Key Points

  • Plug Power is a leading player in the hydrogen fuel cell market
  • The company's CEO, Andy Marsh, has been on a 14-year quest to make the company profitable
  • The Inflation Reduction Act includes tax credits for companies that produce green hydrogen, which is exactly what Plug Power plans to do
  • The global market for hydrogen fuel is expected to more than triple by 2050, providing a significant opportunity for Plug Power to increase its market share
  • While the company's quest for profitability may not be achieved in the short-term, the future looks bright for Plug Power and its investors.

Plug Power Inc continues to make headlines in the financial industry as the hydrogen fuel cell market leader.

The company's CEO, Andy Marsh, has been on a 14-year quest to make the company profitable, and recent developments suggest that this goal may finally be within reach.

Over the weekend, the CEO of Plug Power was in a quest for profitability. An Online Interview highlighted the government's efforts to increase American production of renewable energy, specifically through the Inflation Reduction Act. This Act includes tax credits for companies that produce green hydrogen, which is exactly what Plug Power plans to do. The Plug Power Inc Stock Movement reflects something different.

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The Next Hydrogen Fuel Cell

Green hydrogen is produced by separating hydrogen from water using electricity from solar and wind power. Currently, hydrogen fuel separated from natural gas costs about $1.50 per kilogram to produce. On the other hand, green hydrogen costs $5 per kilogram and up.

Plug Power plans to produce green hydrogen for $5 (or lower) and sell it for $6 a kilogram, with the goal of pocketing not just a $1-per-kilogram profit, but also $3 per kilogram in tax credits from the IRA.

The global Stationary Fuel Cell market is anticipated to rise at a considerable rate during the forecast period, between 2022 and 2028. The global Stationary Fuel Cell market size was valued at USD 2574.55 million in 2021 and is expected to expand at a CAGR of 9.84 percent during the forecast period, reaching USD 4520.35 million by 2027.

This is good news for Plug Power investors, as the company stands to benefit significantly from the growth of the hydrogen fuel market.

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Predictions show that the global market for hydrogen fuel will "more than triple by 2050" and that almost all of this increase will be in the production of green hydrogen. This presents a significant opportunity for Plug Power to increase its market share and ultimately turn a profit.

The Stock had a Mixed Performance

However, it's important to note that despite the positive news, most analysts polled by S&P Global Market Intelligence still don't see Plug Power earning a profit before 2025 at the earliest, or generating positive free cash flow before 2026. Additionally, at current prices, Plug Power stock costs more than 45 times the profit that it might earn (or might not earn) in 2025.

Plug Power Inc continues to make strides in the hydrogen fuel cell market and stands to benefit significantly from the growth of the hydrogen fuel market and the Inflation Reduction Act. While the company's quest for profitability may not be achieved in the short-term, the future looks bright for Plug Power and its investors.

It is important to note that the company need to prove its profitabilty on the long term before making any investment decisions.



About PLUG POWER INC


  • Ticker PLUG
  • Exchange NASDAQ
  • Sector Industrials
  • Industry Electrical Equipment & Parts
  • Shares Outstandng 579,276,992
  • Market Cap $1.65B
  • Description
  • Plug Power Inc. delivers end-to-end clean hydrogen and zero-emissions fuel cell solutions for supply chain and logistics applications, on-road electric vehicles, stationary power market, and others in North America and internationally. It engages in building an end-to-end green hydrogen ecosystem, including green hydrogen production, storage and...
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