Recent U.S. policy shifts have jolted the green hydrogen sector. President Trump’s signing of the One Big Beautiful Bill has shortened the eligibility window for production tax credits on green hydrogen projects by five years. Consequently, this tax incentive will no longer apply to projects commencing construction after December 31, 2027. In response, German green hydrogen equipment manufacturer Thyssenkrupp Nucera announced plans to abandon “no longer feasible” U.S. projects.
However, cost remains the industry’s most significant hurdle. The technology—which uses renewable energy to produce fuel—is far more expensive than “gray hydrogen” derived from natural gas. Without government support, green hydrogen lacks commercial-scale competitiveness. Igor Isaev, Head of the Analytics Center at brokerage Mind Money, notes that the hydrogen economy stands at a “pivotal moment,” shaped by policies, infrastructure, and market readiness. While the industry is rising, challenges like high costs and insufficient manufacturing demand persist.
Despite this, the U.S. policy adjustment is not a death knell for green hydrogen. Instead, it may curb market hype, trigger industry consolidation, and ultimately allow truly resilient companies to emerge stronger. Whit Irvin Jr., CEO of cleantech firm Q Hydrogen, emphasizes that 2025’s key catalyst will be “true innovation”—breakthroughs enabling fundamentally superior hydrogen production and utilization methods.
With this outlook, these green hydrogen leaders warrant attention:
Another blue-chip stock, Bloom Energy uniquely spans both fuel cell and electrolyzer production—the twin pillars of green hydrogen. Its fuel cell systems operate on hydrogen, biogas, or natural gas, broadening its market reach until green hydrogen scales. Applications in utilities and transportation grant it an edge in two sectors under intense decarbonization pressure.
Ballard develops fuel cells for buses, trucks, trains, ships, passenger vehicles, and forklifts, positioning it as a decarbonized transportation enabler. In July 2024, it launched a restructuring plan targeting a 30% reduction in operating costs (from H1 2025 levels) and positive cash flow by late 2027. The strategy includes workforce reductions, portfolio simplification, cost-cutting, and margin-boosting pricing initiatives.
A blue-chip player in green hydrogen, Plug Power manufactures hydrogen fuel cells for electric vehicles and frequently headlines with its electrolyzer technology and refueling infrastructure plans. Its strong partnerships position it to capitalize if green hydrogen rivals battery-powered EVs—a plausible scenario given hydrogen vehicles’ longer range, addressing a key barrier to EV adoption: range anxiety.
Green hydrogen adoption accelerates faster in regions with high natural gas prices, including China, most of Europe, and South Korea. With the U.S. receding in green hydrogen development, Asian and European leadership is set to continue. FuelCell Energy is pivotal in South Korea’s expansion, generating over 100MW of sustainable power nationwide. As a fuel cell platform manufacturer, it sits at the core of the green hydrogen trend.
