Plug Power (NASDAQ:PLUG) Consolidates After The Jump: What Next?
1:27 pm Monday, June 14th, 2021
The hydrogen fuel cell company Plug Power (NASDAQ:PLUG) has been on the radars of many investors for more than a year due to the continued push for renewable energy among policy makers.
However, more importantly, there are experts who believe that the company’s future is promising and that can be ascertained from the steady trickle of positive news. Earlier this month, the company announced that it is going to partner with French automobile giant Renault in a project focussed on developing vans that are propelled by hydrogen power. It is a major development for the company since such projects can also lead to significantly large contracts in the future.
However, the more important development was the endorsement of hydrogen fuel from the United States government earlier on this week. The government revealed that it is going to use the policy tools under its disposal to make hydrogen fuel more affordable.
Such an announcement from the Department of Energy is a major shot in the arm for companies like Plug Power and counts as an endorsement for its business. Jennifer Granholm, the Energy Secretary, spoke about the initiative known as ‘Hydrogen Shots’ and the government’s aims with regards to Hydrogen fuel.
The Department of Energy also stated that it is going to work towards policies that will help in reducing the cost of ‘green’ hydrogen by as much as 80%. The department estimates that such a cut is going to lead to a surge in demand by as much as 500%. In addition to that, the government is also looking to boost hydrogen fuel usage by way of the infrastructure bill.
It is clear to see that such policies are going to favour Plug Power if they come to fruition and hence, it could be argued that the company’s future could be considerably brighter in the years to come.
