2025 Taiwan Hydrogen Energy Concept Stock Investment Guide: Seize the Opportunity in the Green Energy Boom

The wave of global net-zero carbon emissions has become an irreversible trend. The International Energy Agency predicts in the “Net Zero by 2050” report that to achieve carbon neutrality, the world’s hydrogen demand will reach 530 million tons by 2050. Currently, 17 countries worldwide have developed comprehensive hydrogen energy development strategies, and Taiwan has also included hydrogen supply accounting for 9%-12% in its net-zero carbon emissions pathway by 2050. Hydrogen energy is becoming the most promising emerging field for investment markets.

For investors, Taiwan’s hydrogen energy concept stocks are no longer distant future concepts but are now investment targets in a rapidly developing stage. These companies are leading the energy industry transformation by developing hydrogen fuel cell technology, building hydrogen storage solutions, and improving infrastructure.

Market Status: Why Taiwan’s hydrogen energy concept stocks are worth attention

In 2024, the global green hydrogen market is valued at approximately $1.1 billion, with an expected compound annual growth rate (CAGR) of 61.1%, reaching $30.6 billion by 2030. Behind this remarkable growth forecast is strong government support and explosive market demand.

Looking at the performance over the past year, the Morningstar Global Hydrogen Index recorded a 4.86% increase in 2024. Entering 2025, hydrogen energy concept stocks experienced a phase adjustment and then quickly rebounded, indicating market confidence in the long-term development of this sector.

Notably, the U.S. Department of the Treasury recently announced final rules for clean hydrogen production, clarifying the specific requirements for producers to receive a tax credit of up to $3 per kilogram. This policy alleviates market concerns about the cost feasibility of clean hydrogen and signals large-scale investment opportunities for related companies.

Taiwan’s hydrogen energy concept stocks have attracted attention due to their geographical advantages and government support policies. Domestic companies are actively deploying the entire industry chain from hydrogen production, storage, transportation, to application, creating new investment opportunities.

Notable Taiwan hydrogen energy concept stocks

Chung Hsing Electric (1513.tw) — Accelerating expansion of a domestic leader

Chung Hsing Electric, as a representative company among Taiwan’s hydrogen energy concept stocks, is accelerating the construction of hydrogen infrastructure. The company has partnered with domestic petrochemical enterprises and plans to build 2-3 large hydrogen refueling stations by 2025, with the first station expected to be operational in the second quarter.

Financially, as of December 2024, the company’s consolidated revenue reached NT$2.353 billion, a 16.72% increase year-over-year; for the full year, revenue was NT$25.61 billion, up 15.65% YoY, setting a new record high. Additionally, Chung Hsing Electric secured orders from Taipower’s grid enhancement project, with on-hand orders approaching NT$40 billion, some contracts extending until 2032, providing strong support for future revenue and profit growth.

According to FactSet surveys, five analysts’ target price estimates for Chung Hsing Electric have a median of NT$220, with a high of NT$244 and a low of NT$220.

Goliath (8996.tw) — New opportunities as a fuel cell component supplier

Goliath, as a major OEM supplier of Bloom Energy’s fuel cell dust collection boxes, has established a solid position in downstream applications within Taiwan’s hydrogen energy concept stocks. Its products are characterized by flexible installation, short cycle times, and strong adaptability, often deployable within months.

Looking ahead to 2025, Goliath’s management expects the plate heat exchanger business to achieve low double-digit growth, the fuel cell dust collection box business to realize high double-digit growth, and cooling products to see exponential revenue growth. The company is optimistic about achieving double-digit overall revenue growth, with profit growth likely surpassing revenue increases.

According to FactSet, analyst median target price for Goliath is NT$480, with a high estimate of NT$630.

Investment opportunities in Taiwan’s hydrogen energy concept stocks from overseas leaders

Besides domestic companies, global hydrogen industry leaders are also worth investor attention. Air Products and Chemicals Inc (NYSE: APD), one of the world’s largest commercial hydrogen suppliers, is leading in hydrogen infrastructure projects and is currently advancing several major projects. Wall Street analysts’ average 12-month target price is $362.31.

Plug Power (NASDAQ: PLUG), a pioneer in hydrogen fuel cell industry, has deployed 69,000 fuel cell systems, operates over 250 refueling stations in North America, and is building green hydrogen networks across North America and Europe. The average analyst target price is $2.73.

BP (NYSE: BP), a global energy giant, has set a goal to achieve net-zero emissions by 2050 or earlier, planning to invest in 5-10 hydrogen projects and produce 500,000 to 700,000 tons of low-carbon hydrogen by 2030. The average analyst target price is $36.10.

Investment risks of Taiwan’s hydrogen energy concept stocks

Although the prospects for Taiwan’s hydrogen energy concept stocks are promising, investors must recognize the industry’s real challenges.

Increased competition leading to stock price volatility cannot be ignored. As more companies enter the hydrogen sector, market competition intensifies. Even industry leaders like Plug Power face profit compression amid price wars. This competitive landscape will directly impact stock performance, causing significant fluctuations.

Hydrogen production costs remain an issue. Despite technological advances lowering production costs, most hydrogen is still produced from fossil fuels, limiting environmental benefits and tying hydrogen prices closely to oil prices. When international oil prices rise, hydrogen costs increase, affecting market competitiveness and corporate profits.

Industry maturity still requires time. Although most companies engaged in hydrogen research and infrastructure face long-term losses, this characteristic often makes Taiwan’s hydrogen concept stocks a focus of speculation, with stock prices experiencing large swings. Investors need patience and risk tolerance.

How to participate in Taiwan’s hydrogen energy concept stock investments

Investors can choose various ways to participate in this emerging field:

Direct stock investment suits those with higher risk tolerance and confidence in long-term development. This approach requires more capital but offers gains from stock price appreciation.

Contract for Difference (CFD) trading provides more flexibility. Investors do not need to buy stocks directly but can trade based on price movements, leveraging margin to realize profits. This is suitable for short-term traders but requires careful risk management.

Fund investment offers a relatively balanced risk approach. By investing in hydrogen energy concept stock funds, investors can indirectly hold multiple Taiwan hydrogen stocks and overseas giants, achieving diversification and risk reduction. Major options include Global X Hydrogen ETF (HYDR) and Direxion Hydrogen ETF (HJEN), covering industrial and materials stocks across the US, Europe, and Japan.

Industry chain investment logic of Taiwan’s hydrogen energy concept stocks

Understanding the hydrogen industry chain helps in selecting more precise investment targets.

Upstream hydrogen production mainly involves three types: gray hydrogen (from fossil fuels, highest carbon emissions), blue hydrogen (fossil fuels + carbon capture), and green hydrogen (produced via electrolysis using clean energy, zero emissions). In the future, green hydrogen is expected to become mainstream, with investment opportunities focusing on green hydrogen manufacturing.

Midstream storage and transportation involve hydrogen storage and transportation. Large-scale storage uses salt caverns/rock caverns with pipeline networks for cost efficiency but is geographically limited. Currently, high-pressure gaseous hydrogen transportation is mainstream, and the progress of hydrogen refueling station networks directly impacts industry advancement.

Downstream applications include transportation, industrial manufacturing, power generation, and energy storage, with transportation generally regarded as the most growth-potential sector.

From an investment perspective, the main growth opportunities for Taiwan’s hydrogen concept stocks are concentrated in upstream green hydrogen production and downstream transportation applications, which have stronger growth logic and market potential compared to other segments.

Outlook for 2025: Investment prospects for Taiwan’s hydrogen energy concept stocks

2025 will be a pivotal year for Taiwan’s hydrogen energy concept stocks. Domestic hydrogen refueling station construction and commissioning, further improvement of government support policies, and expansion of the global clean hydrogen market will bring new growth momentum to listed companies.

Darcy Partners reports that in 2023, a total of 1,418 hydrogen projects were announced worldwide, with a total investment of $570 billion, a 31% increase from the previous year. This indicates that global capital interest in hydrogen energy continues to rise.

For investors wanting to participate in this trend, key factors include selecting companies with competitive advantages in green hydrogen manufacturing, direct reduction iron, electrolyzer technology, fuel cells, storage and transportation infrastructure, and carbon capture. Taiwan’s hydrogen energy concept stocks include both domestic leaders and international giants. Investors should make rational allocations based on their risk preferences and time horizons.

Whichever investment method is chosen, seizing the opportunities in Taiwan’s hydrogen energy concept stocks is a practical step toward participating in future energy transition and sharing the benefits of the green economy.