I've been observing how hydrogen is gaining prominence in the markets for a while, and honestly I believe it's profitable to invest in hydrogen if you do it wisely.

The energy transition is unstoppable. Governments are accelerating regulations against fossil fuels, and hydrogen is positioning itself as a key piece, especially for heavy vehicles where electric batteries still have limitations. Buses and trucks need viable solutions, and this is where hydrogen shines.

The interesting thing is that you can't invest in hydrogen as a raw material directly, like you would with oil. Instead, you need to look for companies betting on this technology. Some ETFs like Global X Hydrogen (HYDR) or Defiance Hydrogen (HDRO) group the best options, but if you prefer to be more selective, there are very solid companies.

Toyota and Hyundai are relatively safe bets because they don't rely solely on hydrogen. Toyota has been developing hydrogen vehicles for years while also dominating hybrids and EVs. Hyundai was a pioneer with its ix35 in 2013 and continues to innovate. Linde, the industrial gases giant, is a key provider of liquid hydrogen worldwide. FuelCell Energy specializes in fuel cells, and Hyzon Motors focuses on developing low-cost solutions to massify this technology.

Now, investing in hydrogen is profitable, but with nuances. Most of these companies perform well in the stock market, but each plays a different role in the production chain. Toyota and Hyundai have diversified exposure, making them more stable. Smaller fuel cell developers have greater potential but also higher risk.

The advantages are clear: zero CO2 emissions, better range than EVs in heavy vehicles, and it perfectly complements renewable energies for storing excess. Disadvantages also exist: complex distribution infrastructure, few hydrogen fueling stations, and the technology is still maturing.

My conclusion is that investing in hydrogen is profitable as part of a broader energy transition strategy, but not as a sole bet. The sector is diversified; some companies will lead, others will fall behind. Big names like Mercedes, Toyota, Hyundai, and BMW are committed, which provides confidence. The key is to identify which have the best technical and financial positioning for the coming years. If you're looking for sector exposure, combine established companies with emerging technology developers, but always keep in mind that you're betting on an industry still in development.