Analysts have been very bullish about investing in an area of clean energy: hydrogen. “Clean” hydrogen remains a “more compelling” decarbonization option than batteries when it comes to trucks, ships, trains and planes, HSBC said in an April 20 note. Clean energy has been gaining impetus with the U.S. Inflation Reduction Act, and some regard hydrogen as a renewable power source. Though clean hydrogen is expensive to produce and the industry is still in its infancy, and though not all types of hydrogen are equal , it has the potential to play an important role in tackling the climate crisis — the energy it creates produces no atmosphere-warming carbon dioxide. When hydrogen burns, it generates energy in the form of heat, with water as a byproduct. There are a few types of hydrogen. The cleanest type — green hydrogen — uses energy from renewable sources, while so-called blue hydrogen is produced from natural gas. Hydrogen in transport is increasingly focused on heavy-duty passenger segments and less so on passenger cars, according to HSBC analysts. “With hydrogen in transport expected to be deployed more widely from the latter half of the decade, exposure for the majority of large companies remains small, but offers the potential for future growth,” said HSBC. Stock picks In the note, the bank highlighted stocks that offer exposure to hydrogen in a variety of ways. They include areas such as electrolysers — a technology critical for the production of low-emission hydrogen — utilities, industrial gases, trucks and autos from markets in Europe and Asia. HSBC named 18 such stocks. Here are a few of them: Ceres Power : HSBC said Ceres, which makes green hydrogen electrolysers, has a “unique” solid oxide technology — a process that produces electricity directly from oxidizing a fuel. The bank gave Ceres a price target of £4.40 ($5.47), or potential upside of 30%. Longi Green : The bank says the Chinese company has the “potential to play a key role supplying the Chinese and global market with electrolysers, building on its leading positions as a wafer and module supplier.” It gave the stock a price target of 80.30 yuan ($11.60), or potential upside of 114%. Shell : HSBC says Shell is a major player in hydrogen refueling networks, with “ambitious growth plans in low-carbon hydrogen.” It gave Shell a price target of £29.20 ($36), or possible upside of 18%. Stellantis : Stellantis’ fleet of midsize vans includes fuel cell electric vehicles — which are powered by hydrogen. It aims to extend the use of FCEVs to its large vans in Europe and the U.S. in 2025, the bank said. HSBC gave the stock a price target of 21 euros ($23), or potential upside of 32%. — CNBC’s Michael Bloom contributed to this report.