Oil prices have become the driver of the growth of quotations of the hydrogen company Plug Power
Fuel cell manufacturer Plug Power Inc. (PLUG) rose 11.95% to $25.29. A significant increase occurred without substantial news about the Plug Power business. However, expectations of an increase in the cost of oil became the driver. The share of hydrogen in the global energy sector is growing slowly because fuel cells and hydrogen fuel production are expensive.
Nevertheless, the introduction continues because hydrogen energy has unique advantages: the absence of harmful emissions, the possibility of continuous power generation, and the creation of robust power plants that are suitable, among other things, for heavy machinery (marine transport, trucks, locomotives, etc.).
Hydrogen production from natural gas so carbon into the air simultaneously, but electrolysis plants and installations for extraction from local raw materials are becoming increasingly widespread. However, plug Power still does not profit and does not generate positive cash flow, which is the main factor of pressure on quotes. At the same time, the current situation may lead to a long period of increased oil and gas prices, making hydrogen energy more attractive.
Plug Power company continues to increase production capacity, counting on-demand growth. In particular, it is building hydrogen production plants that will produce up to 1,000 tons of fuel per day by 2028. This work will require significant investments, including through debt and new shares. Thus, investments in Plug Power are now of a long-term nature, and sharp growth is usually quickly replaced by a correction. Currently, hydrogen energy can receive an additional impetus for development.
