What happened
After falling yesterday, shares of Plug Power (PLUG 2.62%) are roaring back today as the pessimism that plagued the fuel cell specialist's stock on Wednesday seems to be waning. The catalyst for today's movement appears to be news that the company is progressing in its plans to develop a green hydrogen production facility in its home state of New York.
As of 10:25 a.m. EDT on Thursday, shares of Plug Power were up 5.7%.
A hydrogen refueling station. Image source: Getty Images.
So what
Taking an important step toward expanding beyond its core competency, fuel cell manufacturing, Plug Power has begun construction on a green hydrogen plant in Genesee County, in western New York State. The plant, which will service freight and logistics customers throughout the Northeast, is expected to achieve daily production of 45 metric tons and is characterized as the largest green hydrogen facility of its type in North America.
At the event celebrating the start of construction, Democratic Sen. Chuck Schumer lauded the company: "Plug Power will be instrumental in establishing Genesee County as the next global hub for the clean energy industry. Plug Power is at the forefront of green hydrogen innovation, and their work is vital to the success of both New York's economy, and to the future of clean energy."
Plug Power hopes to develop seven hydrogen plants throughout North America by 2022. In addition, the company is targeting daily green hydrogen production of 500 tons by 2025 and 1,000 tons by 2028.
Now what
Considering how investors are quick to latch on to any positive news regarding Plug Power, it's unsurprising that the stock is rising today. Prospective investors, however, should be cautious about following the herd and buying shares of this niche renewable energy stock today. While the construction of the green hydrogen facility is noteworthy, it remains to be seen if there will be enough customers eager to purchase the hydrogen it produces, making it a lucrative endeavor.
