3 Reasons Why You Shouldn't Buy Fuel Cell Stocks Right Now
Fuel cell stocks' astronomical rise has surely captivated investors' attention. Among top fuel cell stocks, Plug Power (NASDAQ: PLUG) has risen the most. After rising more than 1,000% in 2020, the stock has already nearly doubled this year. While hydrogen fuel cell technology looks promising to reduce carbon emissions, it faces numerous obstacles in its widespread implementation. Here are three key reasons why jumping on the hydrogen bandwagon may not be the best idea right now.
Hydrogen fuel cells use hydrogen to produce electricity. Considering that the only byproduct of this process is water, it looks like the most environmentally friendly way to generate power. However, that isn't so. To begin with, the hydrogen fuel used is commonly produced through a process called steam reforming, which uses natural gas as input. As much as 95% of hydrogen in the U.S. is currently derived using natural gas. Due to the carbon emissions associated with this process, alternative ways to produce hydrogen are getting increased attention.
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Source Fool.com
