Since their closing at $1.78 on July 9, shares of Plug Power (PLUG 5.15%) had closed lower on each subsequent trading day, as of the end of yesterday's session. Today, however, they're poised to reverse that streak. Shares of the hydrogen and fuel cell specialist are moving higher today, thanks to some encouraging news for the hydrogen industry coming out of Europe.
As of 12:27 p.m. ET, shares of Plug Power are up 5.6%, retreating from an earlier climb of 9.2%.
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Plug bulls see opportunity on the other side of the pond
The European Commission, the executive arm of the European Union (E.U.), revealed its proposed financial framework for 2028 to 2034, and it includes a substantial increase in funding for the Connecting Europe Facility for energy to 29.9 billion euros from the current amount of 5.84 billion euros. In support of sustainable energy infrastructure projects, the Connecting Europe Facility for energy program recognizes hydrogen infrastructure as a potential part of the process to "further develop and interconnect energy networks in Europe [that] will make a key contribution to the energy transition."
Plug Power has a growing presence in Europe. In May, the company announced that it had delivered hydrogen from its Werlte facility located in Germany to the H2CAST Etzel project, a pilot project for large-scale underground hydrogen storage also located in Germany.
In 2022, Lhyfe, a European leader in hydrogen production, placed an order with Plug Power for 10 of its 5-megawatt electrolyzer systems. At the time, it represented the largest electrolyzer order placed by a French company.
Will the EU's announcement move the needle for Plug?
Plug investors often jump at any news hinting at the growth of the hydrogen industry, and they're likely speculating Plug stands to benefit from the European Commission's planned increase in funding. While the new budget allocation is a positive sign, it's hardly enough to justify buying Plug stock right now. Better yet, potential investors should tune in for Plug Power's reporting of its second-quarter 2025 financial results for greater insights into the business.
