Why Plug Power Stock Popped Today
The Nasdaq is rebounding Tuesday after last week's steep sell-off, and hydrogen fuel-cell company Plug Power (NASDAQ: PLUG) is joining in the fun, up 4.8% as of 10:25 a.m. ET. Plug is partly coming along for the ride along with the rest of the tech-heavy Nasdaq, but it's also benefiting from some news unique to the hydrogen industry -- and to Plug itself.
The reasons for Plug's gains today are a bit convoluted, so let's take them step by step. First, although Plug Power is currently unprofitable, CEO Andy Marsh says his company's growing "green hydrogen" business will become price-competitive with diesel (for powering trucks) once the price of such hydrogen falls to $6 or $7 a kilo.
Next, commodity intelligence firm ICIS today launched the world's first-ever service tracking the price of green hydrogen. ICIS calls this "clean hydrogen" or "renewable hydrogen," but basically, it's the same stuff Plug is referring to when it says "green hydrogen" -- hydrogen produced by renewable energy (such as solar and wind). According to ICIS, while the price of producing hydrogen by ordinary, non-renewable means has shot up to around $14.45 euros as natural gas prices surged in Europe, the cost of green hydrogen produced by offshore wind in Europe is ranging from $5.88 to $7.85 -- and as low as $4.67 in Spain.
Source Fool.com
