What happened
Fuel-cell stocks are flying higher today, building upon the momentum they've carried so far this month. This morning, Plug Power (PLUG 1.46%), Bloom Energy (BE 3.36%), and FuelCell Energy (FCEL 6.93%) surged within minutes of the market's opening, gaining at least 5% each, with FuelCell energy shares even crossing the 10% mark.
The stocks cooled off a bit as the day progressed but were still trading up as of 12:26 p.m. EDT. Plug Power and FuelCell Energy were up 4.7% and 5.7%, respectively, while Bloom Energy was up about 1% at that point in time.
This morning, Plug Power announced the start of construction at a hydrogen plant. That may not sound like a big deal, but with management stressing how the new plant is entirely a "result of increasing demand," investors in other hydrogen fuel-cell stocks took a cue and sent the shares higher. With the Senate also finally passing a $1 trillion infrastructure bill on August 10, investors in clean energy had a lot to be excited about.
So what
Plug Power is investing $84 million on a new plant in Georgia, which is expected to produce 15 tons of liquid green hydrogen per day using 100% renewable energy. It should be complete by the end of this year. Chief Strategy Officer Sanjay Shrestha elaborated:
Plug Power's newest production plant is a result of increasing customer demand. More and more, customers are expressing their commitment to green hydrogen solutions. This Georgia plant is an important step for developing North America's first force-majeure resilient green hydrogen supply network. This helps Plug Power, our customers and, more importantly, the broader hydrogen economy.
Image source: Getty Images.
Plug Power is targeting production of 500 tons of hydrogen per day by 2025, which is why it has announced three plants just this year. It includes one in New York, which is also touted to be North America's largest green hydrogen facility.
Just days ago, Plug Power delivered record second-quarter numbers including 83% growth in year-over-year revenue. Importantly, the company raised its full-year estimates for gross billings to $500 million, representing 50% growth over 2020.
Bloom Energy reported a record second quarter, as well, with revenue growing 21.6% year over year. FuelCell Energy was an outlier as it reported a decline in its second-quarter revenue, but the company is increasing its production rate to meet higher demand.
FuelCell Energy shares rocketed on August 9 after the company secured $15 million in funding to finance a fuel-cell project that it considers a "milestone" project. With Plug Power emphasizing the rise in demand for fuel cells today, FuelCell Energy shares continue to rise.
Now what
With the world slowly but gradually transitioning to clean energy, hydrogen fuel cell technology has tremendous potential. Most research firms predict the fuel-cell market will grow at double-digit compound annual rates in the coming years. With President Joe Biden's comprehensive infrastructure bill also proposing significant investments into clean energy, including hydrogen, and inching closer to being signed into law, investor interest in fuel-cell stocks is bound to remain high.
