Shares of stocks in the hydrogen fuel sector were on the rise today. Plug Power (PLUG -1.96%) and Bloom Energy (BE 0.22%) are both situating themselves to support the growth in hydrogen as a transportation fuel. Hyzon Motors (HYZN 2.97%) has been struggling, but could get a saving boost from expansion in that area, too. All three stocks were higher today by as much as 3% to 5.5% on news that Europe is making a push in that domain.
As of 2:45 p.m. ET, the stocks had drifted from higher levels along with the rest of the market when the Federal Reserve announced its interest rate hike. At that time, these stocks were trading as follows:
- Plug Power was up 2.6%.
- Bloom Energy was up 5.1%.
- Hyzon Motors was up 4.7%.
The moves higher indicated investors felt these companies would benefit from news that the European Commission -- the executive arm of the European Union -- approved as much as 5.2 billion euros (about $5.1 billion) in public funding for hydrogen projects. The decision was also expected to prompt up to nearly $7 billion in additional private investment in the sector, according to CNBC.
Plug Power has been working to lead the charge in producing green hydrogen in both Europe and the U.S. In the last several months, Plug has announced its largest multi-site European electrolyzer order for the production of green hydrogen. It also said earlier this summer that it has agreed to build a green hydrogen generation plant in Belgium at the second largest port in Europe. The Port of Antwerp-Bruges sits in a central location in Europe less than an hour's drive to Brussels. European leaders want to utilize hydrogen for the transportation of maritime and rail freight.
The European Commission says the hydrogen infrastructure project is meant to support building "large-scale electrolyzers and transport infrastructure, for the production, storage and transport of renewable and low-carbon hydrogen."
Bloom Energy is also counting on an expansion in hydrogen fuel infrastructure. Just this week it announced plans to install an electrolyzer at the Xcel Energy Prairie Island Nuclear Generating Plant in Minnesota. Rick Beuttel, Bloom's vice president of hydrogen business, stated, "hydrogen offers unmatched potential to leverage existing infrastructure for clean, abundant energy." That project is expected to be in operation in early 2024.
Growing hydrogen economies doesn't mean these companies will ultimately be successful. Hydrogen-powered commercial vehicle maker Hyzon, for example, recently announced a delay in its quarterly filing after it discovered "operational inefficiencies" at its European joint venture facility. It also subsequently appointed a new CEO. It now has until Oct. 14 to file that report and remain in compliance with the Nasdaq Stock Market.
But support for growing hydrogen as a clean energy fuel is critical for these businesses to prosper. While more macro news tempered early gains today, the public funding announced in Europe yesterday is good news for investors in these names.