Recently, I’ve been keeping an eye on an interesting investment theme—hydrogen battery concept stocks. With the global push for net-zero carbon emissions, this area has genuinely attracted the attention of many investors.

Let’s start with the background. Driven by carbon-neutrality targets, hydrogen energy—representing clean energy—is becoming increasingly valued. Hydrogen battery concept stocks cover the entire industrial chain, from production, storage, and transportation to applications. These companies have plans in areas such as hydrogen fuel cell technology, hydrogen refueling station construction, and hydrogen production.

From the perspective of market performance, this sector is quite intriguing. The global hydrogen energy index didn’t rise much last year, but volatility is definitely there. Hydrogen battery concept stocks in the U.S. market experienced a lot of ups and downs earlier this year—first falling, then rebounding quickly. This volatility reflects investors’ mixed attitudes toward the sector—both optimism and caution—especially because many of these companies have been operating at a loss for years, mainly because the technology is still in a development stage and costs have not fully come down yet.

I’ve noticed several companies worth paying attention to. Air Products (APD) is one of the world’s largest commercial hydrogen suppliers. In the past year, its stock has risen by more than 50%, and Wall Street’s average target price is around $362. Plug Power has dropped significantly over the past year as well, but as a pioneer in the fuel cell field, it operates more than 250 hydrogen refueling stations in North America, with an average target price of $2.73. Traditional energy giant BP is also transforming, planning to produce 500,000 to 700,000 tons of low-carbon hydrogen annually by 2030.

There are also plenty of opportunities in Taiwan. NEXTRON has been involved in the hydrogen energy industry for years. It is expected to build multiple large hydrogen refueling stations by 2025, with orders close to NT$40 billion. Powertech is a major contract manufacturer of Bloom Energy’s fuel cell dust removal units; this year, it is expected that both the plate heat exchanger business and the fuel cell business will see solid growth.

Why is it worth focusing on now? First, policy support. The U.S. Department of the Treasury recently released tax credit policies for clean hydrogen production, offering up to $3 per kilogram—providing clear economic incentives for companies to invest in hydrogen projects. Second, there is huge market space. According to the International Energy Agency’s forecast, the global green hydrogen market will grow from $1.1 billion in 2023 to $30.6 billion by 2030, with a compound annual growth rate of more than 60%. Third, technological progress. Electrolysis technology is advancing, and the cost of renewable energy is declining—these factors are all pushing cost optimization across the industry in which hydrogen battery concept stocks operate.

But risks should also be taken into account. First is the cost issue. Although green hydrogen is the future direction, current production costs are still relatively high, and they are also affected by oil price fluctuations. Second is intensifying competition. As more and more companies enter this field, price wars are inevitable, which will directly erode company profits. Third is technological uncertainty. The hydrogen energy industry chain is still being improved, and infrastructure development takes time.

From an investment perspective, I think you can consider a few directions. First, invest directly in hydrogen battery concept stocks as individual stocks—this is suitable for investors who have confidence in specific companies. Second, invest indirectly via hydrogen ETFs, such as HYDR and HJEN. This helps diversify risk and capture the industry’s long-term returns. Third, focus on the two most growth-potential areas: upstream green hydrogen manufacturing and downstream transportation.

In summary, hydrogen battery concept stocks represent the direction of the energy transition, and the long-term outlook is positive. However, short-term volatility can be relatively large, so you need to be mentally prepared. It’s best to choose the investment approach based on your own risk preference and investment horizon. If you’re interested, you can look up the latest developments of these companies and the market trends of related assets on Gate.