Green Hydrogen Stocks: Top Companies to Watch in 2024

The world is transforming the face of energy as it transitions toward a cleaner, more sustainable world. In this palette of alternatives, green hydrogen features as one of the technologies that promise to change the energy production and consumption landscape forever. As governments race toward zero net emissions, green hydrogen stocks have emerged as a profitable investment play.

This detailed article explores the basics of green hydrogen, its benefits, market trends, challenges, opportunities and top 10 Green Hydrogen Stocks. We’ll also highlight the most prominent green hydrogen energy stocks globally and in India and provide insights into why this sector could be the future of energy investment.

Understanding Green Hydrogen

Green hydrogen is hydrogen generated from renewable-source electricity, including wind, solar, or hydroelectric power. It splits water molecules consisting of H₂O into hydrogen, H₂, and oxygen, O₂. Because no carbon dioxide is emitted in this process, it is deemed completely clean and sustainable.

This is one essential way to cut emissions for sectors that cannot be readily decarbonized, such as heavy industries, transportation, and energy storage.

Why Green Hydrogen Matters?

With the never-ending quest to avoid an ever-increasing consumption of fossil fuels, green hydrogen must be one of the most fundamental game-changers. Here is why it matters;

1. Environmental Benefit: The production of green hydrogen does not emit any greenhouse gas, thus providing it as an environmentally friendly alternative.
2. Decarbonization: It further helps reduce emissions in industries that are difficult to electrify, such as steel, cement, and chemicals.
3. Energy Storage: It can store extra renewable sources of energy when the wind is not blowing or sunlight is not reaching on any particular part of the Earth’s surface.
4. International Commitment: With India, several countries worldwide are embracing this green fuel as part of their plan for clean energy.

What Are Green Hydrogen Stocks?

Green hydrogen stocks comprise the shares of companies that have businesses engaged in the production, storage, or usage of green hydrogen. Normally, these companies are into renewable energy, hydrogen fuel cells or building infrastructures for hydrogen production.

Green hydrogen stocks are an entry into a pretty rapidly increasing market based on a massive demand from all corners of the world for greener solutions in energy.

Green Hydrogen Stocks in India

India is fast growing in green hydrogen, as per the promise to achieve net zero carbon by 2070. The Indian Government has already launched the National Hydrogen Mission, which will make the country a world leader in the production of green hydrogen.

Key Initiatives Which Promote Green Hydrogen in India

1. National Hydrogen Mission Launched in 2021, it puts India in the leadership position of exporting green hydrogen once it is produced.
2. Investment Programs: The Indian Government had initiated investment programs for green hydrogen and associated technologies to be developed as production facilities.
3. Corporate Engagement: Indian companies, including NTPC and the Adani Group, are investing heavily in green hydrogen projects to strengthen their renewable energy capacities.

Major Players in Green Hydrogen in India

The major players in green hydrogen stocks in India are:

1. NTPC Limited: NTPC is one of India’s largest energy companies, and it has piloted projects for green hydrogen.
2. Indian Oil Corporation: IOCL is the state-owned oil company, which is investing into green hydrogen to diversify its energy mix and be less dependent on fossil-based fuels.
3. Adani Group: The Adani Group will invest $50 billion into renewable energy, and among these, green hydrogen forms a part of this deal.
4. Reliance Industries: Reliance is working under the headship of Mukesh Ambani, offering advanced electrolyzers that bring in further decreasing the cost of production for green hydrogen.

Top 10 Green Hydrogen Stocks to Watch

Those with an interest in green hydrogen may find these global companies driving innovation and scaling up production:

1. Plug Power Inc. (PLUG)

Plug Power is a company in hydrogen fuel cell systems and green hydrogen production. They partner with large companies in the development of hydrogen solutions.

2. Ballard Power Systems (BLDP)

Ballard is focused on hydrogen fuel cells for buses, trucks, and trains. This is the reason it plays a critical role in the hydrogen industry.

3. Nel ASA (NEL)

This Norwegian company gives comprehensive hydrogen generation, storage, and delivery solutions using renewable energy.

4. Air Products and Chemicals (APD)

Air Products is an industrial gas corporation that is heavily investing in green hydrogen infrastructure across the globe.

5. Siemens Energy (ENR)

Siemens Energy leads the world in renewable technologies and is significantly involved in green hydrogen projects.

6. ITM Power (ITM)

ITM Power is headquartered in the United Kingdom and mainly deals in electrolyzer technology to provide low-cost green hydrogen production.

7. Cummins Inc. (CMI)

A strong brand name, primarily an engine manufacturer with power solutions, will now enter the business of hydrogen technologies to fulfil the enormous demand for sustainable energy.

8. Orsted A/S (ORSTED)

Orsted is a leader in offshore wind energy and is exploring green hydrogen production as part of its renewable energy portfolio.

9. Linde PLC (LIN)

Linde is the world’s largest industrial gas company and is working on hydrogen production and storage technologies.

10. Reliance Industries

From India, Reliance is emerging as a major player, focusing on scaling up green hydrogen production through innovative technologies.

Why Invest in Green Hydrogen Stocks?

Investing in green hydrogen stocks has several benefits, making it an attractive choice for investors:

1. Expanding Market Potential

The global market for green hydrogen is expected to grow at a compound annual growth rate of more than 20% in the coming years. This is due to the increasing demand for clean energy and supportive government policies.

2. Diversification

Green hydrogen stocks are a great way to diversify your portfolio by including companies involved in renewable energy and advanced technologies.

3. Supportive Policies

Governments around the world are implementing subsidies and incentives to help green hydrogen gain traction. This is making it a very favorable environment for the companies in this sector.

Challenges Green Hydrogen Stocks Face

The potential is huge, but there are challenges that investors should keep in mind:

1. High Production Costs: Green hydrogen production is more expensive than traditional methods primarily because of the expense of electrolyzers.
2. Infrastructure Constraints: Building infrastructure for the storage and transportation of hydrogen is a major challenge.
3. Competition in the Market: New entrants to the market may increase competition, and this could affect the profitability of established firms.
4. Regulatory Risks: Government policies can impact the growth curve of the green hydrogen market.

Green Hydrogen Stocks in India: Promising Future

The effort of India toward green hydrogen is making an ideal investment opportunity. The National Hydrogen Mission is set to make the country raise $44 billion in investments by 2030.

Investments will eventually boost the country’s renewable energy capacity and employment generation. Indian firms such as NTPC and Adani are very well placed for this increase, making them a suitable investment opportunity for the investors.

How to Invest in Green Hydrogen Stocks?

For beginners in green hydrogen energy stocks investment, here are some steps ahead:

1. Research Companies: Understand the business models, financial health, and growth potential of companies in the green hydrogen sector.
2. Monitor Market Trends: Monitor global and domestic developments in green hydrogen, such as government policies and technological advancements.
3. Diversify your portfolio: The more diversified your green hydrogen portfolio is, the lower your risk will be.
4. Seek the Advice of Financial Experts: Seek advice from financial experts in making an informed investment decision.

Conclusion

Green hydrogen is the future of clean energy, and green hydrogen stocks present investors with the opportunity to participate in this revolutionary change. As governments and companies worldwide commit to sustainability, the demand for green hydrogen will skyrocket.

The National Hydrogen Mission in India has now been initiated to open paths for growth in this sector. At the domestic level, NTPC, Indian Oil, and Adani are to take advantage of this development, while Plug Power and Ballard Power Systems continue innovations at the global level.

If you are willing to look for investment opportunities in green hydrogen stocks, think about SMC Global Securities. SMC Global Securities, with the help of expertise and personalized services, can lead you into the dynamic and promising world of green hydrogen investments. Step out today to create a sustainable and profitable investment portfolio!

FAQs about Green Hydrogen Stocks

1. What are Green Hydrogen Stocks?

Green hydrogen stocks are those that produce, store, or utilize green hydrogen. That is a source of clean energy as it utilizes renewable energy to split water into hydrogen and oxygen.

2. Why Invest in Green Hydrogen Energy Stocks in India?

Investment in green hydrogen stocks is profitable because of the following benefits:

• Environmental Impact: Supports a cleaner and more sustainable future.
• Long-Term Growth Potential: The demand for green hydrogen is growing rapidly across the globe.
• Government Support: Many governments are offering incentives and subsidies to encourage green hydrogen.
• Diversification: It adds a unique asset class to your portfolio.

3. What are the best green hydrogen stocks to invest in?

Some of the best green hydrogen stocks to invest in include:

• Plug Power (PLUG): A leader in hydrogen fuel cell technology.
• Ballard Power Systems (BLDP) has a technological edge in fuel-cell solutions, which can be used in various applications.
• Nel ASA (NEL): They have solutions for hydrogen production, hydrogen storage, and distribution.
• Air Products and Chemicals (APD): It is an industrial gas company globally investing in green hydrogen.
• Siemens Energy (ENR): It is focused on renewable energy technologies, which include green hydrogen.

4. What are the risks of investing in green hydrogen stocks?

Although green hydrogen has much promise, there are risks:

• High Production Costs: Green hydrogen is currently more expensive than the traditional approach.
• Infrastructure Challenges: Infrastructures required for hydrogen storage and transportation are quite costly to acquire.
• Market Volatility: Being in the development stage, the prices of green hydrogen tend to fluctuate a lot.
• Technological Risks: Technical upgrades may shift the competitive edge of a few firms.

5. How do I begin green hydrogen stocks investing?

One can invest in green hydrogen stocks by following these ways:

• Demat Account Opening: It is an online account through which one can keep shares.
• Choosing Broker: It is very essential to opt for a genuine broker who can execute trades.
• Research: This encompasses the companies, the business models they are using, and the market trends.
• Diversify your portfolio: Invest in many green hydrogen stocks so as to maximize possible returns.
• Seek Professional Advice: Seek counselling from a financial advisor for a better investment.

Author: All Content is verified by SMC Global Securities.