What happened
Shares of hydrogen fuel cell maker Plug Power (PLUG +5.59%) continued a recent surge today with shares trading near the morning's highs for gains of about 2.6% as of 10:30 a.m. EDT. The company's stock has rallied nearly 10% since late last week.
So what
Investors are watching how the House of Representatives moves toward a vote on the bipartisan infrastructure bill that was already passed in the Senate. Plug Power has several green hydrogen production projects underway in the U.S., and passage of the bill could give the company a boost from additional federal support for alternative energy development.
Plug Power tankers at a hydrogen plant. Image source: Plug Power.
Now what
Plug recently broke ground on what will be its fourth green hydrogen plant. The Georgia facility will join an operating plant in Tennessee as well as facilities already under construction in south central Pennsylvania and western New York. The company plans to produce at least 500 tons of green hydrogen per day by 2025 to support its business in the transportation and logistics sectors.
The infrastructure plan passed by the Senate contains funds allocated for power infrastructure, public transit, and electric vehicles (EVs). Plug is trying to grow its participation in hydrogen fuel-cell EVs along with its hydrogen production goals.
Passage of the bill in the House remains uncertain, but there is more pressure on House Speaker Nancy Pelosi from centrists within her own party to vote on it sooner rather than later. Some investors are likely trying to get ahead of a final decision by investing in the alternative energy space, including with Plug Power.
