Boost for Plug Power as Senate Extends Hydrogen Production Credit
Key Ideas
- Late provisions to the Senate's tax bill extend the green hydrogen production credit, benefiting Plug Power which saw a 10% stock climb.
- Under the extended credit, up to $3 per kilogram of clean hydrogen produced is provided, making hydrogen power cost competitive with fossil fuel tech.
- Plug Power had previously faced a significant drop in shares but has now seen a positive movement following the tax credit extension.
- The extension of the hydrogen production credit aligns with President Biden's focus on clean energy and supports the growth of the hydrogen fuel cell industry.
The Senate's tax bill saw provisions added late Friday that extended the green hydrogen production credit, bringing positive news for Plug Power, a hydrogen fuel cell company. Previously, the credit was set to end at the year's close, but the new version extends it to January 1, 2028, offering up to $3 per kilogram of clean hydrogen produced. This extension allows hydrogen power to compete on cost with fossil fuel technology, helping Plug Power bounce back from a significant stock decline. The move aligns with the Biden administration's focus on clean energy and supports the growth of the hydrogen fuel cell industry. The positive sentiment is reflected in the 10% climb in Plug Power's stock following the announcement.