2025 Hydrogen Energy Concept Stock Investment Guide: Seize New Opportunities in Green Energy Transition

Why Focus on Hydrogen Energy Concept Stocks?

Global warming has become an irreversible trend. At the current rate of carbon emissions, by 2100, the rise in Earth’s temperature could have devastating consequences. Therefore, achieving the “carbon neutrality” goal has become a global consensus—this is not only an environmental commitment but also an inevitable choice for economic development.

Against this backdrop, hydrogen energy, as a clean and efficient energy alternative, is becoming a focal point in the investment market. Compared to traditional energy sources, hydrogen offers advantages such as zero pollution, high energy density, and broad application scenarios. Listed companies focusing on hydrogen fuel cell technology, hydrogen storage solutions, and infrastructure construction are leading the global energy industry transformation.

This article will analyze the market opportunities and risks of hydrogen energy concept stocks from an investor’s perspective, providing reference for your investment decisions.

Core Definition of Hydrogen Energy Concept Stocks

Hydrogen energy concept stocks refer to listed companies involved in hydrogen production, storage, transportation, technology development, and end-use applications. These stocks are a core part of the hydrogen energy industry chain and represent the investment direction of the low-carbon economy era.

It is worth noting that this industry remains in the investment stage for the long term—most hydrogen companies have not yet achieved profitability in recent years. However, precisely because of this, these companies have become “darling” targets for institutional investors and sustainable development funds, frequently pursued by capital, leading to significant stock price volatility.

Market Performance in 2024-2025

Looking at data from the past year, the performance of hydrogen energy concept stocks has been “volatile”:

In 2024, the Morningstar Global Hydrogen Index increased by 4.86%. While outperforming some sectors, it still lagged behind the overall market gains. In early 2025, US-listed hydrogen energy concept stocks experienced noticeable fluctuations—initially plunging sharply in January, then rebounding quickly, reflecting the market’s mixed sentiment toward this sector.

This volatility precisely reflects the dual nature of hydrogen energy investment: optimistic in the long term, but with high short-term risks.

Three Investment Approaches for Hydrogen Energy Concept Stocks

Before investing, investors need to understand three main participation methods, each with its pros and cons:

Contract for Difference (CFD) Trading

This is a financial derivative trading method. Investors do not purchase actual stocks but trade contracts based on predicting price movements.

Advantages: high flexibility, strong leverage, low capital requirements (some platforms allow accounts with as little as $50), supports short selling.
Disadvantages: extremely high risk, easy to get liquidated, suitable for short-term speculators.
Suitable for: experienced traders with high risk tolerance.

Traditional Stock Investment

Directly buy and hold hydrogen energy concept stocks to gain long-term returns.

Advantages: relatively stable, clear returns, less psychological pressure.
Disadvantages: requires significant initial capital, long return cycle, high risk of single assets.
Suitable for: investors seeking stable returns and risk-averse.

Fund Investment (Including Hydrogen ETFs)

Invest in hydrogen-themed funds or ETFs to indirectly hold multiple hydrogen companies.

Advantages: risk diversification, professional management, high transparency, suitable for systematic investment.
Disadvantages: returns affected by management fees, relatively less flexible.
Suitable for: investors with moderate risk appetite seeking to reduce stock-picking burden.

Leading Global Hydrogen Energy Concept Stocks Analysis

Air Products and Chemicals Inc (NYSE: APD)

As the world’s largest commercial hydrogen supplier, APD is at the forefront of hydrogen fuel infrastructure. The company is advancing several major hydrogen projects, expected to be completed over the next few years.

Investor consensus: 15 Wall Street analysts’ average 12-month target price is $362.31, with a high of $385 and a low of $300. Over the past year, APD has gained 53.96%, showing strong performance.

Plug Power (NASDAQ: PLUG)

This company is a pioneer in hydrogen fuel cell technology, deploying over 69,000 fuel cell systems in the electric mobility market, becoming a model for large-scale application in the industry.

Operational scale: Plug Power is one of the largest hydrogen purchasers globally, operating over 250 hydrogen refueling stations in North America, building an end-to-end green hydrogen network covering North America and Europe.

Investor expectations: 21 Wall Street analysts’ average target price is $2.73, with a forecast range of $1.00–$5.00. However, it is important to note that PLUG has fallen 55.17% in the past year, indicating challenges faced by the company.

BP (NYSE: BP)

Traditional energy giant BP is implementing an aggressive energy transition strategy, aiming for net-zero emissions by 2050. Hydrogen energy is a core pillar of its low-carbon strategy.

Development plan: BP plans to invest in 5-10 hydrogen projects worldwide, producing 500,000–700,000 tons of low-carbon hydrogen annually by 2030.

Analyst view: 9 analysts’ average target price is $36.10, with a forecast range of $30–$50. The stock has declined 7.59% over the past year, remaining relatively stable.

ZTE Electric (1513.tw)

This Taiwanese company has been deeply involved in the hydrogen industry for years, collaborating with domestic petrochemical leaders to promote hydrogen station construction, with the first station expected to be operational in Q2 2025.

Performance highlights: In December 2024, revenue reached NT$2.353 billion, up 16.72% YoY; annual revenue hit NT$25.61 billion, a record high, up 15.65%, exceeding market expectations. Additionally, ZTE Electric’s orders are close to NT$40 billion, with some extending to 2032.

Target price assessment: The median target price from 5 analysts was lowered from NT$230 to NT$220, with a high of NT$244 and a low of NT$220. The stock has increased 22.45% in the past year.

Golit (8996.tw)

Golit is a major OEM for Bloom Energy’s fuel cell dust removal boxes (Hot Box), with flexible installation and short cycle times.

2025 outlook: The company expects double-digit growth in the plate heat exchanger business, high double-digit growth in fuel cell dust removal boxes, and multiple-fold growth in heat dissipation products, with overall revenue and profit growth outperforming revenue growth.

Target price adjustment: The median target price from 5 analysts was lowered from NT$533 to NT$480, with a high of NT$630 and a low of NT$480. It has gained 1.83% over the past year.

Alternative Options for Hydrogen Energy Concept Stocks: Hydrogen ETFs

For investors who prefer not to pick individual stocks, hydrogen ETFs offer a convenient alternative:

• Global X Hydrogen ETF (HYDR)
• Direxion Hydrogen ETF (HJEN)

These funds mainly invest in companies involved in hydrogen production, storage, transportation, and related equipment technology, covering industrial and materials stocks in the US, Europe, and Japan, effectively diversifying single-stock risks.

Driving Forces Behind the Hydrogen Industry Development

Unprecedented Policy Support

The US Department of the Treasury recently announced the final rules for clean hydrogen production, clarifying that producers can receive a tax credit of up to $3 per kilogram. This policy framework alleviates previous investment concerns—many companies hesitated on hydrogen projects before the rules were clear. After the policy was announced, new energy stocks including Plug Power surged.

Huge Global Demand Outlook

According to the IEA “Net Zero by 2050” report, to achieve zero emissions, global hydrogen demand in 2050 will reach 530 million tons. Seventeen countries have already formulated comprehensive hydrogen development strategies. Taiwan’s 2050 net-zero carbon plan sets the hydrogen supply ratio at 9%-12%.

Market Scale Growth is Astonishing

The global green hydrogen market was valued at about $1.1 billion in 2023, with a projected compound annual growth rate of 61.1%, reaching $30.6 billion by 2030. In 2023, a total of 1,418 hydrogen projects were announced worldwide, with a total investment of $570 billion, up 31% from the previous year.

Behind these figures lies the reality that hydrogen energy is on the verge of explosive growth, but actual returns will take time to realize.

Risks to Avoid When Investing in Hydrogen Energy Concept Stocks

Increasing Industry Competition Threat

As the market matures, new entrants keep emerging, intensifying competition for market share. Leading companies face greater pressure—for example, Plug Power’s price wars have directly eroded profits, dragging down stock prices. Investors should continuously monitor companies’ technological innovation capabilities and cost control.

Production Costs Remain a Bottleneck

Although green hydrogen technology has advanced significantly, a large portion of hydrogen is still produced using fossil fuels. This limits environmental benefits and links hydrogen prices to oil markets. When international oil prices rise, hydrogen production costs increase accordingly, impairing competitiveness.

Uncertainty in Commercialization Progress

While many projects are underway, relatively few have entered commercial operation. Technology validation, cost optimization, and supply chain development all require time. Investors should avoid excessive optimism and have rational expectations about industry maturity cycles.

Investment Logic of the Hydrogen Industry Chain

Upstream: Green Hydrogen Production

Hydrogen production sources are classified into three types:

• Gray Hydrogen: produced from fossil fuels, highest carbon emissions
• Blue Hydrogen: produced from fossil fuels with carbon capture, moderate emissions
• Green Hydrogen: produced via electrolysis powered by clean energy, zero emissions

In the future, the proportion of green hydrogen will increase significantly, focusing investment opportunities mainly on green hydrogen production.

Midstream: Storage and Transportation

Large-scale hydrogen storage using salt caverns/rock caverns plus pipelines is the optimal solution (low cost, high feasibility), but geographic restrictions are evident. Currently, high-pressure gaseous hydrogen transportation is mainstream. Hydrogen refueling stations, as industry hubs, directly impact storage and transportation costs.

Downstream: End-Use Applications

Hydrogen energy applications include transportation, industrial manufacturing, power generation, and energy storage, with transportation being the largest growth point.

Investment insight: The growth logic of the industry chain mainly focuses on upstream green hydrogen production and downstream transportation, with these two segments offering the most robust growth potential and rationale.

Investment Decision Points

Hydrogen energy concept stocks are key players in the future energy transition, but cautious investment is necessary:

1. Choose companies with technological moat—prioritize those with core competitiveness in clean hydrogen production, electrolysers, hydrogen fuel cells, and storage infrastructure.

2. Rationally view policy dividends—policy support is beneficial but not sufficient. Commercialization ability and cost control are decisive.

3. Diversify risks—investing in hydrogen ETFs can benefit from the industry’s long-term development and avoid black swan risks of individual companies.

4. Prepare for the long term—the hydrogen industry is still in early investment stages; actual commercialization profits may take 3-5 years or longer.

5. Select participation methods based on risk appetite—low risk preference: traditional stocks or funds; high risk: CFD trading.

Overall, hydrogen energy concept stocks represent the direction of energy industry transformation, but are not an overnight investment opportunity. Investors should understand the risks thoroughly and choose participation methods flexibly according to their circumstances.