Hydrogen power is good, clean, and fun. The oxidation of hydrogen can power everything from cars to cities, and its only waste product is water. And hydrogen itself can be extracted from a huge variety of sources, as it is the most abundant atom in the universe. Hydrogen is everywhere, and investing in hydrogen stocks means taking advantage of abundance over scarcity.
But hydrogen must still catch up with more carbon-intensive energy sources in our modern economy. It is less energy dense than oil, meaning you need more volume to get the same amount of power. And it is more prone to seeping out of pipes than natural gas. But despite these issues, hydrogen has continued to grow as a power source in America and the world. There are currently 1600 miles of hydrogen pipelines in America. And with green energy growing in demand, there could soon be much, much more.
Hydrogen power is still poised to be the future energy as nations pledge to achieve net-zero greenhouse emissions. It can not only be a transition fuel, as it can use much of the same infrastructure as natural gas, but it can also be a net-zero fuel in and of itself. Also, hydrogen as a chemical is used in various industrial processes, the demand for which will continue to grow. This is an industry you don’t want to miss out on. So here are millionaire-making hydrogen stocks to get into right now.
Air Products and Chemicals (APD)
Air Products and Chemicals (NYSE:APD) has become the world’s largest seller of hydrogen and a top hydrogen stock to buy. This company uses hydrogen not only as a power source but also as a chemical for creating several products. A good example is their Neom green hydrogen joint venture with ACWA power, using hydrogen to produce both energy and ammonia. Saudi Arabia plans for Neom to be a “city of the future” powered by 100% renewable energy. And this venture places Air Products as a prime supplier of that energy.
Air Products is a strong stock for growth and passive income. Its Q1 2023 earnings reported revenue of $3.2 billion, up from $2.9 billion, with an expected dividend rate of 2.4%. With both good growth prospects and a dividend, this is one of the best hydrogen stocks for millionaire status.
Furthermore, the Biden administration promises big money to green hydrogen companies. And because of that, air Products is set to be a major beneficiary as they are bringing online some of the largest green hydrogen plants in America alongside partners like AES (NYSE:AES).
Air Products and Chemicals currently sits as the proverbial 600-pound gorilla of the global hydrogen market. With plants and contracts around the globe, they are on course for explosive growth as governments pump more and more money into green energy. That makes them a hydrogen stock you don’t want to miss out on.
Linde PLC (LIN)
Linde PLC (NYSE:LIN) is making a big play for the future of green hydrogen. While much of the world’s hydrogen is produced from natural gas, this process releases carbon dioxide. If the carbon dioxide can be sequestered, the process is carbon neutral. But sequestering carbon dioxide is an expensive endeavor in and of itself; it is far more efficient to produce the hydrogen without producing carbon dioxide.
That is precisely what Linde plans to do as one of the leading producers of proton exchange membranes. These will produce hydrogen directly from electrolysis, emitting no greenhouse gasses. With their green hydrogen production, alongside a hefty $1.8 billion investment in hydrogen production in Texas, Linde is quickly establishing itself as one of the most prominent players in hydrogen. This makes them a definite buy for anyone investing in hydrogen stocks.
Financially, Linde is well-positioned for the road ahead. With $8.2 billion in revenue and $1.5 billion in net income in Q1 2023, they are prepared to invest heavily in the upcoming hydrogen revolution.
As a final note, Linde has eyes on using hydrogen to replace even gasoline. As a member of the Hydrogen Council, Linde has pushed for the production of hydrogen-powered cars to replace gasoline-powered ones. With the possibility of lithium shortages looming over the electric car industry, there is still room for an outside bet like hydrogen cars to supply our green transition. If that happens, Linde would again be first in line to benefit.
Plug Power (PLUG)
Plug Power (NASDAQ:PLUG) has been a volatile and sometimes heartbreaking stock for its investors. But Plug has perhaps the greatest growth potential of all hydrogen stocks for investors looking to hit the big time in hydrogen.
Part of Plug’s appeal is that it produces hydrogen by a less-traveled road. Producing hydrogen from methane creates carbon dioxide. Producing hydrogen from water is electrically intensive. But Plug Power is producing hydrogen using the waste produced by chloralkali production. As they are reusing a waste product, this lets Plug tap into a potentially very low-cost source of hydrogen.
Another part of their appeal is the promise that they will bring hydrogen power to every corner of the market that can use it. From buses to airplanes, Plug has shown a commitment to using its hydrogen anywhere it can. The company knows that this could truly be the energy source of the future. The low-carbon fuel for when wind and solar power aren’t available.
On the financial front, however, Plug does merit a word of caution. Q1 2023 revenue was 50% higher than Q1 2022, going from $141 million to $270 million. But that growth still couldn’t bring profit, and net losses grew as well from $35 million to $69 million. Plug still has $475 million in cash, so they still have time to find profit. But cautious investors may have reason to wait until they prove they can do so. Still, with such high potential in a growing market, Plug at least deserves to be on any hydrogen investor’s watch list.
On the date of publication, John Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
