The Three Best Bets in the Hydrogen Industry and Why They Stand to Make a Fortune

The excitement back in 2020 surrounding the potential for hydrogen, and the green energy sector as a whole, reached a fever pitch. Companies and governments around the world invested billions of dollars into various green energy initiatives, with the US and European nations leading the way. The hype came to a screeching halt in the following years due to high costs, a lack of current demand, regulatory and political uncertainty, and slower than expected development of necessary infrastructure.

The frank truth is that the majority of hydrogen initiatives have failed or been tabled for the time being. The industry is currently in its trough, with only 4% of announced hydrogen projects since 2020 still in effect five years later. While this may spell doom to many, savvy investors can find excellent opportunities after the dust settles.

The tides are indeed turning and a renewed energy behind hydrogen is emerging. The companies remaining stand to see substantial upside over the next few decades. Companies that weathered the storm of the past few years could make a killing as the hydrogen market is expected to balloon to $1.4 trillion annually by 2050.

Of the companies still forging the path forward in the hydrogen space, Plug Power (NASDAQ: PLUG), Bloom Energy (NYSE: BE), and Linde (NASDAQ: LIN) are three top picks to succeed long-term for investors.

Plug Power's lights are still on

Plug faced substantial liquidity issues in 2025, and the stock is down 79% from its high nearly 5 years ago. Still, Plug plugs on. The company raised $370 million in early October 2025 from a single institutional investor. The deal is structured so the investor can exercise up to $1.4 billion if necessary. This gives Plug the power to continue innovating and improving on its hydrogen fuel cell capabilities.

Plug made big bets on becoming a fully vertically integrated hydrogen producer. From electrolyzers to refueling networks, Plug still has a long way to go in successfully executing its vision. The bull case for Plug is that with partnerships with the likes of Walmart and Amazon , and an already established infrastructure, the company is well-positioned to win the race if green hydrogen demand expands as expected.

The company's biggest risk right now is its significant cash burn and heavy debt load. If Plug can execute, it stands to capture a large portion of the potential trillion-dollar market.

Image source: Getty Images.

Bloom Energy will continue to grow

Bloom Energy separates itself from competitors in that the company focuses on solid oxide fuel cells, a differentiation that gives it an advantage in regard to higher efficiency and fuel flexibility. Bloom has a proven hydrogen technology and is profitable on a non-GAAP basis. The company boasts solid revenue, with 2025 estimates reaching nearly $2 billion.

Bloom Energy is being adopted throughout the industrial world, but specifically excelling in supplying power solutions to data centers. As AI continues to explode, Bloom will be there to provide the needed energy. Bloom's downside is that the company's large valuation might not be totally justified by the actual financials. The ability to scale as quickly as the market expects is a difficult challenge.

Linde is a steady and lower-risk investment

You may wonder why one of the world's largest industrial gas suppliers is on this list of potential hydrogen plays. As it turns out, Linde uses hydrogen in many ways. Its main uses include supplying hydrogen to refineries and chemical plants, but the company is now using the element in clean energy projects. Linde is currently building green hydrogen plants in both the US and Europe.

If you're looking for a safer play in the hydrogen space, Linde is a great option. The company provides solid financial consistency including a dividend totaling $6 per share each year, and a diversified business that embraces clean hydrogen projects. Linde provides an avenue to invest in the future of hydrogen without as much risk and volatility as Plug or Bloom. The downside is investors won't find exciting or fast growth opportunities within this behemoth.

Hydrogen remains an uphill battle

Most hydrogen energy produced is still considered "dirty". Not all hydrogen is created equal, as some forms of production are cleaner than others. "Green", or completely clean hydrogen, made up just 0.1% of all hydrogen energy production as of 2023.

Hydrogen technology has a lot left to prove as far as commercial viability and cost effectiveness. There's also still plenty of improvement needed in shifting from dirty hydrogen energy production to clean. These issues will take time to resolve and an immense amount of capital.

Lastly, governmental policy remains a significant factor in the adoption of clean hydrogen around the world. More than 60 international governments have adopted hydrogen strategies, but not all are being implemented at the same speed or level of investment.

Options for hydrogen in portfolios

Depending on your risk tolerance and ability to stay invested over the next few decades, Plug, Bloom, and Linde are excellent long-term buys, ranging from very risky to fairly conservative, respectively. There are also still opportunities to buy these stocks at reasonable prices, as the rebound from the market downturn over the past few years still has a long way to go.

Catie Hogan has positions in Plug Power. The Motley Fool recommends Linde. The Motley Fool has a disclosure policy.