10 Best Hydrogen Penny Stocks to Buy in 2022

Governments and businesses worldwide are phasing out fossil fuels to curb global warming. As a result, an investor who makes money at the outset has a better chance of making a fortune.

We have picked the best hydrogen penny stocks to buy right now if you want to get your foot in the door. Fuels like coal and oil may not last forever. The wind of energy is changing, and fossil fuels may not be around for long.

Solar energy and wind power are already familiar to investors, but hydrogen's potential is often overlooked. Among other eco-friendly energy applications, fuel cells can benefit from their use.

However, which hydrogen stocks are worth a closer look? Check out our top penny stocks for hydrogen if you're on the lookout for good hydrogen penny stocks in 2022.

Introduction 

There is no place in the universe where hydrogen cannot be found - it is the most abundant gas in the universe and accounts for 75% of all baryonic matter. As a result of its abundance of hydrogen, hydrogen is a renewable energy source.

Hydrogen can be extracted in many ways: traditionally, it is obtained by electrolyzing water. However, hydrogen energy with minimal waste is now more efficient thanks to several energy companies, which have developed more efficient techniques.

Solid oxide fuel cells, alkaline fuel cells, and proton exchange membranes fall into this category.

A hydrogen fuel cell produces minimal waste in the form of water when you use it. Hydrogen is a cheap, renewable source of energy.

Governments throughout the world are supporting hydrogen power. For example, as part of its goal to become carbon-neutral by 2050, the U.K. has committed to promoting hydrogen power as a means of meeting this target. In months and years to come, financial and regulatory support should follow.

Companies that produce hydrogen have seen their stocks rise as investors start to see hydrogen's potential. Using hydrogen power over the next decade could generate more than £4 billion in private investment.

Hydrogen fuel will become more popular as investors and corporations emphasize environmental, social, and governance issues (ESG).

Are hydrogen penny stocks a good investment? 

Currently, hydrogen penny stocks in 2022 are highly unpredictable. However, the green energy movement could quickly change as it grows in the public and private sectors. Therefore, investors should take advantage of this dip.

Globally, countries have pledged to reduce their greenhouse gas emissions. The United States promises to decrease CO2 emissions by 50% to 52% in the next few years, and Europe hopes to reduce CO2 emissions by 55%. In the next 40 years, China plans to stop releasing CO2.

Commitments to minimizing emissions could pave the way for a clean hydrogen power era. It is, after all, true that pure hydrogen can accelerate the decarbonization of our economy across all sectors, according to the Clean Hydrogen Future Coalition.

Currently, this appears to be the case in the United States. For example, earlier this week, the United States Department of Energy (DOE) announced it would invest $52.5 million in projects to develop clean hydrogen technology.

Additionally, several firms and analysts predict that hydrogen will become more popular as a green energy source in the future. Hopefully, the hydrogen market could be worth up to $11.7 trillion, according to Goldman Sachs and Bank of America. "Green hydrogen has long been hailed as 'the fuel of the future and is a potential alternative fuel which could transform our energy system," wrote Andrea Hak for The Next Web.

Where to buy hydrogen stocks? 

Robinhood is their preferred trading app for many new investors because it adds a level of accessibility that many other apps of its kind lack.

Check out the below given best hydrogen penny stocks on Robinhood if you already have an account or want to sign up.

It's a great idea to use a free stock trading platform with no commission fees and a straightforward interface as an alternative to Robinhood.

Many brokers let you trade hydrogen energy stocks quickly and easily.

You can speculate on the price of hydrogen shares without owning them directly by trading them. The shares will be "sold" (go short) if you believe that their price is going to fall, and "bought" (gone long) if you think that their price is going to rise.

Trading platforms allow you to trade leveraged derivatives such as CFDs with hydrogen shares. The concept of leverage is the ability to leverage a deposit into total market exposure. Remember that even though leverage is an essential tool for increasing profits, it can also lead to increased losses, so managing your risk is crucial.

Buying hydrogen shares 

• Access your trading platform by creating an account or logging in

• Look for your opportunity

• Select the 'buy' option in the deal ticket

• Manage your risk by choosing your position size

• Open your position and monitor it

Selling hydrogen shares 

• Register or log in 

• Seek out your opportunity

• To sell a deal, select the 'sell' option

• Manage your risk by selecting the position size that is right for you

• Keep an eye on your short position

Top 10 Hydrogen penny stocks 

Stocks with direct access to the hydrogen market in the U.K. are the best hydrogen stocks. The Alternative Investment Market (AIM), which contains smaller, growth-oriented companies, offers ten dedicated hydrogen technology stocks. These stocks are:

Westport Fuel Systems, Inc. (NASDAQ: WPRT)

Westport Fuel Systems Inc. is a Canadian provider of sophisticated products and solutions related to clean fuels. 

Westport Operations designs, manufacture, and distribute natural gas components, systems, and related products for OEM clients and aftermarket customers in this sector.

An initial start-up test for the hydrogen combustion engine was completed in March 2021.

The Westport Fuel Systems company serves European and North American customers and Asian, South American, and African clients.

As part of its climate pledge agreement, Amazon has committed to reaching net-zero carbon emissions by 2040. Over 700 compressed natural gas trucks powered by Westport have already been ordered.

Westport Fuel Systems, Inc. (NASDAQ: WPRT) price chart

Hydrogen fuel cell vehicles may compete with conventional electric cars to deliver what it promises.

Moreover, Westport's acquisition of Stako (a manufacturer of buildings and structures) also led to record profits this year.

AFC Energy Plc (NASDAQ: AFGYF)

AFC Energy Plc has researched, developed, and produced hydrogen-based energy storage technologies throughout its lifecycle. 

AFC Energy Plc (NASDAQ: AFGYF) price chart

Through its patented electrolyzer technology, which breaks down water into oxygen and hydrogen gas, this company focuses on developing new sources for clean energy storage.

Recent developments in AFC Energy's hydrogen power technology and the signing of global distribution agreements indicate the company's continued success as a significant clean energy firm.

This penny stock could see tremendous growth if successfully launching its hydrogen-based energy storage system.

The company, headquartered in the U.K., provides fuel cell technology that combines hydrogen and oxygen to produce electricity, heat, and water for various industries, including mobility, construction, and temporary power.es.

Among the most successful names in the maritime industry is AFC Energy plc (LSE: AFC.L), which on December 1 announced that "it would supply its fuel cell technology to ZeroCoaster Consortium, an organization funded by the Norwegian government that is looking to go green and transition to zero-emission shipping solutions."

As part of the partnership, AFC Energy plc will also offer a 200-kilowatt hydrogen fuel cell charging system for electric vehicles in collaboration with ABB Ltd (NYSE: ABB), the world's largest automatic system manufacturer. £4 million is the value of the contract.

First Hydrogen Corp (NASDAQ: FHYDF)

First Hydrogen Corp. is a U.S. company that designs and develops hydrogen energy technology.

In Cambridge, a company offered hydrogen storage in metal hydrides, electrolysis systems based on water splitting, and photoelectrochemical cells (PEC).

In the future, diesel engines will have a significant advantage over current diesel engines in mines worldwide thanks to First Hydrogen's Electric Hybrid Technology.

Having completed the prototype in the U.K., the company has drawn the attention of investors all over the world.

First Hydrogen Corp (NASDAQ: FHYDF) price chart

Among the tests, First Hydrogen's zero-emission hydrogen vehicle will undergo tests of its range, payload, towing, and refueling potential.

Furthermore, the company can gather detailed specifications for its bespoke design in conjunction with securing orders from customers in the E.U., North America, and the U.K.

Bloom Energy (B.E.)

Bloom Energy shares caught double bottom support around $20.60, failing to break triple top resistance around $27.50. It would be nice to see Bloom Energy's share prices regain a prior high of about $45. Because of the explosive nature of the hydrogen industry, this should be feasible.

Bloom Energy deals with fuel cell energy solutions based on hydrogen. Recent projects include a 100-kilowatt hydrogen-powered solid oxide fuel cell built with S.K. Engineering & Construction from Korea. This technology produces no carbon emissions.

Additionally, Bloom Energy and Baker Hughes (NYSE: BKR) will collaborate on commercializing and deploying hydrogen solutions for energy transitions shortly. These efforts will be critical in pushing for more sustainable energy solutions by public and private sector groups.

Bloom Energy (B.E.) price chart

The company's earnings have grown just as fast. The company's first-quarter revenue of $194 million grew 23.8% year-over-year (YOY). In addition, a total of $137.9 million outcomes through product revenue increased 38.5% year over year. Last but not least, gross margins increased from 12.7% to 28.2%, an increase of 15.5 percentage points.

NEL ASA

NEL ASA is a hydrogen company that produces, stores, and distributes hydrogen generated from renewable sources in terms of business.

NEL ASA price chart

The company operates through two segments, namely, Nel Hydrogen Fueling and Nel Hydrogen Electrolyser. In this segment, Nel manufactures hydrogen fueling stations that enable fuel cell electric vehicles to be fueled swiftly and have the same range as conventional diesel engines. In its Hydrogen Electrolyser segment, Nel is a global supplier of equipment and plants that produce hydrogen. It uses so-called alkaline water electrolysis and PEM water electrolysis technologies.

Ballard Power Systems (BLDP)

Fuel cells from Ballard Power Systems generate clean energy and provide energy solutions. As a result, BLDP stock has become a great deal at $15 per share in the current market.

Ballard Power Systems (BLDP) price chart

Last week, Tata Motors awarded the corporation a contract for 15 70-kilowatt "FCmove" fuel cell modules. An announcement by the company noted that the modules are going into zero-emission fuel cell electric buses. Indian buses will begin running by 2022.

In addition, the company has been earning good profits. Randy MacEwen, President and CEO of Ballard Power, said:

"In Q1, we surpassed our revenue goal of $17.6 million, realized a gross margin of 15%, and ended with $1.27 billion in cash reserves. However, Ballard's activity levels were high throughout the organization, despite the muted China market while awaiting future policy pronouncements. Indeed, on the commercial front, we saw unprecedented engagement across industry and customer segments."

BLDP has excellent potential as a stock to rise from its downturn, given its strong financial standing and venture into public transportation. In addition, investors looking to build a green energy portfolio may take advantage of the low share price.

Ian Cooper had no direct or indirect positions (direct or indirect) in any of the securities discussed in this article at the time of publication. InvestorPlace.com Publishing Guidelines apply to this article to represent the writer's opinion.

ITM Power

ITM Power produces electrolyzers, which are low-carbon methods of generating hydrogen gas. They use proton exchange membrane (PEM) technology. After completing the construction of its Gigafactory in Sheffield, the 20-year-old company intends to build another one once it reaches 60% capacity.

ITM Power price chart

ITM's share price quadrupled between April 3, 2020, and April 3, 2021, as investors responded to the company's plans for growth and the growing awareness of the utility benefits of hydrogen power.

Ceres Power

Ceres power is a leader in solid oxide fuel cell manufacturing and an environmentally friendly, cost-effective method of generating hydrogen. Based in West Sussex, the company has been listed on the AIM market since 2004 and has a market capitalization of more than £2 billion.

In recent years, the company has focused mainly on hydrogen production and partnered with several international brands to obtain funding and distribution channels as it expands production.

Ceres Power price chart

FuelCell Energy, Inc. (NASDAQ: FCEL)

FuelCell Energy, Inc. (NASDAQ: FCEL) is a significant player in the global hydrogen fuel cell market, providing cutting-edge fuel cell platforms that favor the development of clean energy sources.

Source pure energy platforms from FuelCell Energy, Inc. (NASDAQ: FCEL) can generate millions of megawatts of electricity, and it serves a wide variety of businesses and organizations, including utilities, municipalities, universities, government agencies, and a range of commercial enterprises.

FuelCell Energy, Inc. (NASDAQ: FCEL) price chart

On September 14, FuelCell Energy, Inc. (NASDAQ: FCEL) announced its financial results for the quarter ending July 2021. The company reported an EPS of -$0.04, beating expectations by $0.01. In addition, the company generated revenue of $26.82 million, exceeding expectations by $6.19 million.

FuelCell Energy, Inc. (NASDAQ: FCEL) has partnered with Toyota Motor Corporation (NYSE: T.M.) to supply the trucking company with 2.35 megawatts of electricity and 1.2 tons of hydrogen per day its fuel cell trucking operation.

Further, FuelCell Energy, Inc. (NASDAQ: FCEL) has expanded its agreement with Exxon Mobil Corporation (NYSE: XOM) to develop carbon capture technology. FuelCell Energy, Inc. is also working with the White House on clean hydrogen infrastructure.

According to the latest third-quarter results, D E Shaw holds 5.33 million shares worth $35.6 million, making him the largest shareholder of FuelCell Energy, Inc. (NASDAQ: FCEL). As a result, 19 hedge funds are long FuelCell Energy Inc. (NASDAQ: FCEL) in Q3 2021, increasing 14 funds from the previous quarter.

Plug Power Inc. (NASDAQ: PLUG)

Plug Power Inc. (NASDAQ: PLUG), a New York-based company, develops hydrogen fuel cells in electric vehicles to replace traditional batteries. In a research note on November 19, Morgan Stanley analyst Stephen Byrd noted that Plug Power Inc. (NASDAQ: PLUG) could grow its hydrogen production and electrolysis businesses quickly and capture market share within these segments. As a result, plug Power Inc. (NASDAQ: PLUG) now has a price target of $65, up from $43, and ratings of Overweight.

Plug Power Inc. (NASDAQ: PLUG) price chart

Plug Power Inc. (NASDAQ: PLUG) announced on November 23 that it acquired Applied Cryo Technologies, which specializes in the transportation, storage, and distribution of liquefied hydrogen and cryogenic gases. Plug Power Inc. (NASDAQ: PLUG) can now achieve its goal of producing 1,000 tons of green hydrogen per day by 2028 because of this acquisition.

Insider Monkey tracks hedge funds, and 20 hedge funds were bullish on Plug Power Inc. (NASDAQ: PLUG), with stakes totaling $360.4 million in the third quarter.

Plug Power Inc. (NASDAQ: PLUG) is one of the top hydrogen fuel stocks to buy today, along with FuelCell Energy, Inc. (NASDAQ: FCEL), Bloom Energy Corporation (NASDAQ: B.E.), Linde plc (NYSE: LIN), and Air Products and Chemicals, Inc. (NYSE: APD).

Bottom line

The right hydrogen stock could prove to be a good investment opportunity as we strive toward achieving net-zero emissions by the year 2050. However, hydrogen fuel cell vehicles and trucks are still in their early stages of development in the United States, Europe, and Asia.

Although it can't replace internal combustion vehicles because it relies on a similar process, it's a less expensive and more environmentally friendly alternative to natural gas.

It's fair to say that any company that succeeds in reliably producing green hydrogen power could gain a lot from the market. This industry has suffered barriers to growth in the past, but not all companies will succeed, so make sure you do your homework before investing.