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FuelCell, Plug Power Stocks Rise as Senate Passes Infrastructure Bill

Hydrogen stocks FuelCell and Plug Power rise Tuesday as the Senate passes the $1 trillion infrastructure bill that provides aid to the hydrogen industry.
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Hydrogen stocks, such as FuelCell Energy  (FCEL) - Get FuelCell Energy, Inc. Report and Plug Power  (PLUG) - Get Plug Power Inc. Report rose Tuesday, as the Senate passed the $1 trillion infrastructure bill that offers billions of dollars of aid to the hydrogen industry.

Under the legislation, the federal government would create a clean hydrogen strategy and invest billions of dollars to lay the foundation for a nationwide hydrogen network, according to S&P Global Market Intelligence.

"The Energy Department would take new steps to deploy hydrogen technology and facilitate a hydrogen economy, including funding several regional production and consumption hubs,” S&P said.

Further, the bill would focus the federal program squarely on developing clean hydrogen, reflecting the imperative to produce only low- and no-carbon supplies, S&P said.

“Nearly all hydrogen produced in the U.S. today is through steam methane reformation of natural gas, a process that releases carbon dioxide,” according to S&P

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FuelCell stock recently traded at $7.45, up 3.2% at last check. It has plunged 74% over the past six months amid concern that hydrogen power was overhyped.

Plug stock recently traded at $29.15, up 3.4% at last check, and has tanked 57% in the last six months.

In June, FuelCell reported quarterly results that missed analyst estimates.

For the quarter ended April 30 the Danbury, Conn., company reported a loss of 6 cents a share, narrowed from the loss of 7 cents a share in the year-earlier quarter. Revenue of $14 million fell 26% from $18.9 million a year earlier.

Analysts surveyed by FactSet forecast a net loss of 5 cents a share on revenue of $18.9 million.