#Should i buy plug power stock now Offline

The lack of guidance in the US is likely to have particularly weighted the S&P Kensho index, since 15 of its 17 companies are based in that country. The green hydrogen technology firm only registered $26m in revenue from its electrolyser business in Q3.Īmbition vs reality | Only a tiny proportion of the world's clean hydrogen projects have firm offtake deals: BNEF

“You may be in a situation where your project economics can really change with the interpretation, so you’re really in a holding pattern,” he explained.įor Plug, this means that in addition to its fuel supply woes, many of the electrolysers in the company’s order backlog are yet to be delivered - and therefore relatively little cash has been changing hands. But it was coming out soon three months ago,” West said, adding that “there’s a big part of the industry that’s continuing forward but not willing to take the final decision” until it is clear whether their project will be eligible for the top rate of the tax credit. Those details around how lifecycle emissions will be calculated - potentially including rules on additionality, and temporal and geographic correlation, like the Delegated Acts passed by the EU ( see panel below) - were meant to be published in August. While 2022 saw strong political promises to drive the uptake of clean hydrogen through support schemes, many of these subsidies are yet to come into effect, leading developers to hold off taking final investment decisions (FIDs).įor example, the Regional Hydrogen Hubs programme in the US - approved in the 2021 Bipartisan Infrastructure Act - is unlikely to deliver grants to its seven chosen applicants until next year.Īnd while lucrative production tax credits of up to $3/kg are offered as part of the US Inflation Reduction Act, companies cannot claim them until the Treasury Department has clarified the rules for qualification.ĮXCLUSIVE | Publication of critical US green hydrogen rules 'pushed back to end of year due to legal concerns': source West explained: “The outlook is still very positive but it’s taking a little longer for the market to develop.” has been primarily driven by two stocks, Nikola and Plug Power, contributing more than half of the index’s negative performance.”īut they added that the “performance of various clean energy related themes has been challenging this year”, while “on a longer scale, the index level has been relatively rangebound since January 2022”. However, a spokesperson for S&P told Hydrogen Insight: “The recent weakness. ‘Reality check’ | Hydrogen developers walk back large-scale ambitions this decade

The S&P Kensho Hydrogen Economy Index, calculated from the stock of 17 H 2 companies, has fallen from $234.91 on 1 August to $160.01 on 10 November - losing almost a third of its value - which, on the surface, suggests a wider problem across the hydrogen sector. So are Plug’s fortunes really just the bad luck of a single company? And because of this drop in supply - and a wider H 2 fuel shortage in California - the company had to buy hydrogen on the east coast and truck it to its customers in that state - adding significant costs to this fuel. This meant that Plug was exposed to both planned downtime for maintenance by its grey hydrogen suppliers and unplanned maintenance at its ten-tonnes-a-day green H 2 plant in Tennessee.

“Unfortunately, permits don’t always move as quickly as you thought they would,” West noted. However, this project has now been delayed to the end of the year. The company has planned to shift from its current model of buying grey hydrogen to sell on to its fuel cell equipment customers, to producing green H 2 in-house with a 15-tonnes-per-day production plant in Georgia originally set to start up last quarter.

#Should i buy plug power stock now Offline

California's hydrogen fuel shortage hits three-month mark, with filling stations still offline and no end in sight