Hey there! We're fans of hydrogen production. There's no doubt it's going to play a huge role in greener forms of energy.
However, it's very important to note we are a very long ways away from a true end-to-end hydrogen supply chain. The industry is highly volatile, speculative, and the winners in the next couple decades will be hard to pick.
Right now though two stocks that you should keep and eye on are realistically Ballard Power, one of the largest hydrogen fuel cell companies and Loop Energy, which is actually a very recent IPO.
Both of these stocks are trading at significant discounts to their highs in 2021. But it's important to note that there was somewhat of a speculative euphoria when it came to hydrogen stocks.
There is also another company, but it remains just as speculative in Xebec Adsorption. The company does offer hydrogen purification systems. However, it was recently caught up in some accounting issues and was overstating revenue. So, it remains very much a "show me" stock, and will need to perform.
It's hard to argue that in Canada, Ballard Power is likely to be your best bet if you MUST have exposure. But it's important to note, the company is not as expensive as it once was, but this is a stock that is still trading at a very hefty premium, over 56 times forward sales and 40 times forward earnings.
Tread cautiously in the sector, as I expect some significant volatility.