Goldman predicts clean hydrogen will be a $1 trillion market. Here's how to play it.

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Goldman Sachs predicts clean hydrogen will be a $1 trillion market, expressing optimism about several clean energy companies.

In the race to reduce global carbon emissions to zero, clean hydrogen is increasingly expected to be a winner. Hydrogen is the most the most abundant elements in the universe, and has long been looked to as part of the solution as the world shifts away from fossil fuels. But the path to its use has been riddled with obstacles.

mountain Shares of First Solar have skyrocketed more than 120% in the past year. The IRA includes a hydrogen production tax credit of a maximum $3 per kilogram if hydrogen is produced without releasing any carbon emissions. Experts say the tax credit makes nuclear hydrogen highly competitive with fossil fuel produced hydrogen, as companies can look to make clean hydrogen without losing any money. The U.S.

mountain Plug Power shares are up more than 34% so far this year, but the stock has lost most of the gains it saw in the past six months. In the current recessionary environment, Goldman expects Baker Hughes shares are a defensive play. The company may wind up operating in several segments of the hydrogen supply chain, including storage. Goldman analyst Neil Mehta said its exposure to liquefied natural gas and continued expansion into industrial energy technologies are strengths.

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