There has been a growing dissatisfaction with non-renewable energy across the world due to its associated environmental issues, and this has increased the desire for clean energy sources. While there are various clean energy sources, hydrogen fuel cell tops the list as one of the most accessible, abundant, and effective for multiple purposes. For instance, fuel cell electric vehicles (FCEVs) are powered by hydrogen, and this market is one of the fastest-growing in the United States, Europe, and Asia.
In the United States alone, there are about 23,000 fuel cell-powered operational forklifts. There is also a growing trend of fuel buses in states like California, Illinois, Michigan, and others. Apart from that, many countries are also adopting hydrogen fuel cell to power their homes. A good example is the recently launched UK green grants for homeowners. The government’s initiative will help guide more against climate change crises in the UK.
In various parts of Japan, the fuel cell-powered car, Mirai, by Toyota, is a very popular vehicle. Other leading companies in the global hydrogen fuel cell vehicle market include General Motors, BMW, Groupe Renault, Daimler AG, Hydrogenics, Mazda Motor Corporation, Kia Motors Corporation, Tata Motors Limited, and The Hyundai Motor Company.
Best Hydrogen Fuel Cell Stocks
In 2019, the global hydrogen market was worth $0.25 billion. It is expected to reach 0.38 billion by 2023, at a compound annual growth rate of 10%. All these show that the hydrogen fuel cell industry could be the next billion-dollar industry that can tremendously benefit investors who leverage its current growth. Having said that, it is of the utmost importance that investors choose carefully which hydrogen fuel cell company to invest in. Below are some of the leading firms with good stocks worth investing in.
– Ballard Power Systems (BLPD) Inc
Founded in 1979 and headquartered in Canada, Ballard is a leading company in the energy industry. It boasts of a $7.02 billion market cap, and its current stock price is $22.10. In January 2020, the company announced that its fuel cell technologies had powered more than 30 kilometres (18.5) million miles of commercial and medium-duty vehicle use on roads around the world. Following the announcement, BLPD stock rallied as it tripled in price – a stunning performance that impressed most investors and financial analysts. Many analysts believe BLDP stock is a good buy. Its 12-month median price is projected to be $34.00, representing a +53.85% increase from its current price of 22.10. The company recently announced its plans to equip 10 public transport busses in Holland. This has been described as a potential gateway into the European Union market.
– Bloom Energy Corp (NYSE: BE)
Founded in 2001 and headquartered in California, USA, Bloom Energy is a big player in the energy industry. The company’s market cap is $4.57 billion, and the stock is up 245% year-to- date. Bloom develops hydrogen fuel cells that run on only hydrogen gas as fuel. It also manufactures and sells a solid oxide fuel generator (SOFC) known as Bloom Energy Server. The product uses biogas or natural gas through the electromagnetic process without combustion. It offers its services to a wide range of leading industries, including financial services, technology, banking, cloud services, data centres, communications and media, government, healthcare, consumer packaged goods and consumables, hospitality, logistics, manufacturing, real estate, and retail industries. The stock witnessed a rally in Q3 2020 after Bloom announced its plans to explore the hydrogen fuel cell commercial market, describing it as a viable energy source. Bloom Energy is also entered into a partnership with SK Engineering &Construction Co. Ltd, a renowned South Korean energy firm. The partnership has yielded over $1 billion in revenue for Bloom Energy after selling 120 megawatts of fuel cells in South Korea. Bloom Energy Corp operates over 50 fuel cell power plants across the world. The stock currently sells at $24.46, and its 12-month price median estimate is $36 (+47.18% increase) based on analysts’ projections.
– Cummins Inc. (CMI)
The company’s stock is up 23% year-to-date, with a market cap standing at $37.82 billion. Founded in 1919 and headquartered in Columbus, Indiana, USA, Cummins uses hydrogen technologies and fuel cell to power various applications, ranging from transit buses, delivery trucks, semi-trucks and passenger trains. For about 2 decades, the company has been working on hydrogen-based technologies, and it currently has over 2,000 fuel cell installations across various on and off-highway applications. It acquired Hydrogenics, a Canadian hydrogen firm, in 2019, in a $290 million deal. The completion of the acquisition saw the CMI stock increase by 51% to investors’ delight. Currently, Cummings stock sells at $257, and its 12-month median estimate is $261, based on forecasts by 18 analysts. Many investment analysts recommend that investors continue to hold stocks in Cummins Inc. In 2020, Cummins stock beat analysts’ projections for the first three quarters of the year. When it was expected to post earnings of $2.41, Cummins surprisingly reported $3.57 per share, representing 48.13%. Before then, it had also surpassed the $0.85 analysts’ projection to produce $1.95 per share. In those two quarters, CMI stocks beat analysts’ estimates by 129%.
– ITM Power plc (ITMPF)
ITM Power is into the design and production of hydrogen energy solutions. Its products generate hydrogen gas based on the Proton Exchange Membrane (PEM) technology. ITMPF promises to be a profitable stock both on a short and long-term basis. In March 2020, the stock experienced some cratering as a fallout of the COVID-19 market reaction. However, ever since then, it has risen up to 550%, and many Wall Street analysts consider it an awesome buy. Its market cap is $2.955 billion, and its current price is $5.85. Its 1-year forecast is $10.344, and the 5-year estimate is $27.712.
– Air Products & Chemicals (APD)
Air Product & Chemicals is an 80-year-old company headquartered in Allentown, Pennsylvania, United States. It is one of the pioneers in the hydrogen fuel production industry. Its market cap is $61.353 billion, and the current stock price is $277.18. In July 2020, in conjunctions with two other firms, Air Products signed an agreement to mount the world’s largest green hydrogen project in Saudi Arabi. The $5-billion project will supply 650 tons per day carbon-free hydrogen for transportation globally – a deal that stands to benefit the company’s stock. The 12-month median forecast for this stock is $301, representing a +8.59% increase from its current price of $277.18.
Disclaimer: This article was written and prepared by Olusegun Akinfenwa in his personal capacity. The opinions and analysis expressed in this article are the author’s own and do not reflect the view of FuelCellsWorks, its staff, owners, directors, and/or partners. Any advice provided herein is not to be considered financial or investment advise, and you should always seek the advice of an accredited financial advisor prior to undertaking any transaction.
Olusegun Akinfenwa, Contributor
Olusegun is a political correspondent for ImmiNews, a UK based organization that covers political and social events from around the world.