5 Hydrogen Stocks that are leading the clean energy race in 2022

  • Geopolitics and environmental concerns are driving green energy adoption
  • Various green hydrogen stocks have spiked in recent times as a result, with several leading renewable energy companies launching groundbreaking new projects
  • Defiance’s HDRO ETF gives diversified yet targeted exposure to some of the leading green hydrogen stocks

As Russia’s invasion of Ukraine continues to compromise fossil fuel supplies, and climate issues such as CO2 emissions persist as a global concern, the push for renewable energy sources is accelerating.

The International Energy Agency (IEA) has proposed a 10-step plan to reduce the reliance that Europe has placed on Russian oil and gas; a strategy that rests on the continent’s ability to transition from fossil fuels to green energy sources.1 This plan, together with government initiatives across the globe, has created a promising opportunity for growth for clean energy companies, particularly hydrogen stocks.

Here are five green hydrogen stocks that are at the forefront of the race for clean energy solutions.

Plug Power

After gaining 15.6% in February,2 Plug Power is one of the hydrogen fuel cell stocks that is positioning itself to capitalize on the growing demand for renewable energy amid the Russia-Ukraine crisis.3

The fuel cell company entered into a deal to supply 10 tons of green energy per day to natural gas and hydrogen platform Certarus USA Ltd. This agreement is aimed at developing the infrastructure needed to fuel green energy adoption across North America.4

Plug Power agreed to supply its 125kW ProGen fuel cell system to Edison Motors, an electric vehicle manufacturer that will use these fuel cells to power SMART 110F electric buses. These buses are expected to be sold in Korea and are expected to assist Plug Power to expand its footprint on the Asian market.5

In an effort to expand its own production capacity, Plug Power acquired engineering equipment supplier Joule Processing LLC; a deal which was followed by a collaboration agreement with Atlas Copco Mafi-Trench Company LLC with the aim to boost its production of liquified hydrogen.6

This array of ongoing projects has instilled much confidence in the company going forward, with Plug Power expected to increase its revenue by 80% in 2022.7

Bloom Energy

This solid oxide fuel cell producer rallied 66% in the month of February, making it one of the standout hydrogen power stocks as of late.8

NTPC Limited, India’s largest energy conglomerate under the jurisdiction of the Ministry of Power, has turned to Bloom Energy’s electrolyzer and hydrogen-powered fuel cell technology for the construction of India’s green hydrogen microgrid. Bloom Energy’s sustainable technology will be used to power NTPC’s Guest House, which is used as accommodation for the company’s employees and guests.9

Bloom Energy has also pioneered sustainable energy in the maritime industry. In partnership with Chantiers de l’Atlantique and the cruise division of MSC Group, Bloom Energy is developing the world’s first solid oxide fuel-cell powered cruise liner. 10

Southern California Gas Company (SoCalGas), the largest gas distribution utility in the United States, has joined Bloom Energy in launching a project aimed at helping California reach carbon neutrality. The project, set to be launched on the campus of the California Institute of Technology, will see the companies work together to generate and blend hydrogen into Caltech’s natural gas infrastructure.11

Bloom Energy was named Emerging Technology of the Year at the S&P Global Platts Global Energy Awards, with its electrolyzer being recognized as an “inventive and efficient” method of hydrogen production.12

Nel ASA

This Norwegian energy company is tapping into the rising demand for renewable energy sources amid the Russian invasion of Ukraine. According to CEO Jon André Løkke, the company will increase its electrolyser production capacity in order to meet the demands of the European Union’s REPowerEU communication, which seeks to make Europe independent from Russian fossil fuels before 2030.13

Some of the major European deals that Nel ASA has closed include an EUR 11 million purchase order for its 20MW alkaline water electrolyzer from Swedish engineering steel manufacturer Ovako14 as well as the purchase of its 5MW alkaline water electrolyzer from SGN, the first-ever 100% hydrogen-powered home heating network on the east coast of Scotland.15

Nel ASA also has a foothold in the North American market, having been awarded a contract to supply containerized electrolyzer and hydrogen refueling equipment to a leading United States power and gas utility. The order, which is worth approximately $5 million, will see the Norwegian company’s equipment being used at a power generating site in the U.S.16

Ballard Power Systems

With the Russia-Ukraine conflict putting fossil fuel security in the balance, Ballard was one of the hydrogen stocks that spiked as the world began to turn to renewable energy as a potential solution. This fuel cell company’s stock rose by 13.7% at the conclusion of February.17

The Canadian company is focused on developing a stronghold in India, signing a non-binding Memorandum of Understanding with the Adani Group aimed at exploring the commercialization of fuel cells in mobility and industrial applications across India.18

Ballard has also proven to be a frontline innovator in the realm of hydrogen-powered energy, partnering with Chart Industries to test a fuel cell powered by liquid hydrogen. The test, which proved to be successful, demonstrated that Ballard fuel cells and Chart HLH2 vehicle fuel systems could be partnered together in an effort to power heavy-duty vehicles.19

Another area where Ballard is proving to be a clean energy pioneer is the maritime industry. Together with global technology company ABB, Ballard received a groundbreaking approval in principle from leading classification society DNV for a fuel cell concept designed to power ships.20

McPhy

French zero-carbon hydrogen production specialist McPhy signed a contract with Eiffage Énergie Systèmes for a carbon-free mobility project set to be conducted in Belfort, France. The project is expected to equip a hydrogen production and distribution site in Belfort with the capabilities to supply low-carbon hydrogen to a fleet of 7 buses operated by the region’s transport authority.21

Another way that the French company is making inroads in the mobility sector is through its strategic partnership with hydrogen taxi company Hype. The partnership is expected to assist Hype in achieving its goal of delivering 10,000 zero-emission cabs and 20 high-capacity stations in Paris by the time of the 2024 Olympic Games as well as expanding operations to other countries across Europe, including Belgium, Italy, and Spain.22

McPhy was also announced as the preferred supplier of a 100-MW electrolysis plant for the GreenH2Atlantic green hydrogen production project in Portugal. Through the supply of its Augmented McLyzer electrolysis system, McPhy will provide the project with the ability to convert electricity into more than 41 tonnes of hydrogen per day.23

The hydrogen push

The current geopolitical climate has resulted in a global push towards clean energy. As a result, investors may consider placing their confidence in hydrogen stocks in the hopes that the demand for such energy sources persists.

While selecting the best hydrogen stocks is an impossible task, exploring a hydrogen stock ETF may prove to be a viable alternative. Consider a hydrogen ETF such as the one provided by Defiance ETFs in order to diversify your exposure while investing in a range of leading companies in the clean energy space. See here for a list of the full holdings of Defiance’s HDRO ETF.


1 “IEA’s 10-Step Plan For Europe: Diversified Gas Imports And Clean Energy”, 04 March 2022, https://oilprice.com/Alternative-Energy/Renewable-Energy/IEAs-10-Step-Plan-For-Europe-Diversified-Gas-Imports-And-Clean-Energy.html

2 “Why Plug Power Stock Surged 15.6% in February”, 08 March 2022, https://www.fool.com/investing/2022/03/08/why-plug-power-stock-surged-156-in-february/

3 “Plug Power: Energy Crisis Puts Green Hydrogen in the Spotlight”, 08 March 2022, https://finance.yahoo.com/news/plug-power-energy-crisis-puts-201821774.html

4 “Plug Power strikes long-term green H2 supply deal with Certarus”, 15 December 2021, https://renewablesnow.com/news/plug-power-strikes-long-term-green-h2-supply-deal-with-certarus-765616/

5 “Edison Motors and Plug Power Inc. Sign Agreement for Mass-Production of Hydrogen-Powered City Buses”, 15 December 2021, https://www.globenewswire.com/news-release/2021/12/15/2353154/9619/en/Edison-Motors-and-Plug-Power-Inc-Sign-Agreement-for-Mass-Production-of-Hydrogen-Powered-City-Buses.html

6 “PLUG POWER ACQUIRES JOULE PROCESSING, ENTERS STRATEGIC COLLABORATION WITH ATLAS COPCO GAS AND PROCESS AND FIVES TO EXPAND OFFERINGS FOR GLOBAL HYDROGEN LIQUEFACTION MARKET”, 17 February 2022, https://www.ir.plugpower.com/Press-Releases/Press-Release-Details/2022/Plug-Power-Acquires-Joule-Processing-Enters-Strategic-Collaboration-with-Atlas-Copco-Gas-and-Process-and-Fives-to-Expand-Offerings-for-Global-Hydrogen-Liquefaction-Market/default.aspx

7 “Why Plug Power Stock Surged 15.6% in February”, 08 March 2022, https://www.fool.com/investing/2022/03/08/why-plug-power-stock-surged-156-in-february/

8 “Bloom Energy Stock Rallied 66% Last Month. Are More Gains In The Offing?”, 11 March 2022, https://www.forbes.com/sites/greatspeculations/2022/03/11/bloom-energy-stock-rallied-66-last-month-are-more-gains-in-the-offing/?sh=59d5ee1b11ad

9 “Bloom Energy to Power India’s First Green Hydrogen Microgrid”, 20 December 2021, https://www.bloomenergy.com/news/bloom-energy-to-power-indias-first-green-hydrogen-microgrid/

10 “Bloom Energy, Chantiers de l’Atlantique, and MSC Chart a Course for Cruise Ships Powered by Clean Energy”, 16 December 2021, https://www.yahoo.com/now/bloom-energy-chantiers-l-atlantique-125800492.html

11 “SoCalGas and Bloom Energy Showcase Technology to Power Hydrogen Economy with Gas Blending Project”, 14 December 2021, https://www.prnewswire.com/news-releases/socalgas-and-bloom-energy-showcase-technology-to-power-hydrogen-economy-with-gas-blending-project-301444291.html

12 “Bloom Energy Wins S&P Global Platts Global Energy Award”, 13 December 2021, https://www.bloomenergy.com/news/bloom-energy-wins-sp-global-platts-global-energy-award/

13 “Nel ASA: Ready to step up production capacity”, 09 March 2022, https://www.prnewswire.co.uk/news-releases/nel-asa-ready-to-step-up-production-capacity-826650679.html

14 “Nel ASA: Receives purchase order for 20MW alkaline electrolyser from Ovako”, 25 November 2021, https://www.prnewswire.com/news-releases/nel-asa-receives-purchase-order-for-20mw-alkaline-electrolyser-from-ovako-301432037.html

15 “Nel ASA: Receives purchase order for 5MW alkaline electrolyser”, 24 September 2021, https://nelhydrogen.com/press-release/nel-asa-receives-purchase-order-for-5mw-alkaline-electrolyser/

16 “Nel ASA: Receives contract for containerized electrolyzer and hydrogen refueling equipment”, 04 February 2022, https://mb.cision.com/Main/115/3498843/1529947.pdf

17 “Why Shares of Plug Power, Ballard Power Systems, and Bloom Energy Are Soaring Today”, 28 February 2022, https://www.fool.com/investing/2022/02/28/why-shares-of-plug-power-ballard-power-systems-and/

18 “Ballard announces MOU with Adani for hydrogen fuel cells in India”, 22 February 2022, https://www.prnewswire.com/news-releases/ballard-announces-mou-with-adani-for-hydrogen-fuel-cells-in-india-301487336.html

19 “Chart and Ballard Successfully Test a Fuel Cell Powered by Liquid Hydrogen”, 01 February 2022, https://www.globenewswire.com/news-release/2022/02/01/2376504/9318/en/Chart-and-Ballard-Successfully-Test-a-Fuel-Cell-Powered-by-Liquid-Hydrogen.html

20 “Ballard & ABB Receive Approval in Principle for High-Power Fuel Cell Concept to Power Ships”, 23 February 2022, https://www.ballard.com/about-ballard/newsroom/news-releases/2022/02/23/ballard-abb-receive-approval-in-principle-for-high-power-fuel-cell-concept-to-power-ships

21 “Hydrogen mobility contract with Eiffage Energie Systèmes – Clemessy”, 17 January 2022, https://mcphy.com/en/press-releases/hydrogen-mobility-contract-with-eiffage-energie-systemes-clemessy/

22 “Signature of a strategic partnership with Hype”, 14 December 2021, https://mcphy.com/en/press-releases/signature-of-a-strategic-partnership-with-hype/

23 “McPhy to supply 100-MW electrolyser for H2 consortium in Portugal”, 22 December 2022, https://renewablesnow.com/news/mcphy-to-supply-100-mw-electrolyser-for-h2-consortium-in-portugal-766747/