How to Invest in Fuel Cell Stocks

Fuel cell technology leverages the electrochemical energy conversion of hydrogen and oxygen to produce electricity, with water and heat as the byproducts. The process is clean, quiet and highly efficient, and the technology has many applications, notably in alternative fuel vehicles. A number of companies that manufacture fuel cells, their components or the vehicles that use them trade on the stock exchanges and can be a suitable option for investment.

Basis for Investment

Fuel cell stocks are the new investment frontier for the investor interested in a clean energy portfolio. Many fuel cell companies are reporting growth in product development and sales worldwide. Their success is attributable to years of research that has yielded more efficient cells that can store energy at high capacities and for longer periods. In addition, many automobile makers in the United States and abroad have been manufacturing fuel cell models.

Benefits and Challenges

By investing in fuel cell stocks, you will be promoting the use of alternative energy and helping drive the agenda for environmental protection and sustainable growth. The parent companies of stocks associated with fuel cell vehicles have a bright future based on government incentives and a growing market. They focus on reducing greenhouse gas emissions, minimizing oil dependence and producing less air pollution. However, this industry faces some challenges: Vehicle costs are still high and the infrastructure to get hydrogen to consumers is limited.

Fuel Cell Market Growth

Prospects for growth in the fuel cell sector are more promising. You have a wide choice when it comes to investing since there are several market segments on which the respective fuel cell stocks derive. The large stationary power segment deals with power stations designed for off-grid power generation while the small stationary power companies manufacture uninterrupted power systems. The motive power segment comprises those companies that manufacture fuel cell vehicles. The portable power industry includes auxiliary power units, personal electronics and fuel cell education kits.

Investing in Fuel Cell Stocks

Since fuel cells are just getting to the practical application stage for commercial and industrial customers, there are few companies that have public stock. You can invest in these alternative energy companies that design, develop and manufacture fuel cell products by purchasing their stocks via stock exchange platforms such as the NYSE or the Nasdaq. You may also buy stocks of those vehicle manufacturers that specialize in the development of fuel cell cars.

Photo Credits

  • John Foxx/Stockbyte/Getty Images

About the Author

Dr Jack Gordon, the Chief Technology Officer at Strontium Logistics, is a 20-year veteran of the engineering and marketing business who favors stiff drinks, good debates and developing innovative digital marketing strategies to help companies grow.

Zacks Investment Research

is an A+ Rated BBB

Accredited Business.