Why Is Everyone Talking About Fuel Cell Stocks?
Hydrogen fuel cells have recently garnered lots of interest from policymakers, environmental bodies, companies, and retail investors. That has driven stocks of fuel cell companies, including Plug Power (NASDAQ: PLUG) and FuelCell Energy (NASDAQ: FCEL), to astronomical highs in the last couple of years. Investors looking for multibagger returns jumped onto the hydrogen bandwagon, adding to the momentum in these stocks. However, with the market realizing the many risks that fuel cell companies face, these stocks have seen a major correction in the last few weeks.
But what's behind the excitement? Let's take a closer look at the factors fueling the enthusiasm for hydrogen and fuel cells.
In 2018, the European Union came out with a strategic vision for promoting hydrogen as a fuel. It envisioned as much as 14% of Europe's energy coming from hydrogen by 2050. Europe has been advancing the use of clean energy for decades. In addition to climate change concerns, a key factor behind the union's push for clean energy is its dependence on oil and gas imports.
Source Fool.com
