Linde has a unique involvement in the HFC space. The Ireland-based company manufactures and sells atmospheric gases. They are also the world’s largest industrial gas company by market share and revenue. Their gasses include hydrogen, oxygen, nitrogen, helium, specialty gases, and more. Hydrogen is one of the main market drivers for the company. They have over 160 hydrogen stations for fueling, spread throughout the globe. The company also has plans to create the very first hydrogen refueling station for passenger trains in Germany.
Linde is part of a special group called the Hydrogen Council. This council is a devoted group of companies investing in hydrogen vehicles. These vehicles are expected to compete with the existing electric car market. The company has also invested in wind powered-plants that convert water into hydrogen.
Linde saw it’s peak share price in early January of 2021 at $270 per share before taking a slight downturn. This may suggest undervaluation to buyers. Unlike many of the other companies on this list, Linde’s contributions to the hydrogen economy are much more diverse. Not only are they involved in the supply of essential natural gases, but they also have their foot in the engineering, construction, and procurement markets.
Air Products and Chemicals Inc (NYSE:APD)
Similar to Linde, Air Products and Chemicals Inc sells gases and chemicals for industrial use. They were one of the first companies to build a hydrogen refuel station in 1993. Headquartered in Pennsylvania, APD serves a wide variety of customer bases. These include customers in the energy, healthcare, industrial, food, and technology markets. APD’s hydrogen sales will be integral to fuel cell technology in the months and years to come.
APD saw its highest-ever market performance in November of 2020. Since then, they’ve trended slightly downward and trade for $269.68 per share today. The company saw a great recovery after its drop in March of 2020. Their market cap of $59.62 billion also means that they’ll likely continue to do well, especially since they are one of the largest gas and chemical suppliers on the market.
Cummins Inc. (NYSE:CMI)
Cummins is an American multinational design and manufacturing company for multiple automobile parts. These parts include fuel systems, filtration, engines, air handling, controls, and more. Headquartered in Indiana, Cummins sells their products in a network of over 190 countries and territories with approximately 6,000 dealers. In November of 2020, Cummins entered a partnership with Navistar International (NAV) to develop a hydrogen-powered class 8 truck. Additionally, the project will be partially funded by the Energy Efficiency and Renewable Energy portion of the US Department of Energy Office.
Cummins seems to reach new market highs every day, and many experts think they may currently be overvalued. With a market cap of $36.53 billion, they’ve had some pretty significant market traction. Cummins trades at $239 per share today after steady growth over the last three years. Investors should watch for a price dip and swoop in for the buy.
Hydrogen Penny Stocks
SunHydrogen Inc (OTCMKTS:HYSR)
SunHydrogen is a penny stock in the renewable energy space. The company focuses on producing solar-powered nanoparticle systems to mimic photosynthesis, which separates hydrogen from water. The purpose of this hydrogen production is for use in fuel cells. A first-generation product is under manufacturing processes. The company continues to work on a lower-cost second-generation product for more widespread use.
SunHydrogen has seen awesome growth from November of 2020 onward. This technology could revolutionize the way that we see and interact with renewable energy sources like the sun. With solar-powered sources of hydrogen, our cars could run not only on solar power, but also on the fuel cells that get hydrogen from the solar panels.
Should You Buy Hydrogen Fuel Cell Stocks?
Some investors are skeptical of fuel cells, worrying that they are just another passing trend. Many speculate that since they were part of the last tech bubble, they will be once again. There’s just one difference: the world urgently needs eco-friendly energy sources. The earth is now in a race against time as our population is exponentially increasing. Technology like hydrogen fuel cells can help us protect the planet before it is too late. As a result, regulatory bodies are providing subsidies for eco-friendly technology.
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Hydrogen Fuel Cell Stocks: Final Thoughts
Why not invest in a technology that will create a brighter future for your children and the many generations to come? Many people had the same skeptical nature about Tesla at first, and look where they’re at now. The time for large-scale renewable energy is long overdue, and these companies are a great investment for those that understand the true impact of green energy.