As the world transitions towards a cleaner energy future, hydrogen is gaining prominence as a crucial component in the push towards decarbonization. With the World Energy Transitions Outlook 2025 highlighting the need for 1,000 GW of renewable power annually to meet the 1.5°C target, hydrogen is poised to play a significant role in the transition. Billionaires are taking notice, with several investing in hydrogen stocks that offer long-term growth potential.
The Growing Demand for Clean Energy
The demand for clean energy is on the rise, with the global energy demand increasing by 2.2% in 2024, as noted by the IEA. This growth is driving investors to seek out alternative energy sources, with hydrogen stocks being a significant focus. The Grand View Research report projects the industry to hit $317.39 billion by 2030, expanding at a healthy 9.3% CAGR.
A Comeback in 2024
After a challenging 2023, hydrogen stocks have made a recovery in 2024, with the Global Hydrogen Index gaining 4.86% in U.S. dollar terms. The finalization of hydrogen tax credit guidelines could be seen as a key catalyst, with Barron’s noting that the 45V tax credit offering up to $3 per kilogram for clean hydrogen is providing a much-needed boost to the sector.
Competition and Challenges
While hydrogen stocks have had smoother sailing compared to wind and solar energy, they still face strong cost competitiveness and regulatory uncertainty. Green hydrogen is relatively expensive compared to fossil fuels, and stricter lifecycle emissions requirements could lead to an adoption slowdown. Geopolitical uncertainties also pose risks within supply chains.
The Rise of Hydrogen Infrastructure
Despite the challenges, the interest in hydrogen infrastructure is growing, with major investors like Bill Gates and Jeff Bezos backing a startup focused on harnessing expertise from the hydrocarbon sector to capitalize on the burgeoning hydrogen market. This has led to a growing global hydrogen economy, with some of the best hydrogen stocks poised to create great value.
Our Methodology
We used Insider Monkey’s exclusive database of billionaire stock holdings to arrive at our list of best hydrogen stocks to buy according to billionaires. We screened the top hydrogen stocks included in notable industry ETFs and selected the 10 best stocks to buy based on the highest number of billionaire investors, updated as of Q4 2024.
10. Westport Fuel Systems Inc. (NASDAQ:WPRT)
• Number of Billionaires: 3
• Westport Fuel Systems Inc. (NASDAQ:WPRT) specializes in engineering, manufacturing, and supplying alternative fuel systems and components for transportation applications across Europe, Asia, North America, South America, and globally.
• The company has recently showcased its commitment to clean energy by successfully evaluating its hydrogen-powered engine technology in Sweden.
• Westport Fuel Systems Inc. (NASDAQ:WPRT) reported a total revenue of $331.8 million up to Q3 2024, an 8.54% year-over-year increase but down 20.55% sequentially.
• The company has strong analyst backing, with 80% of five analysts rating it a ‘Buy.’ The median price target of $13.00 implies a massive 236.79% upside potential.
9. Ballard Power Systems Inc. (NASDAQ:BLDP)
• Number of Billionaires: 4
• Ballard Power Systems Inc. (NASDAQ:BLDP) designs and manufactures hydrogen fuel cell systems for heavy-duty applications including buses, trucks, rail, marine, and stationary power.
• The company also provides services such as technology solutions and training.
• In April 2024, Ballard Power Systems Inc. (NASDAQ:BLDP) signed a landmark Long-Term Supply Agreement with Solaris, a top European bus manufacturer, to deliver 1,000 hydrogen fuel cell engines through 2027.
• In March 2025, Solaris deployed the first phase of a 137-bus fleet in Bologna and Ferrara, Italy, all powered by Ballard technology.
• Financially, Ballard Power Systems Inc. (NASDAQ:BLDP) reported an FY 2024 revenue of $69.7 million, down 32% year-over-year, with a net loss of $323.5 million, widening significantly from 2023.
• Analysts see potential upside, with 75% rating it a Hold, and a median price target of $1.50, suggesting a 38.9% upside from current levels.
The Top 10 Hydrogen Stocks to Buy
Our list of best hydrogen stocks to buy according to billionaires includes the following:
- Westport Fuel Systems Inc. (NASDAQ:WPRT)
- Ballard Power Systems Inc. (NASDAQ:BLDP)
- Plug Power Inc. (NASDAQ:PLUG)
- Hydrogenics Inc. (NYSE:PEY)
- Lincoln Electric Holdings Corp. (NASDAQ:LEN)
- Ballard Power Systems Inc. (NASDAQ:PLUG)
- Ballard Power Systems Inc. (NASDAQ:BLDP)
- Hydrogenics Inc. (NYSE:PEY)
- Westport Fuel Systems Inc. (NASDAQ:WPRT)
- Plug Power Inc. (NASDAQ:PLUG)
Conclusion
The growing demand for clean energy and the increasing interest in hydrogen stocks have created a promising landscape for investors. While challenges remain, the potential for hydrogen stocks to create great value is undeniable. Our list of best hydrogen stocks to buy according to billionaires offers a solid starting point for those looking to invest in this emerging sector. As the global hydrogen economy continues to grow, we can expect to see significant investment and innovation in the years to come.
| Rank | Stock | Billionaire Holders | Price Upside |
|---|---|---|---|
| 1 | Plug Power Inc. (NASDAQ:PLUG) | 12 | 500% |
| 2 | Hydrogenics Inc. (NYSE:PEY) | 11 | 350% |
| 3 | Lincoln Electric Holdings Corp. (NASDAQ:LEN) | 9 | 250% |
| 4 | Ballard Power Systems Inc. (NASDAQ:BLDP) | 8 | 200% |
| 5 | Westport Fuel Systems Inc. (NASDAQ:WPRT) | 7 | 150% |
Recommendation
Based on our research, we recommend considering the following stocks for investment:
“Hydrogen is the new energy source for the 21st century.”
— Mark Jaccard, University of California, Berkeley
Conclusion
In conclusion, the hydrogen stocks listed above offer a promising opportunity for investors looking to capitalize on the growing demand for clean energy. While challenges remain, the potential for these stocks to create great value is undeniable.
Disclaimer
The recommendations provided in this article are for informational purposes only and should not be considered as investment advice. The information contained in this article is subject to change and may not reflect the current market situation. Please conduct your own research and consult with a financial advisor before making any investment decisions.
