Shares of stocks in the hydrogen fuel sector were up today. Plug hole (PLUG -6.19%) and Bloom Energy (BE -4.87%) both are positioning themselves to support the growth of hydrogen as a transportation fuel. Hyzon Motors (HYZN -3.67%) has struggled, but could also benefit from a boost in economy through expansion in this area. All three stocks rose 3% to 5.5% today on news that Europe is making a push in this area.
As of 2:45 p.m. ET, stocks had drifted higher along with the rest of the market when the Federal Reserve announced its interest rate hike. At that time, these shares traded as follows:
- Plug Power increased by 2.6%.
- Bloom Energy rose 5.1%.
- Hyzon Motors grew 4.7%.
The upward moves indicated that investors believed these companies would benefit from news that the European Commission – the executive arm of the European Union – has approved up to €5.2 billion (about €5.1 billion). dollars) of public funding for hydrogen projects. The decision is also expected to spur nearly $7 billion in additional private investment into the sector, according to CNBC.
Plug Power has been working to lead the charge in green hydrogen production in Europe and the United States In recent months, Plug has announced its largest European order for multi-site electrolysers for hydrogen production green. He also said earlier this summer that he had agreed to build a green hydrogen production plant in Belgium at Europe’s second-largest port. The port of Antwerp-Bruges is located in a central location in Europe less than an hour’s drive from Brussels. European leaders want to use hydrogen for maritime and rail freight transport.
The European Commission says the hydrogen infrastructure project is intended to support the construction of “large-scale electrolysers and transport infrastructure, for the production, storage and transport of renewable and low-carbon hydrogen “.
Bloom Energy is also counting on an expansion of hydrogen fuel infrastructure. This very week, he announced his intention to install an electrolyser at the Xcel Energy Prairie Island Nuclear Generating Station in Minnesota. Rick Beuttel, VP of Hydrogen Business at Bloom, said, “Hydrogen offers unparalleled potential for leveraging existing infrastructure for clean and abundant energy. This project should be operational in early 2024.
The growth of hydrogen economies does not mean that these companies will ultimately succeed. Hydrogen utility vehicle maker Hyzon, for example, recently announced a delay in its quarterly filing after discovering “operational inefficiencies” at its European joint venture plant. He 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 supporting the cultivation of hydrogen as a clean energy fuel is critical to the success of these companies. While other macro news tempered early gains today, the public funding announced yesterday in Europe is good news for investors in these names.
Howard Smith has positions in Bloom Energy Corp. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.