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In this article, we discuss 10 best hydrogen and fuel cell stocks to buy in 2022. If you want to read about some more hydrogen and fuel cell stocks, go directly to 5 Best Hydrogen and Fuel Cell Stocks to Buy in 2022.
The hydrogen and fuel cell market has come under increased media spotlight in the past few years as policymakers around the globe use energy transition as an important stepping stone on the road to zero emissions. Hydrogen-powered battery packs or fuel cells, which produce electricity and emit water and heat, are starting to dominate discussions around possible alternatives to fossil fuels. According to a report by research firm Fortune Business Insights, the global hydrogen generation market will reach $220 billion in value by 2028.
This represents a compound annual growth rate of 5.6% for the hydrogen sector that was valued at around $150 billion in 2021. Some of the best hydrogen and fuel cell stocks that investors might want to consider profiting from this boom include Linde plc (NYSE:LIN), Shell plc (NYSE:SHEL), and DuPont de Nemours, Inc. (NYSE:DD). Some of the advantages that hydrogen tech offers over other green power sources are that fuel cells can use a wide range of fuels and feedstocks and can provide power for both large and small systems.
Hydrogen and fuel cell companies around the world are investing heavily in research and development to improve the durability of the new technology. The United States Department of Energy has set ultimate targets for fuel cell system lifetime under realistic operating conditions at 8,000 hours for light-duty vehicles, 30,000 hours for heavy-duty trucks, and 80,000 hours for distributed power systems. There is still a lot of work to be done to make the technology more mainstream around the globe.
For example, automakers have struggled to convince consumers of the potential of hydrogen-powered vehicles. However, the trucking industry is rapidly embracing the new technology. Andreas Gorbach, the technical chief of Daimler Trucks, said at IAA Transportation 2022 that even though no battery chemistry will ever outperform how much energy engineers can store with hydrogen, there were still major obstacles to overcome before hydrogen fuel cell trucks could start to replace diesel vehicles. He reiterated:
“If you take the elements with the biggest difference in electrochemical that gives you the highest energy, the highest voltage and the highest potential energy density cell, you would never come even close to the hydrogen. There are not elements that can compete with hydrogen.”
Our Methodology
The companies that operate in the hydrogen and fuel cell sectors were selected for the list. In order to provide readers with some context for their investment choices, the business fundamentals and analyst ratings for the stocks are also discussed. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.
Photo by Tommy Krombacher on Unsplash
Best Hydrogen and Fuel Cell Stocks to Buy in 2022
10. Fusion Fuel Green PLC (NASDAQ:HTOO)
Number of Hedge Fund Holders: 4
Fusion Fuel Green PLC (NASDAQ:HTOO) focuses on the production of hydrogen in Portugal, Southern Europe, and Morocco. It is one of the top hydrogen stocks to invest in. Fusion Fuel Green PLC (NASDAQ:HTOO) recently entered into a technology sales pact with KEME Energy to supply its solar-to-hydrogen system for a 1.22 MW green hydrogen project located in Sines, Portugal. Under the €5 million contract, Fusion Fuel Green PLC (NASDAQ:HTOO) will supply its solar-to-hydrogen systems for a 3.2 MW green hydrogen project located in Andalucía, Spain.
On September 22, RBC Capital analyst Erwan Kerouredan initiated coverage of Fusion Fuel Green PLC (NASDAQ:HTOO) stock with a Sector Perform rating and a $7 price target, highlighting that green hydrogen demand is expected to grow substantially in the next decade and the company's integrated product offering and strategic location near cheap renewable power and green hydrogen demand could make for a compelling investment case.
At the end of the second quarter of 2022, 4 hedge funds in the database of Insider Monkey held stakes worth $15 million in Fusion Fuel Green PLC (NASDAQ:HTOO), compared to 4 in the previous quarter worth $20.9 million.
Just like Linde plc (NYSE:LIN), Shell plc (NYSE:SHEL), and DuPont de Nemours, Inc. (NYSE:DD), Fusion Fuel Green PLC (NASDAQ:HTOO) is one of the best hydrogen stocks to buy according to hedge funds.
9. Westport Fuel Systems Inc. (NASDAQ:WPRT)
Number of Hedge Fund Holders: 11
Westport Fuel Systems Inc. (NASDAQ:WPRT) engages in the engineering, manufacturing, and supplying alternative fuel systems and components for use in transportation applications worldwide. It is one of the best hydrogen stocks to invest in. Westport Fuel Systems Inc. (NASDAQ:WPRT) shares have jumped recently after the company announced that it was awarded a program to develop and supply liquefied petroleum gas systems for Euro 6 vehicle applications for an unnamed global original equipment manufacturer. Westport Fuel Systems Inc. (NASDAQ:WPRT) is also developing fuel systems for future regulations, including proposed Euro 7 standards.
On August 8, Westport Fuel Systems Inc. (NASDAQ:WPRT) posted earnings for the second quarter of 2022, reporting a revenue of $80 million, up more than 1% compared to the revenue over the same period last year and beating estimates by $3.45 million.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in Westport Fuel Systems Inc. (NASDAQ:WPRT), with 2.6 million shares worth more than $2.7 billion.
8. Ballard Power Systems Inc. (NASDAQ:BLDP)
Number of Hedge Fund Holders: 12
Ballard Power Systems Inc. (NASDAQ:BLDP) provides atmospheric gasses, process and specialty gasses, equipment, and services worldwide. It is one of the premier hydrogen stocks to invest in. Ballard Power Systems Inc. (NASDAQ:BLDP) recently announced plans to establish a new China headquarters, R&D center, and membrane electrode assembly (MEA) manufacturing facility. The company will spend $130 million over the next three years to establish its new site at the Jiading Hydrogen Port in Shanghai.
On October 04, Citi analyst PJ Juvekar kept a Neutral rating on Ballard Power Systems Inc. (NASDAQ:BLDP) stock and lowered the price target to $7.50 from $10, denoting that with rising rates across the globe, certain end markets like construction and housing are slowing down, while others like auto manufacturing and aerospace now seem closer to a trough.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in Ballard Power Systems Inc. (NASDAQ:BLDP), with 3.35 million shares worth more than $21 million.
At the end of the second quarter of 2022, 12 hedge funds in the database of Insider Monkey held stakes worth $45 million in Ballard Power Systems Inc. (NASDAQ:BLDP), compared to 15 in the preceding quarter worth $68 million.
7. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 24
Bloom Energy Corporation (NYSE:BE) designs, manufactures, sells, and installs solid-oxide fuel cell systems for on-site power generation in the United States and internationally. It is one of the premier hydrogen stocks to invest in. Bloom Energy Corporation (NYSE:BE) recently priced an underwritten public offering of 13 million shares of Class A common stock at a public offering price of $26.00 per share for expected gross proceeds of $338 million.
On August 25, Bank of America analyst Julien Dumoulin-Smith resumed coverage of Bloom Energy Corporation (NYSE:BE) stock with a Buy rating with a price target of $34, identifying that price target was unchanged following the 15 million share equity raise and arguing that many opportunities were not reflected in the current share price.
Among the hedge funds being tracked by Insider Monkey, Minneapolis-based investment firm Whitebox Advisors is a leading shareholder in Bloom Energy Corporation (NYSE:BE), with 35.7 million shares worth more than $43.9 billion.
At the end of the second quarter of 2022, 24 hedge funds in the database of Insider Monkey held stakes worth $73 million in Bloom Energy Corporation (NYSE:BE), compared to 29 in the preceding quarter worth $124 million.
6. Plug Power Inc. (NASDAQ:PLUG)
Number of Hedge Fund Holders: 26
Plug Power Inc. (NASDAQ:PLUG) delivers end-to-end clean hydrogen and zero-emissions fuel cell solutions for various sectors. It is one of the most prominent hydrogen stocks to invest in. Plug Power Inc. (NASDAQ:PLUG) shares have risen after the firm agreed to supply liquid green hydrogen to Amazon starting in 2025 to help decarbonize the latter's operations. As part of the deal, Plug Power Inc. (NASDAQ:PLUG) granted Amazon a warrant to acquire up to 16 million common shares, with an exercise price for the first 9 million warrant shares of $22.98 per share.
On October 04, Citi analyst P.J. Juvekar kept a Buy rating on Plug Power Inc. (NASDAQ:PLUG) stock and lowered the price target to $28 from $36, underlining that Plug Power is bringing on 70 TPD of green hydrogen plants by the end of this year, with a target of 500 TPD by 2025.
At the end of the second quarter of 2022, 26 hedge funds in the database of Insider Monkey held stakes worth $259 million in Plug Power Inc. (NASDAQ:PLUG), compared to 33 in the preceding quarter worth $509.8 million.
In addition to Linde plc (NYSE:LIN), Shell plc (NYSE:SHEL), and DuPont de Nemours, Inc. (NYSE:DD), Plug Power Inc. (NASDAQ:PLUG) is one of the best hydrogen stocks to buy according to hedge funds.
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Disclosure. None. 10 Best Hydrogen and Fuel Cell Stocks to Buy in 2022 is originally published on Insider Monkey.
