Fuel cell inventories were higher today, with Connect the power (NASDAQ: PLUG), Flowering energy (NYSE: BE), and Fuel cell energy (NASDAQ: FCEL) gaining 3.2%, 5.6% and 11.4%, respectively at 1 p.m. EDT.
With more and more automakers investing in hydrogen fuel cell technology, investors in fuel cell stocks are increasingly optimistic about the outlook.
A Reuters report this morning revealed how some of the world’s auto giants are looking beyond battery-electric vehicles and investing in hydrogen, which appears to be sparking interest in fuel cell stocks at hydrogen.
According to Reuters, Bmw (OTC: BMWYY)(OTC: BAMXF)(OTC: BAMXF) predicts a mainstream hydrogen model by 2030 and has built a prototype hydrogen car based on its X5 SUV. BMW vice chairman Jurgen Guldner also said the company intends to build a “test fleet” of nearly 100 cars by 2022.
Likewise, Volkswagen‘s (OTC: VWAGY) The Audi brand told Reuters it has already built a few prototypes and set up a team of more than 100 to research hydrogen fuel cell technology for the entire Volkswagen Group.
This particular Volkswagen update caught my attention because just a few months ago Volkswagen CEO Herbert Diess publicly rejected the idea of hydrogen cars when he tweeted that science does not support the use of hydrogen in cars.
It’s time for politicians to accept science: green hydrogen is needed for steel, chemicals, aero, … and shouldn’t end up in cars. Far too expensive, inefficient, slow, and difficult to deploy and transport. After all: no #hydrogen cars in sight.
– Herbert Diess (@Herbert_Diess) February 11, 2021
It looks like Volkswagen no longer wants to be left out of the hydrogen game, now that more gamers are relying on gas. Earlier this month, Hyundai Motor Group (OTC: HYMTF) announced ambitious plans for hydrogen, including electrifying all of its commercial vehicles with hydrogen fuel cells by 2028 and testing the use of the technology in drones and supercars.
These new updates from BMW and Volkswagen clearly prove that interest in hydrogen fuel cell technology extends far beyond just trucks to passenger cars, and this news is a testament to the viability of the technology to secure a future. greener. It is important to note that more research and investment in the industry is expected to reduce costs over time and make fuel cell technology even more attractive. This is what investors in major fuel cell stocks like Plug Power, Bloom Energy and FuelCell Energy want to see, even as these companies continue to grow. For example, Plug Power has just announced the construction of the largest hydrogen plant on the West Coast.
Despite all the attention fuel cells have received, these fuel cell stocks have been extremely volatile over the past year. Indeed, these growth stocks did not perform as expected until recently, when Plug Power and Bloom Energy posted record numbers in their respective second quarters and FuelCell Energy surprised the market with surprisingly strong growth. of its third quarter sales last week. If these companies can continue to grow that quickly, the news of additional investments in the hydrogen industry like what we heard today would be a perfect accelerator for these fuel cell stocks.
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