Why the shares of the hydrogen company Plug Power have increased in price

The new law increased the fuel cell manufacturer Plug Power Inc. (PLUG) stock prices. Hydrogen can become the primary beneficiary of large subsidies. At the auction on August 10, the PLUG stock was worth $24.67. This week, US lawmakers passed a law combating inflation, which will direct tens of billions of dollars to support renewable energy. The logic is simple: to reduce the share of fossil fuels with their volatile prices in the cost of products and services. 

Green energy at long-term fixed prices and this part of the costs is easy to predict for a decade ahead, for example, when it comes to refueling electric vehicles in the fleet of a logistics company. But hydrogen also has a unique role — hydrogen energy will receive the most significant subsidies among all other industrial sources of green energy. In its current form, the law assumes subsidizing up to half of the cost of producing environmentally friendly hydrogen will significantly increase the competitiveness of hydrogen, 

It considers its other advantages: high energy density and zero emissions during combustion or electrochemical reaction in fuel cells. Plug Power strives to become a leader in equipment and services for hydrogen production. The company has a multi-year plan to establish a network for producing and delivering hydrogen fuel in the United States. The company already has projects in four states and contracts for the supply of electrolyzers to third-party companies. Hydrogen is most profitable to produce near the places of consumption so that Plug Power electrolyzers can become a sought-after product. Against this background, the company can provide as one of the primary potential beneficiaries of loans and subsidies for developing hydrogen energy.