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
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.