I have been observing the trends of hydrogen energy concept stocks recently and found that this field is indeed worth paying more attention to.

Speaking of which, countries around the world are promoting clean zero-carbon emissions, and hydrogen energy is becoming increasingly important as a clean energy source. Last year, the U.S. Department of Energy announced the final rules for clean hydrogen production, clarifying a tax credit of up to $3 per kilogram, which is a significant positive for the entire industry. According to the International Energy Agency's report, global hydrogen demand is expected to reach 530 million tons by 2050, and the green hydrogen market was valued at about $1.1 billion in 2023, with a projected compound annual growth rate of 61.1%, reaching $30.6 billion by 2030. This growth rate is truly astonishing.

Looking at the performance throughout 2024, hydrogen energy concept stocks overall remain quite optimistic. The Morningstar Global Hydrogen Index recorded a 4.86% increase, although it lagged behind the broader market. After entering 2025, stock prices experienced quite a bit of volatility—initially facing shocks, then rebounding quickly. Recent market conditions suggest that there are still many opportunities in this sector.

If choosing individual stocks, APD (Air Products) is the world's largest commercial hydrogen supplier, with Wall Street analysts setting an average target price of $362.31; Plug Power, although it fell significantly last year, is a pioneer in hydrogen fuel cells, operating over 250 refueling stations in North America, with an average target price of $2.73; BP is advancing five to ten hydrogen projects worldwide, planning to produce 500,000 to 700k tons of low-carbon hydrogen annually by 2030.

Regarding Taiwan's hydrogen energy concept stocks, Chung Hsin Electric & Machinery has been quite active in the past two years. In 2024, their total revenue reached NT$25.61 billion, a 15.65% year-over-year increase, setting a new record high. They are investing in hydrogen refueling station construction, with expectations of further revenue and profit growth in 2025. Gaoli, as the main OEM supplier of Bloom Energy's fuel cell dust removal boxes, expects their plate-type heat exchangers business to grow by low double digits in 2025, and their fuel cell dust removal box business to grow by high double digits.

However, investing in hydrogen energy concept stocks also requires awareness of risks. Industry competition is intensifying, with more emerging companies entering the market to gain share, putting pressure on leading firms. For example, Plug Power's profits have been eroded by price wars. Additionally, hydrogen production costs remain a challenge; most still rely on fossil fuel-based methods, which makes hydrogen prices closely tied to oil prices. When oil prices rise, production costs also increase.

There are three main investment approaches: CFD trading offers high flexibility and leverage, suitable for short-term investors; traditional stock investing is relatively stable but requires more capital; fund investments can diversify risk, with hydrogen ETFs like HYDR and HJEN covering companies involved in hydrogen production, storage, transportation, and related equipment technology.

From an industry chain perspective, the three most noteworthy segments are upstream green hydrogen production, midstream storage and transportation, and downstream applications (especially transportation). The number and distribution of hydrogen refueling stations directly impact storage and transportation costs, and the transportation sector may be the largest growth area for hydrogen energy applications in the future.

In summary, hydrogen energy concept stocks indeed represent the future direction of energy. Government support is strong, and market demand is growing. But it’s important to select the right companies, focusing on their competitiveness in green hydrogen manufacturing, storage, sales, and application. Interested friends can start with ETFs or directly research listed companies making real progress in this field to see which ones align better with their investment logic.