The use of different energy sources today is already commonplace to contribute to the energy transition process. It is true that it is not a process that will happen overnight, but every step counts and contributes to the well-being of all. These three hydrogen stocks are doing amazing work and creating wonderful partnerships. It is worth analyzing their development and considering adding them to our investment options. If you are going to invest in a hydrogen stock, make sure it is one of these.
Linde (LIN)
Linde Plc (NASDAQ:LIN) is making waves as a strong contender in the industrial gases sector, especially as a promising hydrogen stock this December. Despite a slightly challenging economic outlook, its third quarter highlights reveal resilience and growth.
Sales fell 7%, but underlying sales rose 3%. Operating profit was up 15% with an impressive adjusted margin of 28.3%. Earnings per share (EPS) rose a solid 26% to $3.19, and adjusted EPS was up 17% to $3.63.
Looking ahead, Linde’s positive outlook shines brightly as they have raised their full year 2023 adjusted EPS guidance, projecting notable year-over-year growth from 14% to 15%. One of their major achievements is the long-term agreement to supply industrial gases, including hydrogen, to Indian Oil Corporation’s Panipat refinery in India.
In another impactful move, they are championing sustainability with agreements in Brazil to source more than two million megawatt hours per year of renewable energy. This aligns with its commitment to double the purchase of low-carbon energy by 2028 and reduce greenhouse gas emissions. The company’s dedication to environmental responsibility is reinforced by its estimates that its solutions help customers avoid more than double the emissions generated by their own operations.
On top of that, they are returning value to shareholders with a quarterly dividend of $1.275 per share and a new share buyback program of up to $15 billion. This not only underscores its confidence in financial strength, but also signals its commitment to rewarding shareholders. All that we discussed make this a top hydrogen stock for you to consider.
Plug Power (PLUG)
In the world of green energy, Plug Power (NASDAQ:PLUG) stands out as a leader in providing comprehensive hydrogen solutions. Its technology focuses on electrolysis and hydrogen solutions, from mobility to sustainable fuels.
Although 2023 has presented challenges in hydrogen supply in North America, especially in the liquid market, Plug Power has demonstrated resilience. Despite negative impacts on gross margins, the third quarter saw notable sequential improvements, with a 21% increase in gross margin compared to the second quarter.
In other news, Plug Power was chosen to provide a 280 MW electrolysis system to Arcadia eFuels. This project will drive the production of green hydrogen and sustainable aviation fuel. In addition, they have partnered with Fortescue, a leader in green energy, to supply electrolyzers for the Gibson Island project, leading the way to mass production of green hydrogen.
Fortescue and Plug Power are not only working together in North America, but also exploring global investment opportunities. The proposed plant in Australia has the ambitious goal of producing 385,000 metric tons of green ammonia per year.
Ballard Power (BLDP)
Ballard Power Systems (NASDAQ:BLDP) is a leading company in the hydrogen fuel cell sector, specializing in various applications such as heavy mobility, stationary power and emerging markets. In the third quarter of 2023, it posted strong financial results, with a 29% year-on-year increase in total revenues, highlighting notable growth in the heavy mobility sector, especially in the rail and marine sectors.
Despite the challenges, the company effectively managed operating expenses, with a 9% reduction. Of particular note was Canadian Pacific Kansas City’s order for additional fuel cell engines, which support the development of hydrogen-powered locomotives in Alberta and align with the broader goal of environmental sustainability.
Ballard’s collaboration with Ford Trucks to supply a fuel cell system for a prototype hydrogen-powered vehicle is another significant milestone. This partnership, which includes an initial order for 2 FCmove-XD 120 kW fuel cell engines, demonstrates Ballard’s commitment to advancing clean energy solutions in the automotive industry.
In addition, its multiple purchase orders from Solaris, one of Europe’s leading bus manufacturers, solidify its presence in the hydrogen-powered public transport sector. The company’s dedication to reducing carbon emissions is evident in these collaborations, as evidenced by its funding of the Emissions Reduction Alberta program and participation in the European Union’s Horizon Europe ZEFES project.
As of this writing, Gabriel Osorio-Mazzilli 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.
