Hydrogen fuel cell stocks were seen in the green after Biden released The American Jobs Plan on March 31. The $2.25 trillion plan aims to jumpstart the US economy after the burdens posed by the COVID-19 pandemic. The American Jobs Plan proposed $15 billion investments in projects for climate R&D, including hydrogen and utility-scale energy storage.
Hydrogen fuel cell companies Fuel Cell Energy (NASDAQ:FCEL), Bloom Energy (NYSE:BE), and Plug Power (NASDAQ:PLUG) were all boosted. FCEL stock went up 9% to reach $15.55 on Thursday, riding on the back of this news. PLUG stock went higher by almost 2% and touched $37,75 before it retracted towards $35,26. BE stock has risen 4% and surpassed $28.
The $15 billion stimulus towards further hydrogen research and development is an indication that the vision for more widespread adoption of the hydrogen fuel cells technology might be materializing. The plan also unveils a suggestion for investment in 15 decarbonized hydrogen demonstration projects in distressed communities. That is in line with Biden’s intention of bringing 40% of the climate and clean infrastructure investments to disadvantaged communities.
President Biden has been working to promote the shift towards clean energy. According to the new plan, the green transition represents enormous opportunities for the development of new markets and new industries.
Hydrogen Fuel Cell Stocks Past Performance
Fuel cell stocks have been suffering last week on expectations of delays on clean energy support. Hydrogen is one of the most expensive renewable energy sectors to develop, so investors fear FCEL, BE, or PLUG stocks might see more dips in the short-term. That is due to the high costs and scalability challenges normally associated with the hydrogen fuel cell technology.
It is also worth noting the historical development of the leading fuel cell stocks. The three companies mentioned above, have all been generating losses over the past several years. At the same time, stock prices have been on the rise. They seem to be trading at astronomically high valuations, based on optimism about the potential of the hydrogen fuel cell technology.
Hydrogen-related clean energy investments have proven highly sensitive to infrastructure spending. The American Jobs Plan is demonstrating the Biden administration’s commitment towards green technology development. Hydrogen fuel cell stocks saw a spike riding the news, however, investors may need to be patient as billions of dollars of funding will be required to see this sector flourishing.