Over the last two years, much of the developed world has started to see hydrogen as a key means of reducing carbon emissions. As a result, many companies and governments are investing tremendous amounts of money in developing the fuel, while other firms, such as airlines and freight shippers, are preparing to utilize it on a massive scale. Consequently, I believe that investors should look for a few promising hydrogen stocks to buy.

Recent developments support my thesis on hydrogen. For example, the U.S. Department of Energy recently indicated that it would push “key industries” to utilize hydrogen. Meanwhile Japan recently decided to devote $107 billion over the next 15 years to boost its output of the fuel by “six times… to 12 million tons by 2040.”

Here are three of the top hydrogen stocks to buy:

Bloom Energy (BE)

Bloom Energy (NYSE:BE) produces ” solid oxide fuel cells” that generate electricity. The fuel cells can be powered by ” hydrogen, biofuel or natural gas.” Additionally and more intriguingly, the company sells electrolyzers that produce hydrogen using 35%-45% less electricity than competing products. That’s because the electrolyzers can obtain a portion of their power from “excess heat and energy,” including excess heat and energy generated by solar power during the day.

With solar energy proliferating and the use of solar energy booming, the capabilities of Bloom’s electrolyzers are obviously very valuable. Moreover, its fuel cells are very versatile because they can be used to generate electricity using natural gas this year and then transferred to  being used in conjunction with hydrogen when the latter fuel becomes available.

In 2022, Bloom’s top line climbed to nearly $1.2 billion from $972 million in 2021, while its gross profits jumped to $257.6 million from $197.6 million.

The forward price-sales ratio of BE stock is an attractive 1.7.

Linde (LIN)

A global, thriving industrial gas company, Linde (NYSE:LIN) offers a wide range of hydrogen-related solutions. Among its products in the latter area are electrolyzers that develop products that enable vehicles to be fueled with hydrogen. Additionally, it also produces “hydrogen liquefaction systems” that can be used to turn gaseous hydrogen into liquid for transportation.

Last September, the company announced that it would create a “35-megawatt PEM (Proton Exchange Membrane) electrolyzer to produce green hydrogen in Niagara Falls, New York.” Powered by hydroelectric energy, the plant is expected to start producing green hydrogen in 2025.

Todd Lawson, the company’s Vice President, East Region said in a statement at the time:

“Linde is the largest liquid hydrogen producer in the U.S. and this new capacity will increase product availability at a time of growing demand from customers across several end markets, including aerospace, electronics and manufacturing. We will continue investing in green hydrogen projects to meet growing demand.”

Last year, Linde’s top line climbed to $33.35 billion, while its operating income advanced to $7.11 billion.

The shares are trading at a reasonable forward price-earnings ratio of 26, and they also feature a significant dividend yield of 1.4%.

Plug Power (PLUG)

Plug Power (NASDAQ:PLUG) is poised to become one of the world’s largest makers of green hydrogen and one of the biggest sellers of electrolyzers. The shares have been soaring in recent days, and multiple, large institutions bought significant amounts of its shares last quarter.

On the deal front, PLUG announced on June 7 that it would provide 8 megawatts of hydrogen fuel cells to Energy Vault (NYSE:NRGV), which will in turn provide it to Calistoga, California. The town will use it as a backup power source. The deal could lead more municipalities in California and other states to adopt similar agreements with PLUG.

In Q1, JPMorgan (NYSE:JPM) acquired 1.966 million shares of PLUG stock. Meanwhile Point72 Asset Management, the hedge fund led by Steve Cohen bought PLUG shares for the first time in Q1, acquiring 2.277 million of them. Among the other major institutions buying meaningful shares were State Street (NYSE:STT) and Morgan Stanley (NYSE:MS).

From May 17 to June 7, PLUG jumped nearly 30%. With the Street falling back in love, it’s clearly one of the top hydrogen stocks to buy at this point.

As of the date of publication, Larry Ramer owned shares of PLUG. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.