7 Best Hydrogen Stocks in the UK for 2025

Green hydrogen, produced by using renewable electricity sources like wind, solar, or hydroelectric power to split water (electrolysis), is rapidly gaining prominence in fighting climate change. The adoption of this clean fuel source is boosting hydrogen stocks in the UK and globally.

Hydrogen’s role as a clean fuel presents a significant growth opportunity for companies and a chance for investors to buy into a rising trend. Read on for our seven picks of the top UK hydrogen companies.

An in-depth look at these top hydrogen stocks 

All of the hydrogen stocks we picked have their headquarters in the UK and trade on the London Stock Exchange. Here’s a little more detail on each of them:

1. Linde: Great pick and shovel hydrogen play

Linde (LON:OM2B) makes a wide range of industrial gases, including atmospheric gases such as oxygen, nitrogen and argon, alongside specialty gases such hydrogen, making it a key player providing low-carbon intensity hydrogen options through its “Linde Green” program.

Its products are used in a variety of sectors such as chemicals and energy, food and beverage, electronics, healthcare, manufacturing, metals and mining. 

Linde has a plant underway that should double its carbon dioxide output in the US Gulf Coast, with a liquefaction plant expected to go online in 2027 in Freeport, Texas.

While it may not have the growth potential of some other UK hydrogen stocks, it has been consistently profitable, making it a safer play for many investors. Its shares are down more than 1% so far this year.

In the first quarter, Linde had revenue of $8.1 billion, up less than 1%. Earnings per share (EPS) rose 4.7% year on year to $3.51. The company said it expects full-year adjusted adjusted EPS to be in the range of $16.20 to $16.50, up 5% at the midpoint. The company has $7 billion in gas backlog projects.

An added bonus for Linde is its steady dividend growth. It has raised its dividend for 32 consecutive years, including an 8% increase this year to $1.50 per quarterly share, equaling a yield of around 1.29%, with a sustainable payout yield of 43.13%.

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2. Ceres Power Holdings: Huge growth in revenue, promising new licensees

Shares in Ceres (LON:CWR) are down more than 52% this year, despite growing revenue and the likelihood the company will be able to turn a profit in the near future.

The company has been able to license its technology to a growing number of businesses interested in its green hydrogen technology, including names like China’s Weichai and South Korea’s Doosan.

The company makes solid oxide electrolysis cells (SOEC) and solid oxide fuel cells. (SOFCs). SOECs are a type of electrochemical devices that use high temperatures to convert electrical energy into chemical energy, specifically by decomposing water vapour into hydrogen and oxygen.

SOFCs are fuel cells that use solid ceramic electrolyte to conduct oxygen ions. This electrolyte allows for a high-temperature operation, which makes it more efficient and can run on a variety of fuels.

In fiscal 2024, revenue jumped 132% from the previous year to £51.9 million. That climb was driven by a record £112.8 million in orders, following the signing of two manufacturing licensee partners, Taiwan’s Delta Electronics, to license its manufacturing stack production of both SOEC and SOFC cells, and Japan’s Denso to produce SOECs.

Orders from an electrolyser system partner, India’s Thermax Ltd., to produce SOECs also boosted revenue.

However, investors were disappointed to hear that the company expected 2025 revenue to be in line with 2024. The company will issue a detailed forecast in its July trading update.

It also hurt that the company’s contract with Bosch was terminated in February. It’s important to note Ceres it isn’t profitable yet. It did narrow its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) loss to £11.3 million after losing £50.3 million in adjusted EBITDA in 2023.

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3. EQTEC: Turning rubbish into hydrogen as it edges closer to profitability

Waste-to-gas company EQTEC (LON:EQT), which turns garbage into hydrogen and other fuels and materials, makes revenue from technology sales and services of its EQTEC-designed equipment and essential ancillary equipment.

Its shares are up more than 12% so far this year. The green hydrogen company is already seeing financial improvement from its shift away from developing its own high-capital projects to high-margin, intellectual property (IP)-rich services.

In its 2024 first half-report, it saw revenue rise to €1.45 million from €145,000, while gross margin increased to 50% from 15%, thanks to a greater amount of revenue from IP services. More than half of its revenue came from design engineering services.

The company is still losing money, but it trimmed its EBITDA loss by 16.7% from the same period last year to €1.60 million. Its net loss was €3.19 million, up from €2.42 million in the first half of 2023, but that includes €1.55 million of debt servicing and other financing costs, the majority of which were non-recurring. 

The concern about this UK hydrogen stock is there is growing competition in the waste-to-gas space and, of course, it isn’t profitable. However, the big positive is the company’s proprietary technology is already proven and that should help it scale up its operations more quickly than other companies.

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4. AFC Energy: Replacing diesel generators with clean energy power

AFC Energy (LON:AFC) has a lot of changes going on: a new CEO, a new joint venture and a stock that has climbed more than 56% this year. The appointment of new CEO John Wilson, effective at the start of 2025, comes shortly after AFC raised £15.8 million in two share issues.

It will use the proceeds to ramp up production for its joint venture with Speedy Hire, called Speedy Hydrogen Solutions, JV, which will rent out hydrogen fuel-cell-powered generators.

The projects earned it a spot on our list of the top UK hydrogen stocks. They have the potential to have a big impact in industries, such as construction and mining, that currently use diesel generators.

In its full-year 2024 report, the company said it had revenue of £4 million, rising 1,663% from the previous year, and a loss after taxation of £17.4 million, an improvement of 0.32% over 2023.

A potential game changer is that the company launched Hy-5, a first-of-its-kind portable hydrogen generation module under its Hyamtec brand. Set for delivery in 2026, Hy-5 is the world’s first containerized cracking module capable of manufacturing up to 1,100 pounds (500 kg) of hydrogen per day.

Looking at the company’s long-term prospects, there are plenty of opportunities for growth for its generators beyond construction and mining companies, especially with the growing need for power for electric vehicle charging, maritime applications and data centres. 

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5. BP: Oil and gas giant eyeing hydrogen in its future

London-based oil and gas company BP (LON:BP) is looking to continue to squeeze profits out of its legacy fossil-fuel operations whilst slowly improving revenue from its low-carbon efforts, including hydrogen. 

The stock is down more than 4% so far this year but that could easily reverse as the unrest in the Middle East could boost oil prices.

BP’s gas business includes upstream activities that produce natural gas, integrated gas and power, and gas trading. Its low carbon business includes solar, offshore and onshore wind, hydrogen and carbon capture and storage and power trading.

The stock is down around 3% this year and would possibly be lower be it not for persistent takeover rumors regarding competitor Shell.

In the first quarter, BP posted revenue of $46.46 billion, down 4% over the same quarter a year earlier. Profit fell 69% to $687 million. EPS was $8.25, down from $16.24 in the first three months of 2024.

BP continues to develop new oilfields while planning two crucial low-carbon hydrogen projects that would create sustainable aviation fuel and green hydrogen. These projects are carried out at its Castellon refinery in Spain, and a potential 100-megawatt (MW) green hydrogen plant in Germany.

The concern about BP is its revenue has been declining in recent years, its relatively large debt, and whether a legacy fossil fuel company can adapt quickly enough to a low-carbon world. A part of this is embracing green hydrogen.

BP does give investors a reason to be patient for a turnaround as it delivers an above-average dividend that has a yield of 6%.

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7. ITM Power: Hyperfocused hydrogen company ramping up production of electrolysers

ITM (LON:ITM) is an early mover in green hydrogen and has seen a huge rise in demand for its electrolyser systems. Investors are excited about the company’s potential as its shares are up more than 125% so far this year.

It has recently revealed that it had been awarded two new tentative green hydrogen contracts in the UK, to use its Poseidon core electrolysis process module to supply local industries with green hydrogen. This comes on the heels of ITM being chosen by Uniper for its 120MW Humber project.

The company, founded in 2000, was the first PEM electrolyser maker to be listed on the London Stock Exchange. The company sells four models of electrolysers, led by its lead product, the Trident, which is a 2 MW electrolyser skid.

In fiscal 2024, revenue was £16.5 million, rising 217% from a year earlier. Adjusted EBITDA loss was £30.4 million, an improvement of 68% over fiscal 2023. Next year, the company said it expects revenue to be between £18 million and £22 million. That doesn’t count some projects that won’t be completed until 2026.

The biggest concern for ITM is that it isn’t profitable, despite being in business for 25 years. However, the shift to a green economy is lifting demand for its products. ITM is hyperfocused on electrolysers, allowing it to improve margins as it ramps up production.

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7. Powerhouse Energy Group: Turning rubbish into hydrogen treasure

Powerhouse Energy’s DMG technology efficiently converts waste plastic, tires, and other materials into synthesis gas (syngas), mixtures of hydrogen and carbon monoxide, in various ratios, which can be used to create valuable products such as chemical precursors, hydrogen, electricity, and industrial goods.

Powerhouse Energy (LON:PHE) also offers engineering, testing, and ongoing customer support through its engineering arm, Engsolve. Its attractiveness as a UK-based hydrogen stock stems from its early mover status in localised energy recovery and industrial gas production from wastes.  

Though its shares are down more than 59% so far this year, the company is still in its early stages of growth. It needs to be noted that at such a small market cap (£21.93 million), and trading at under £0.49 a share, there’s plenty of risk concerned with Powerhouse, as there would be with any penny stock.

For 2024, it posted revenue of £499,414, an improvement of 176%, but its losses grew to £4.7 million from £1.4 million.

The company recently retooled its business strategy to focus on licensing fees, royalties and engineering services revenues. It has said it’s de-risking its business strategy to focus more on profitability, though the company isn’t likely to be profitable any time soon.

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Year-to-date performance of the UK’s top hydrogen shares 

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What are hydrogen stocks?

Hydrogen stocks are investments in companies involved in the production, storage, distribution, or utilisation of hydrogen. These companies play a pivotal role in the transition to a hydrogen economy, which aims to reduce reliance on fossil fuels and mitigate climate change. There are several types of hydrogen stocks.

The main types of hydrogen stocks

Hydrogen production companies:

• Electrolyzers: These companies produce hydrogen through electrolysis, a process that uses electricity to split water into hydrogen and oxygen.
• Reformer companies: These companies produce hydrogen from fossil fuels (like natural gas) through a process called reforming. While not as clean as electrolysis, they can be a stepping stone towards a hydrogen economy.

Hydrogen storage companies:

• Storage tank manufacturers: These companies design and produce tanks or containers for storing hydrogen, both at home and for industrial use.

• Underground storage companies: These companies utilise geological formations to store large quantities of hydrogen safely.

Companies involved in hydrogen distribution:

• Pipeline companies: These companies transport hydrogen through pipelines, connecting production sites to end-users like industries and power plants.
• Fuel cell companies: These companies manufacture fuel cells, devices that convert hydrogen into electricity.

Hydrogen End-Use Companies:

• Transportation companies: These companies use hydrogen as a fuel for vehicles, such as fuel cell cars, buses, and trucks.
• Industrial companies: These companies use hydrogen in various industrial processes, like steelmaking and ammonia production. There also are companies that use waste and turn it into green hydrogen.

Why invest in hydrogen stocks?

The growing global commitment from governments, businesses, and investors to combat climate change, largely driven by fossil fuel pollutants, highlights the growing demand for green hydrogen.

When pure hydrogen is used as a fuel, it combines with oxygen to produce only water, emitting no carbon dioxide. This makes green hydrogen companies crucial players in achieving net-zero emissions and transitioning to a clean energy economy.

According to a report by Global Market Insights, the global green hydrogen market was valued at $7.7 billion in 2023 and is anticipated to have a compound annual growth rate (CAGR) of 41.6% from 2024 to 2032.

Numerous large-scale projects are underway in Europe, North America, and the Asia-Pacific region, fueling industry demand. As electrolyzer technology advances, the cost of producing green hydrogen is projected to drop significantly, further driving industry growth.

How to invest in UK hydrogen stocks?

There are several ways to invest in UK hydrogen stocks. While there are risks, if you do your research, you can identify potential solid picks. If you look at market share, financial performance and technical advances, you’ll find gems.

Stock tip services and stock screeners can help you with your selection. It also helps to stay up on industry news, though, as the technology is evolving at a rapid rate.

Green energy ETFs

There are also green energy exchange-traded funds (ETFs) that invest in a basket of hydrogen-related stocks that could diversify your portfolio and de-risk it a bit. Once you’ve found a hydrogen stock or ETF, you need to set up an account with a broker, fund the account and then purchase stocks or ETFs.

Do I need to pay tax on dividend from hydrogen shares in the UK?

Yes, you still generally need to pay tax on dividend stocks in the UK. However, dividend stocks can deliver certain tax benefits. Some things to consider:

Dividend Allowance: You have a tax-free dividend allowance, which is currently £500 for the 2023/24 tax year. This means you can receive up to £500 in dividends without paying any tax.  

Tax Bands: The tax rate you pay on dividends depends on your overall income. If your income falls into the basic rate tax band, you’ll pay a lower rate on dividends than if you’re in the higher or additional rate bands.  

ISA Investments: Dividends from stocks held within an Individual Savings Account (ISA) are generally tax-free.

Pros and cons of investing in hydrogen stocks 

Hydrogen is the most abundant element on earth. It can be developed virtually anywhere, meaning it can create an independence from traditional supply chains to help countries reduce their reliance on fossil fuels and improve energy efficiency. 

Some of the pros to investing in hydrogen stocks:

• Government incentives: Because of hydrogen’s potential to reduce carbon gases, governments worldwide are offering tax breaks and other incentives.
• The UK Government’s Hydrogen Strategy target is to have up to 10 GW of low carbon hydrogen production capacity by 2030. At least half of this should be coming from electrolytic hydrogen production methods for clean hydrogen production.
• Significant emissions reduction: Green hydrogen production, when powered by renewable sources like solar or wind, emits no greenhouse gases. That makes it a good investment for the planet.
• Enhanced energy storage: Hydrogen can be stored efficiently for long periods, making it a valuable asset in balancing energy supply and demand.
• Decarbonization of energy systems: Green hydrogen can be used to power various sectors, including transportation, industry, and electricity generation, contributing to a more sustainable energy landscape.

Some of the cons to green hydrogen stocks:

• The need for a specialised infrastructure: Refining, storage, and distribution require specialised infrastructure that may not currently exist and can be expensive to develop.
• Safety concerns: Hydrogen’s flammability and low ignition point necessitate stringent safety measures for handling, storage, and transportation. This adds to the development costs for companies that are involved with hydrogen.
• Investment requirements: Significant investments are needed to develop and expand the necessary infrastructure and production capacity for hydrogen production.

Methodology: How we made our picks

We focused on companies involved with green hydrogen that are seeing improved revenue. It’s still a new technology, so many of the companies involved with green hydrogen aren’t profitable. However, the key for us was companies that had certain advantages going forward. Some of the factors we looked at:

Stock Performance: While historical performance can be a reference point, we looked at which companies could benefit in the future from government policies toward implementing hydrogen.

Earnings Growth: We focused on a company’s ability to generate revenue from hydrogen-related activities, even if it’s not yet profitable. We also assessed its potential for future earnings growth based on market trends and technological advancements.

Valuation: We considered the specific valuation metrics relevant to the hydrogen industry. For example, the price-to-book ratio might be more appropriate for companies with significant capital investments in hydrogen production facilities.

Market Share: We evaluated the company’s position within the UK hydrogen market. 

Competitive Advantages: We assessed each company’s unique selling points, such as proprietary technology, access to low-cost renewable energy, or strong partnerships.

Growth Catalysts: We identified specific catalysts for growth, such as upcoming projects, partnerships, or regulatory changes that could benefit the company.

Capital/Financial Strength: We evaluated the company’s financial health, considering factors like debt levels, cash flow, and funding sources.

Efficiency: We assessed the company’s operational efficiency, particularly in terms of energy consumption and production costs.

Leadership: We evaluated the experience and expertise of the company’s leadership in the hydrogen industry.

Analyst Estimates: We looked at the consensus among analysts covering UK hydrogen stocks but used their opinions as a supplementary factor rather than a sole determinant.

Best place to trade UK hydrogen stocks in 2025

FP Markets is one of the best brokers for trading UK hydrogen share CFDs. It offers one of the widest selections of trading instruments, including the stocks of many UK companies. The broker offers two platforms for trading stocks: direct stock trading through the IRESS platform, and trading stock CFDs on MetaTrader 4 or 5.

The platform also differentiates itself through its competitive pricing, with just a 0.1% commission on UK stocks per side and a minimum charge of 2 GBP. FP Markets also ensures a seamless user experience, from account registration to trading execution, and offers many educational resources, such as webinars, eBooks, and trading guides.

FP Markets is regulated by the European Securities and Markets Authority, ASIC, and CySEC, which ensures a high level of security for traders. It also provides prompt customer support that’s available 24/7 via live chat, email, and phone.

FAQs on UK hydrogen stocks