What happened
Companies working to develop hydrogen as a fuel source have come under more focus recently as the Russia-Ukraine conflict stresses energy supplies and boosts prices. Investors bid several of those company stocks up again today, with shares of Nikola (NKLA -3.23%), Plug Power (PLUG -1.25%), and Bloom Energy (BE -0.93%) all jumping between 5% and 7% at the day's highs. As of 3:35 p.m. ET, Nikola, Plug, and Bloom Energy stocks were still up 3.6%, 5.5%, and 2.5%, respectively.
So what
Nikola's stock bounce comes ahead of the analyst day it will be holding tomorrow. Its investor day will follow that on Thursday. Those analysts and investors are likely to hear more on the progress it is making in commercializing its battery electric vehicles (BEVs) this year. But Nikola is also on a parallel course to develop hydrogen fuel cell electric vehicles (FCEVs), as well as the hydrogen production and fueling infrastructure that market will need.
Image source: Getty Images.
The timing of the update coincides with heightened concerns over energy supplies and what role hydrogen and other alternative energy sources can have in creating energy independence for many countries. Russia's invasion of Ukraine has brought particular attention to Europe, where Nikola has a joint venture manufacturing plant. Plug Power and Bloom Energy are also expanding internationally in the form of both partnerships and growing customer sales.
Now what
Nikola's manufacturing facility in Ulm, Germany, has completed construction, and the company expects 25 semi trucks to be built and delivered to the Hamburg Port Authority this year. The plant currently is rated for annual capacity of 2,000 trucks and is expandable to 10,000 trucks per year.
Plug has a partnership with French automaker Renault to supply Europe with fuel-cell-powered light commercial vehicles. Renault CEO Luca de Meo has said the facilities in France will provide "a unique end-to-end fuel cell value chain and offer turnkey solutions for customers including vehicles, refueling stations and decarbonized hydrogen delivery."
Bloom Energy is expanding its international business even faster than its domestic business. Overall revenue grew 22.4% in 2021 compared with the prior-year period, and its international revenue made up 38% of its total sales. That was up from 35% in 2020.
As the conflict in Ukraine strains Europe's energy supplies and pushes its leaders to focus more on energy independence, hydrogen will be looked at to play an increasing role. This is a long-term story suitable for aggressive investments due to the risks. But these three companies have plans in the works to make hydrogen a viable, and profitable, fuel source for transportation and beyond.
