Fuel-cell stocks, such as Plug Power (PLUG) - Get Plug Power Inc. Report and Ballard (BLDP) - Get Ballard Power Systems Inc. Report, continued higher Wednesday after news of a partnership between Plug Power and Renault for hydrogen-powered vans in Europe.
In addition, Truist on Tuesday initiated coverage of Plug Power with a buy rating and a $60 price target. Investors are plowing funds into electric cars and related shares.
Plug Power recently traded at $67.45, up 2.2%; Ballard Power at $35.47, up 3.2%; and FuelCell Energy (FCEL) - Get FuelCell Energy Inc. Report at $19.08, up 0.2%. The shares slid off their highs amid profit-taking.
As for the Plug-Renault deal, the companies agreed to create a 50-50 joint venture focused on vehicle systems based on hydrogen fuel cells. The venture will include creating a fuel-cell stack and system manufacturing center in France for integration into light commercial vehicle platforms.
The joint venture will start commercializing fuel-cell light commercial vehicles in Europe starting in 2021 with pilot fleet deployments.
As for Truist, it said Plug Power can turn the ballyhoo over hydrogen-powered vehicles into real orders and profitability over the next three years, Bloomberg reports.
Ballard Power continued to benefit from Tuesday’s news that the company received a purchase order from Arcola Energy for its Ballard FC move-HD fuel-cell modules to power a passenger train planned for demonstration in November.
Scottish Enterprise, Transport Scotland and the Hydrogen Accelerator, based at the University of St. Andrews, named Arcola and a consortium of industry leaders in hydrogen fuel cell integration, rail engineering and functional safety to deliver Scotland's first hydrogen-powered train.