2 US Government-Approved Hydrogen 'Pure Players' That Will Boost Your Portfolio

• Hydrogen is a promising clean energy source
• The U.S. Department of Energy recently designated companies to receive federal funding for hydrogen development.
• The two stocks we will discuss in this article are hydrogen 'pure players' set to benefit from it
• Secure your Black Friday gains with InvestingPro 's up to 55% discount!

In a world navigating the shift towards cleaner energies, recent disruptions in fossil fuel markets triggered by the conflict in Ukraine have prompted nations to reassess their reliance on natural gas and oil.

Amid the exploration of various alternative energy sources, hydrogen emerges as a particularly promising yet underdeveloped option. Unlike traditional fuels, hydrogen's combustion leaves no greenhouse gases, producing only water vapor as a byproduct.

However, the challenge lies in its limited availability in easily extractable forms, coupled with the fact that current production methods often involve greenhouse gas emissions, preventing it from achieving economic competitiveness on the scale needed to rival fossil fuels.

US Government Commits to Hydrogen/h2

However, this could change in the years to come. Last month, the US Department of Energy (DoE) designated a number of companies to receive a $7 billion package, a long-awaited announcement of an initiative to accelerate the commercial-scale deployment of clean hydrogen and bring down its cost.

Indeed, the production of clean hydrogen costs around $5 per kilogram, and the U.S. Department of Energy aims to bring the cost of clean hydrogen down to $1 per kilogram over the next decade.

Funded by the Infrastructure Investment and Jobs Act (IIJA), the initiative plans to create seven H2Hubs across the U.S., laying the groundwork for a nationwide network of clean hydrogen producers, consumers and connecting infrastructure. Each hub will include elements of clean hydrogen production, storage, delivery and end-use.

Among the companies that will benefit from the financing are companies with a wide range of profiles, such as major oil companies like Exxon Mobil Corp (NYSE:XOM) or Chevron Corp (NYSE:CVX), but also power companies like Dominion Energy Inc (NYSE:D), or industrial companies like Chemours Co (NYSE:CC) or Rockwell Automation Inc (NYSE:ROK).

However, the financing will also benefit 2 hydrogen "pure players", Plug Power (NASDAQ:PLUG) and Bloom Energy Corp (NYSE:BE).

In the remainder of this article, we'll take a closer look at these two stocks, providing you with more details on their activities and potential, based on

Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counsel or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple points of view and is highly risky and therefore, any investment decision and the associated risk remains with the investor.

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Written By: Investing.com