Plug Power Stock (NASDAQ:PLUG)
Hydrogen fuel-cell startup Plug Power stock is up 4.8% as of 10:25 a.m. ET on Tuesday, following the Nasdaq’s recovery from last week’s sharp sell-off. Plug Power stock is riding the wave created by the rest of the tech-heavy Nasdaq. Still, it’s also getting a boost from developments specific to the hydrogen business and Plug itself.
What’s the Reason?
Plug Power stock advances today are due to a few different factors, and understanding each requires some backtracking. First, although Plug Power (NASDAQ:PLUG) is now losing money, CEO Andy Marsh claims that if the price of “green hydrogen” drops to $6 or $7 per kilo, it will be competitive with diesel (for powering trucks).
Next, ICIS, a global leader in commodities information, has introduced the first-ever service for monitoring the cost of eco-friendly hydrogen worldwide. ICIS refers to this as “clean hydrogen” or “renewable hydrogen.” Still, it’s the same thing that Plug means when it talks about “green hydrogen” (such as solar and wind). Green hydrogen generated by offshore wind in Europe is priced between $5.88 and $7.85 and as low as $4.67 in Spain, whereas the cost of manufacturing hydrogen using conventional, non-renewable methods has risen to roughly 14.45 euros due to the spike in the price of natural gas in the region.
At least in European markets, green hydrogen has now surpassed the cost of conventional hydrogen. It has surpassed Plug Power’s stock target price in at least one national market.
This is the last missing component. Off the coast of Saint-Nazaire, France, Plug and local green hydrogen firm “Lhyfe” have announced plans to build a 1-megawatt hydrogen electrolyzer facility powered by offshore wind.
It would seem that Plug Power (NASDAQ:PLUG) has located a market in which it has a decent chance of turning a profit from the generation and sale of environmentally friendly hydrogen, rapidly expanding into that sector. The project’s success or failure will determine whether or not Plug can finally end its decades-long streak of financial losses. In this case, Plug is acting rationally in its quest for profit. This is fantastic news for Plug Power stock shareholders.
Featured Image- Megapixl @ Rafaelhenriquepress