Juejin Green Energy: The Complete Guide to Investing in Hydrogen Stocks by 2026

The global net-zero carbon emission goal has become a consensus, and investment opportunities in clean energy continue to emerge. Amid this green wave, hydrogen stocks, supported by policies and technological advances, are gradually becoming a new focus for capital deployment. Over the past year, although overall gains have fallen short of expectations, the long-term growth logic of hydrogen stocks remains strong. For investors seeking to participate in the energy transition, now is the critical moment to deepen understanding and develop strategic layouts.

Policy Push vs. Market Reality: Current Opportunities in Hydrogen Stock Investment

In 2024, major positive developments in global hydrogen investment are occurring. The U.S. Department of Energy announced final rules for clean hydrogen production, clarifying that producers can receive tax credits of up to $3 per kilogram, providing industry with a reassuring boost. Following this policy clarity, related renewable energy stocks like Plug Power rose sharply, reflecting market expectations of strong policy support.

Market performance shows that the Morningstar Global Hydrogen Index gained 4.86% in 2024, slightly below the broader market but demonstrating resilience in the hydrogen industry. By early 2026, despite volatility, hydrogen stocks have shown rapid rebound potential, with market confidence in their long-term prospects remaining intact.

The International Energy Agency (IEA) released the “Net Zero by 2050” report, which strongly supports the outlook: to achieve net-zero, global hydrogen demand will reach 530 million tons by 2050. Currently, 17 countries have developed comprehensive hydrogen strategies. In Taiwan, hydrogen is planned to account for 9%-12% of energy supply in the 2050 net-zero pathway, indicating a clear momentum for growth.

The global green hydrogen market was valued at approximately $1.1 billion in 2023, with a projected compound annual growth rate (CAGR) of 61.1%, reaching $30.6 billion by 2030. This growth rate far exceeds that of traditional energy sectors, confirming the growth potential of hydrogen stocks.

Top 5 Hydrogen Stocks: Who Will Lead the Clean Energy Era

Air Products and Chemicals Inc (NYSE: APD)

As one of the world’s largest commercial hydrogen suppliers, APD leads in hydrogen infrastructure. The company is advancing several major hydrogen projects, expected to be completed and operational in the coming years.

Based on a 12-month target price survey by Wall Street analysts (15 analysts, data from the past 3 months), APD’s average target price is $362.31, with a high of $385 and a low of $300. This range reflects a relatively optimistic market view of its fundamentals.

Plug Power (NASDAQ: PLUG)

Plug Power is a pioneer in hydrogen fuel cells. As the first to commercialize hydrogen fuel cell technology, the company has deployed over 69,000 industry-leading fuel cell systems in the electric mobility market.

In infrastructure, Plug Power is one of the largest hydrogen purchasers globally, operating a leading hydrogen refueling network in North America with over 250 stations. The company is building an end-to-end green hydrogen network covering production, storage, and transportation in North America and Europe.

According to 21 Wall Street analysts’ 12-month target prices (data from the past 3 months), PLUG’s average target is $2.73, with a high of $5.00 and a low of $1.00. The wide range indicates differing market views on its business prospects.

BP (NYSE: BP)

As a global energy giant, BP has incorporated hydrogen into its strategic transformation, aiming for net-zero emissions by 2050 or earlier. The company plans to expand its hydrogen business through five to ten projects worldwide. By 2030, BP expects to produce 500,000 to 700,000 tons of low-carbon hydrogen annually, demonstrating its strategic commitment.

Based on a 12-month target price assessment by 9 Wall Street analysts (past 3 months), BP’s average target is $36.10, with a high of $50.00 and a low of $30.00.

Chung Hsing Electric & Machinery Co., Ltd. (1513.tw)

Chung Hsing Electric has actively laid out in the hydrogen industry for years. Currently, it is deepening cooperation with domestic petrochemical giants, planning to build 2-3 large hydrogen refueling stations by 2025, with the first already operational this year. Besides infrastructure, Chung Hsing has secured orders for GIS switches and integrated projects for Taipower’s grid reinforcement, with nearly NT$40 billion in backlog, some extending to 2032.

Performance highlights include: In December 2024, consolidated revenue reached NT$2.353 billion, up 16.72% YoY, setting a new monthly record; full-year revenue was NT$25.61 billion, up 15.65%, surpassing market expectations of NT$25 billion.

According to FactSet, 5 analysts’ median target price for Chung Hsing Electric was lowered from NT$230 to NT$220 (a 4.35% decrease), with a high of NT$244 and a low of NT$220. This adjustment may reflect cautious investor sentiment regarding sustainable growth.

Kuo Lee (8996.tw)

Kuo Lee has long been a major OEM supplier for Bloom Energy’s fuel cell dust removal boxes (Hot Box). Its products are highly flexible, adaptable to different data center sizes, with short installation cycles of a few months.

In recent earnings calls, the company expressed optimism: it expects low double-digit growth in plate-type heat exchangers by 2025, high double-digit growth in fuel cell dust removal boxes, and potentially multiple-fold revenue growth in cooling products. Kuo Lee is optimistic about achieving double-digit overall revenue growth in 2025, with profit growth expected to outpace revenue.

According to FactSet, 5 analysts’ target prices for Kuo Lee’s median value decreased from NT$533 to NT$480 (a 9.94% drop), with a high of NT$630 and a low of NT$480.

Investors can also consider hydrogen ETFs for indirect exposure, such as the Global X Hydrogen ETF (HYDR) and Direxion Hydrogen ETF (HJEN). These funds mainly invest in companies involved in hydrogen production, storage, transportation, and related equipment (fuel cells, electrolysis). They cover stocks from the US, Europe, Japan, and other regions, including industrial and raw material sectors. Based on risk appetite, investors can choose between individual stocks and hydrogen ETFs.

Accelerating Green Hydrogen Revolution: Long-term Growth Logic of Hydrogen Stocks

According to Darcy Partners, a tech intelligence firm, in 2023, 1,418 hydrogen projects were announced worldwide, with total investments reaching $570 billion—up 31% from two years prior. This vividly demonstrates industry confidence in hydrogen’s prospects.

Several key trends are reshaping hydrogen stock valuations:

Policy Environment Optimization. Clear U.S. clean hydrogen tax credits provide transparent investment return expectations, removing previous policy uncertainties that caused hesitation. Many companies, previously cautious, are now accelerating hydrogen project investments.

Technological Breakthroughs. Continuous improvements in electrolysis technology are lowering green hydrogen production costs. The sharp decline in renewable energy costs makes solar and wind-driven green hydrogen increasingly economical.

Expanding Application Scenarios. The adoption of fuel cell electric vehicles, rising industrial demand for clean energy, and exploration of long-term energy storage solutions open new growth space for hydrogen stocks. The transportation sector is expected to be the fastest-growing application segment.

Risks and Opportunities: A Must-Read Before Investing in Hydrogen Stocks

Hydrogen is viewed as a key to reducing dependence on fossil fuels, with broad applications in transportation, industry, and power generation, offering promising market prospects. Government policies and infrastructure investments will continue to benefit related companies.

However, caution is advised regarding these risks:

Intensifying Competition. As the hydrogen market matures, new entrants are flooding in, increasing industry competition. Leading companies face greater profit erosion pressures. For example, Plug Power’s profitability in price wars has been impacted, affecting stock performance. Investors should monitor cost management and technological innovation capabilities.

Production Cost Challenges. Despite technological advances, reliance on fossil-fuel-based hydrogen production remains prevalent, limiting environmental benefits and tying hydrogen prices closely to oil markets. Rising international oil prices increase production costs, affecting competitiveness and stock performance.

Infrastructure Maturity. The pace of hydrogen refueling station development directly impacts market expansion. Currently, global hydrogen station distribution is uneven, with some regions severely lacking infrastructure, constraining growth.

Therefore, investors should focus on companies developing green hydrogen direct reduction ironmaking, electrolyzers for clean hydrogen, hydrogen fuel cells, storage and distribution infrastructure, and carbon capture, utilization, and storage (CCUS) technologies.

Three Investment Paths: CFD Trading vs. Stocks vs. Funds — How to Choose Hydrogen Stocks

There are various ways to invest in hydrogen stocks, each with its characteristics. Investors should choose based on their own circumstances.

CFD Trading is a financial derivative allowing traders to speculate on price movements without owning the underlying stocks. It offers high flexibility, leverage, and is suitable for short-term, risk-tolerant investors. The minimum investment threshold is low, and capital efficiency is high.

Traditional Stock Investment involves directly purchasing and holding hydrogen stocks to profit from price appreciation. It is more stable and suitable for long-term, lower-risk investors. However, it requires more capital and offers more moderate returns.

Fund Investment allows indirect exposure to a diversified basket of hydrogen stocks, providing risk management and diversification benefits. Compared to individual stocks, funds have better risk control but generally lower returns than CFDs or direct stocks.

In summary, aggressive investors may prefer CFDs or individual stocks; conservative investors might lean toward funds or ETFs; balanced investors can consider combining all three.

The Complete Hydrogen Industry Chain: From Production to Application

Understanding the investment opportunities in hydrogen stocks requires grasping the entire industry chain.

Upstream: Hydrogen Production

Current methods produce three types of hydrogen:

• Gray Hydrogen: Made from fossil fuels (oil, natural gas, coal), with high carbon emissions.

• Blue (or Green) Hydrogen: Derived from fossil fuels with carbon capture, utilization, and storage (CCUS) to reduce emissions.

• Green Hydrogen: Produced via electrolysis powered by renewable energy (solar, wind, nuclear), achieving zero emissions.

In the future, green hydrogen’s share will significantly increase, making upstream investment opportunities focus on green hydrogen technology and production.

Midstream: Storage and Transportation

Large-scale storage options include salt caverns and rock caverns, with pipeline transportation being the main method—high-pressure gaseous hydrogen and liquefied hydrogen are common. Hydrogen refueling stations are critical nodes; their number and distribution directly influence storage and transportation costs.

Downstream: Applications

Hydrogen’s applications span transportation, industrial manufacturing, power generation, and energy storage. Among these, transportation is expected to grow fastest. The core investment logic points to upstream green hydrogen production and downstream transportation and application sectors, which have stronger growth drivers and market potential.

Summary

Investing in hydrogen stocks hinges on capturing the deep opportunities brought by the global energy transition. Policy support, technological progress, and market demand form a growth triangle for the industry. Once green hydrogen infrastructure matures, widespread application will follow, making leading companies in manufacturing, storage, distribution, and end-use the main beneficiaries of long-term gains.

By selecting individual hydrogen stocks or ETFs, investors can efficiently participate in the industry’s long-term development. However, industry risks—costs, competition, policy changes—must be continuously monitored. With a thorough understanding of these risks and a tailored investment strategy aligned with personal risk tolerance, investors can steadily capitalize on the green energy era.