Why Plug Power, Bloom Energy and Clean Energy are fueling soaring stocks today


What happened

Hydrogen stocks made big moves on Thursday as investors clean energy stocks higher after big industry news grabbed the headlines even as President Joe Biden introduced a watered-down infrastructure bill on Capitol Hill. At 2:20 p.m. EDT, shares of Connect the power (NASDAQ: PLUG), Flowering energy (NYSE: BE), Clean energy fuels (NASDAQ: CLNE) traded up 11.6%, 8.3% and 8.5% respectively.

So what

Aviation company ZeroAvia has just announced that it is developing a 19-seater aircraft that will fly “entirely on hydrogen”, the first commercial passenger flight of its kind to fly between the UK and the Netherlands by 2024.

ZeroAvia said it had partnered with Royal Schiphol Group, Rotterdam The Hague Innovation Airport Foundation and the airport itself for the project, and was already in advanced talks with airlines to find an operator for the planned route between Rotterdam The Hague Airport and London. .

The announcement came just a day after ZeroAvia said it had collaborated with Alaska Air Group to develop a hydrogen-powered electric powertrain for a 76-seat passenger aircraft with a range of 500 miles.

Image source: Getty Images.

Although ZeroAvia already performed a hydrogen fuel cell test flight last year, the outlook for hydrogen-powered commercial aircraft flying in just three years reflects the exponential potential of the industry. green hydrogen. Aviation, by far, is one of the most difficult industries in the transportation sector to decarbonize, with some major airlines even believing that a sustainable fuel that could potentially replace jet fuel may not see the light of day until the end of the decade. this decade.

Investors in stocks that are into hydrogen and fuel cell technologies saw today’s news as a great signal to pull the trigger, especially in stocks that have already been in the market. honor lately.

Bloom Energy stocks, for example, exploded earlier this week after the company announced an agreement with the South Korean group SK’s subsidiary, SK ecoplant, to sell fuel cells that could generate revenues worth $ 4.5 billion between 2022 and 2025. With Hydrogen fuel cell servers that provide uninterrupted power supply, Bloom Energy’s products have some of the largest potential scopes in the hydrogen market.

Plug Power is also emerging as a key player in the industry, with its recent moves visibly reflecting the company’s efforts to expand beyond the forklift market. For example, Plug Power signed several offers in recent weeks with companies from different parts of the world, including one yesterday in Europe. Notably, most of the deals revolve around the advancement of hydrogen technology in the transportation sector, which could also explain the big move in Plug Power’s shares today.

Clean Energy Fuels, on the other hand, is fully dedicated to the manufacture of renewable transportation fuels, in particular renewable natural gas. But just earlier in October, the company landed its first contract to supply hydrogen fuel and build a hydrogen station for a bus service company in Southern California. So it’s no surprise that shares of Clean Energy Fuels also surged alongside hydrogen shares on Thursday.

Now what

On Thursday, Biden also presented a $ 1.75 trillion infrastructure bill focusing on child care, health care and clean energy, among others. He offered to spend more than $ 500 billion on clean energy initiatives, and although there is nothing more now than a simple proposal, clean energy investors were nonetheless excited because it ended speculation that Biden potentially abandoned his clean energy proposals to win. votes to adopt a infrastructure bill.

With hopes renewed on a bill even as interest in alternative fuels like hydrogen noticeably accelerates, investors have wasted no time betting money on hydrogen stocks.

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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool recommends Alaska Air Group and Clean Energy Fuels. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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