Government-Backed Hydrogen Boom: Why These 3 Public Hydrogen Companies Are Positioning for Massive Growth

The hydrogen economy is shifting from theoretical to tangible. With governments worldwide committing unprecedented capital to green hydrogen infrastructure, savvy investors are watching which public hydrogen companies will capture this moment. Let’s break down the opportunities and the players positioning themselves to lead.

Why the Hydrogen Wave Is Happening Now

The hydrogen industry is projected to grow at a 7.1% compounding annual growth rate through 2040—but the real momentum comes from policy, not just demand. The U.S. Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA) represent the largest government mobilization around hydrogen since the space race. McKinsey estimates total hydrogen demand could reach 660 million tons by 2050, potentially offsetting over 20% of global emissions.

This isn’t theoretical anymore. Governments are allocating billions in production grants, regional hydrogen hub funding, and technology development support. For investors, this means the companies positioned closest to government incentives will outperform.

Plug Power: Betting on Federal Alignment

Plug Power (NASDAQ: PLUG), founded in 1997 and headquartered in Latham, New York, has evolved from a hydrogen fuel cell specialist into a key beneficiary of federal hydrogen policy. Its GenDrive system—developed alongside Ballard Power Systems (NASDAQ: BLDP)—solves a real problem: batteries are slow to recharge and inconsistent. Hydrogen fuel cells offer rapid turnaround and stable output, making them ideal for material handling and commercial vehicle fleets.

Here’s what matters: Plug Power isn’t just operating in the hydrogen space—it’s embedded in the U.S. National Clean Hydrogen Strategy and Roadmap. This alignment translates to direct federal support. The IIJA specifically funds hydrogen electrolysis infrastructure, the exact technology powering Plug Power’s systems. Regional hydrogen hubs receiving federal backing will likely source from Plug Power or similar providers.

The company’s edge is regulatory certainty. As Washington pushes toward net-zero commitments, companies integrated into the official hydrogen roadmap get first access to capital and favorable operating conditions. Plug Power exemplifies this dynamic.

Air Products and Chemicals: The Infrastructure Incumbent

Air Products and Chemicals (NYSE: APD) operates differently—it’s the infrastructure play. With over 100 hydrogen plants globally producing more than 3 billion standard cubic feet daily, APD is already the hydrogen backbone of industrial operations worldwide.

The company is scaling aggressively with government backing. Canada provided CAD 475 million toward APD’s CAD 1.6 billion net-zero hydrogen facility. More impressively, APD is executing the world’s largest hydrogen energy project in Saudi Arabia, on track to produce 600 tonnes of carbon-free hydrogen daily by 2026.

What separates APD: it’s not chasing hydrogen—it’s already running the infrastructure. Its 20% net profit margin shows the economics work at scale. As governments invest in hydrogen hubs, APD becomes the utility provider. This positions the company to capture both growth and steady cash flows, a rare combination in emerging energy sectors.

Nel ASA: The Global Outsider With Regional Wins

Nel ASA (OTCMKTS: NLLSF), a Norwegian company headquartered in Oslo, specializes in PEM electrolysis—the technology for producing green hydrogen from renewable energy. Unlike the other two, Nel operates more globally and was recently selected to build a massive electrode manufacturing facility in Plymouth Charter Township, Michigan.

The Michigan bet is telling. The state committed $50 million in support to Nel, including a $10 million grant and $6.25 million in long-term tax benefits. Why? The partnership brings General Motors (NYSE: GM) into the hydrogen ecosystem—a signal that major industrial players are betting on hydrogen fuel cells for commercial applications.

Nel’s opportunity is different: instead of operating hydrogen plants or developing fuel cells, it’s building the production capacity that governments are funding. As regional hydrogen hubs scale, manufacturers like Nel that can produce the infrastructure become chokepoints. Limited competition, government backing, and strong demand profiles position Nel as a contrarian pick in the public hydrogen companies space.

The Real Play: Follow the Policy Capital

The unifying thread: government capital is flowing, and these three companies are positioned at different points in the hydrogen value chain. Plug Power benefits from federal alignment. APD dominates the infrastructure layer. Nel captures manufacturing capacity.

For investors seeking exposure to this shift, the hydrogen sector offers a rare combination: real technology, proven economics, and explicit government support. The companies executing closest to policy mandates will outperform. These three represent the core plays in a sector poised for acceleration as policy becomes reality.