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Signs continue to mount that the demand for hydrogen fuel stocks will be quite strong in the coming years. One of the latest such developments was the strong Q2 delivery data provided by Hydrogen-powered truck maker Nikola (NASDAQ:NKLA). In Q2, the company delivered 72 such trucks, well above its previous guidance of 60. Moreover, one of its customers was Walmart’s (NYSE:WMT) Canada unit. That indicates that the world’s largest retailer is interested in participating in the Hydrogen Revolution.
Meanwhile, in Australia, Climate Impact Corporationintends to develop a huge 20 gigawatts of green hydrogen initiatives. The firm plans to partner with GE Vernova (NYSE:GEV) for the projects. Here are three top hydrogen fuel stocks that can soar as the demand for green hydrogen surges.
Plug Power (PLUG)
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Plug Power (NASDAQ:PLUG) continues to lay the groundwork to become a leader of the Hydrogen Revolution. The company is reporting huge losses. However, in the coming years, it plans to build several new green hydrogen plants. Given the large, growing demand for green hydrogen, and the tax credits for the fuel in the U.S., the company’s fuel business will likely become very profitable in the long-term. Indeed, Plug has said that it plans to generate “growing positive fuel margins in 2025 and beyond.”
Similarly, deployments of the company’s electrolyzers are rapidly ramping up. As a result, I believe that this business will generate huge profits over the long-term as its revenue surges and its costs drop. Electrolyzers are used to produce green hydrogen.
Showing how rapidly the business is growing, Plug reported that it plans to “ship and begin commissioning” at least 37 electrolyzers in 2024. These units will produce 40 metric tons of green hydrogen per day.
Moreover, Plug is likely to benefit from Nikola’s success, since the two firms announced a partnership in December 2022. With Plug becoming a leader in the green hydrogen boom, I believe that it is one of the best hydrogen fuel stocks to buy.
Air Products (APD)
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Air Products (NYSE:APD) provides gases for industrial companies, and looks poised to benefit tremendously from strong demand for green hydrogen. Last month, Air Products disclosed that it had signed a 15-year deal to provide 70,000 tons of green hydrogen to TotalEnergies in Europe. The deliveries are slated to begin in 2030.
Also last month, the firm announced that it would “build a network of hydrogen refueling stations running the length of California.” As a result, the company looks poised to become a leader in the operation of such stations. Given the likely strong demand for hydrogen in the U.S., these stations are likely to eventually become very profitable.
The company plans to build a $4 billion green hydrogen plant in Texas. However, APD has decided to wait for the IRS to issue the final rules on America’s hydrogen tax credits before making its final investment decision. But, since the company said that the initial rules reduced by the agency were acceptable, it is likely to proceed. The facility will give the company another way to benefit from the strong demand for green hydrogen.
Given the many ways in which Air Products looks poised to benefit from the Hydrogen Revolution, I view it as one of the top hydrogen fuel stocks.
Air Liquide (AIQUY)
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Gas producer Air Liquide (OTCMKTS:AIQUY) is slated to become a major supplier for Exxon Mobil’s (NYSE:XOM). XOM plans to build a hydrogen plant in Texas which will also produce ammonia. Air Liquide intends to supply 9,000 metric tons per day of oxygen and up to 6,500 metric tons per day of nitrogen to the facility. According to Exxon, the plant will become the world’s largest producer of hydrogen. It is slated to produce 1 billion cubic feet per day of hydrogen.
Interestingly, Air Liquide also looks poised to benefit from the AI Revolution. That’s because it’s building a $250 million plant in Idaho to provide Micron (NASDAQ:MU) and other chip makers with gases. The facility is supposed to start producing gas at the end of next year.
Keep an eye on AIQUY since it is dipping its toes into two different, yet lucrative, markets.
On the date of publication, Larry Ramer held long positions in PLUG,GEV, and MU. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.
Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been SMCI, INTC, and MGM. You can reach him on Stocktwits at @larryramer.
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