Credit Suisse says the "green" hydrogen sector is about to get a boost, and it's time to get invested. "Green hydrogen is a growth market," the bank said, describing it as an "essential" technology in reaching net-zero targets, as the world shifts toward renewables. It expects production to expand about 40 times by 2030, it said in a Sept. 23 report. Two stock picks As such, Credit Suisse thinks it's time to enter the sector — but stressed that it's important to be selective. It named two stocks it rated "outperform": U.K.-based Ceres Power and Italian firm Industrie De Nora . The bank said Ceres Power, which makes electrolyzers for green hydrogen, benefits from a "unique" licensing model which gives it the potential for the lowest unit costs and lower execution risks in the sector — thanks to its reliance on global blue chip manufacturers with mass manufacturing capabilities. It gave Ceres Power a price target of £12.50 ($13.20) — an upside of over 230% from Monday's close. Industrie De Nora, which makes components to produce green hydrogen, can benefit from tax incentives from the U.S. Inflation Reduction Act, Credit Suisse said. The bank added that the firm may continue to get orders above market rate, given its superior technology. Credit Suisse gave Industrie De Nora a price target of 21.50 euros ($20.75) — an upside of about 40% from Monday's close. Funding boost Credit Suisse said hydrogen is set to benefit from another wave of European funding, worth 5.2 billion euros ($5 billion). The European Union's executive arm, the European Commission, has said it wants 40 GW of renewable hydrogen electrolyzers to be installed in the EU by 2030. Electrolysis is one method of producing hydrogen. "We expect this demand is accelerated by meaningful policy support for the green hydrogen industry in both the US and Europe, especially as European nations look to alternative, reliable and sustainable energy supplies in light of the recent Russian invasion of Ukraine sending gas prices soaring," Credit Suisse said. Hydrogen is heralded by some as a renewable power source. It has the potential to play an important role in tackling the climate crisis — the energy it creates produces no atmosphere-warming carbon dioxide . On the flipside, it is a leak-prone gas that can generate its own warming effect — in turn worsening the climate problem — if not managed well . "Clean" hydrogen is also expensive to produce and the industry is still in its infancy. There are several types of hydrogen, including green, blue and gray. Some have recognized the environmental benefits of green hydrogen, but critics say it may not be an efficient source of energy , among other things. Nevertheless, Credit Suisse listed three factors that paint a more positive outlook for green hydrogen: Europe's latest funding rounds; the U.S. Inflation Reduction Act, which offers generous tax credits that makes green hydrogen more affordable; and the current low natural gas prices, which makes it cheaper to produce.