5 Hydrogen Stocks to Watch in 2025

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 to 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. On top of that, it's not yet made 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 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 by generating electricity from an electrochemical reaction. However, instead of being recharged like a traditional battery, hydrogen fuel cells are refueled with more hydrogen. We could use hydrogen fuel cells to motorize 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 at as much 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 get the cost of clean hydrogen down 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 0.22%) is a world 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 in 2026, the project will capture and permanently store more than 5 million metric tons of carbon dioxide per year. This project and others under development position Air Products to remain a leading global hydrogen energy company.

2. BP

2. BP

BP (BP 1.8%) 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 a crucial aspect of its strategy. BP intends to grow its hydrogen business by investing in five to 10 projects worldwide. By 2030, it aims to produce 500,000 to 700,000 tons of low-carbon hydrogen annually.

For example, the company partnered with Iberdrola 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.

3. Plug Power

3. Plug Power

Plug Power (PLUG 12.88%) 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 it expects to be commercially operational by the end of 2028.

4. Bloom Energy

4. Bloom Energy

Bloom Energy's (BE 4.07%) mission is to make 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 it can store and eventually turn back into electricity for future use.

5. Linde

5. Linde

Linde (LIN -0.16%) 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 carbon capture 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 0.51%) 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 to build a clean energy facility to support Dow's (DOW -0.38%) Path2Zero production complex in Canada. Linde expects to complete the facility in 2028.

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Good alternative

Hydrogen is one of the most promising alternative fuels

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, like battery storage. Investors might want to watch the sector for a while to gauge which companies have the best chances of emerging as long-term winners.

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