Fuel Cell Developments For the Week Ending 12/7/2024
This week brings exciting hydrogen fuel cell developments, with significant updates from industry leaders, stock movements, and breakthroughs in technology. From regulatory changes to new partnerships and product launches, the hydrogen sector continues to evolve rapidly. Stay informed on the latest advancements and what they mean for the future of clean energy and hydrogen mobility.
- U.S. Treasury Finalizes Tax Credit Rules for Clean Energy Projects
The U.S. Treasury and IRS unveiled their finalized rules for the Investment Tax Credit (ITC) under the Inflation Reduction Act. These rules clarify eligibility for hydrogen storage projects, allowing broader applications beyond energy generation. This is a monumental step for clean hydrogen, providing much-needed certainty for project developers. The updated ITC rules are expected to drive investment in hydrogen infrastructure, offshore wind, geothermal, and biogas projects, boosting the U.S.’s clean energy ambitions.
Read Full Details Here - Hyvia Faces Bankruptcy Amid Hydrogen Market Challenges
Hyvia, a Renault and Plug Power joint venture, revealed it is nearing bankruptcy due to market and financial difficulties. This setback underlines the challenges hydrogen mobility ventures face, particularly in developing scalable markets and infrastructure. The fate of Hyvia’s 110 employees and its hydrogen utility vehicle plans hangs in the balance as shareholders explore possible rescue options.
Read More - Ballard Power Secures Major Contract with CPKC for Hydrogen Locomotives
Ballard Power Systems (NASDAQ: $BLDP) signed a new Long-Term Supply Agreement with CPKC for 98 hydrogen fuel cell engines, marking a significant expansion of its freight rail market presence. This contract builds on earlier successes in integrating hydrogen into locomotive systems and reinforces hydrogen’s potential in decarbonizing heavy transportation.
Learn More - Hyundai XCIENT Hydrogen Trucks Deployed for Clean Logistics in Georgia
Hyundai Motor Group rolled out 21 XCIENT hydrogen-powered trucks for logistics operations at its Georgia EV manufacturing plant. This initiative underscores the company’s commitment to sustainable transportation and supports its broader hydrogen value chain under the HTWO brand.
Explore the Full Story - Snopes Debunks Tesla’s Hydrogen Car Rumor
Rumors of a Tesla “Model H” hydrogen-powered car were confirmed false by Snopes. Elon Musk remains a vocal critic of hydrogen technology for vehicles, and no credible evidence supports claims of Tesla entering the hydrogen space.
Read More
Stock Performance: Weekly Wrap-Up
Here’s how leading hydrogen and fuel cell stocks performed this week:
- Plug Power ($PLUG): Closed up 6.25% at $2.38, buoyed by the ITC news and optimism around hydrogen incentives.
- Bloom Energy ($BE): Despite a slight drop of 1.35%, closing at $27.08, Bloom Energy remains near its 52-week high, reflecting strong performance and investor confidence in the clean energy sector.
- FuelCell Energy ($FCEL): After a strong week last week, FuelCell Energy saw a pullback, closing at $10.47 (-11.8%). However, it continues to show long-term promise with significant growth potential in natural gas and hydrogen energy solutions.
- Ballard Power ($BLDP): Gained 8.05%, closing at $1.61 after announcing the CPKC deal, showcasing momentum in the hydrogen sector.
- Nikola ($NKLA): Slipped significantly, closing at $1.61 (-19.9%), signaling market skepticism despite the company’s hydrogen truck ventures.
Pro Tip for Investors:
While $PLUG and $BLDP have shown gains recently, reflecting investor confidence in companies benefiting from favorable U.S. policies, many hydrogen and fuel cell stocks are trading close to their yearly lows. For example, $NKLA, $FCEL, and $PLUG are all nearing their 52-week lows. $NKLA dropped by 19.9% this week, and $PLUG is trading 78% below its 52-week high.
On the other hand, $BE is performing well, hovering near its 52-week high. This reflects strong investor sentiment in the clean energy sector, with $BE positioning itself as a leader within this space.
Market Movements in December:
It’s important to recognize that stock movements in December may not always be directly tied to company performance or market conditions. Year-end tax-loss selling, a strategy where investors sell underperforming stocks to realize losses and offset capital gains taxes, can significantly affect stock prices. This is especially true for stocks that are closer to their 52-week lows. Investors should keep this in mind as the tax-loss selling season reaches its peak, which can create volatility in the stock market regardless of the underlying news or fundamentals.
Understanding Tax-Loss Selling:
Tax-loss selling is a strategy where investors sell assets that have lost value to offset gains from profitable investments, reducing taxable income. This can lead to stocks, especially those near their yearly lows, underperforming despite positive news. For example, Nikola’s recent negative performance might partly reflect this effect, as investors sell off shares to minimize tax liabilities before the year ends. Understanding tax-loss selling is crucial because it can distort stock prices, regardless of a company’s fundamentals.
For more on tax-loss harvesting and its impact on stock performance, visit NerdWallet’s Tax-Loss Harvesting Guide or BMO Wealth Insights.
Takeaways to Fuel Cell Developments
The finalized ITC rules provide a major boost to the fuel cell industry, ensuring continued government support for hydrogen and clean energy. Plug Power is particularly benefitting, with the updated tax credits strengthening its position in the hydrogen market, driving increased investor confidence.
Meanwhile, Bloom Energy is trading near its 52-week high, reflecting strong investor sentiment in the clean energy sector. FuelCell Energy, despite a slight pullback after a strong week, continues to show significant long-term potential with its promising hydrogen and natural gas solutions. Ballard Power, finally showing some much-needed momentum, saw a strong gain this week, highlighting its potential in the hydrogen sector, long overdue given its established market presence.
However, Nikola saw a notable drop in stock value, which may be partly driven by tax-loss selling as investors aim to offset gains before the year ends. It’s also possible that this decline could be tied to broader skepticism about the company’s hydrogen truck ventures.
Fuel Cell Developments: What’s Next for Hydrogen?
As we move into 2025, expect greater clarity on hydrogen’s role in clean energy policies and transportation. Watch for:
- Updates on the ITC’s impact on hydrogen storage projects.
- Developments in heavy-duty transportation hydrogen adoption.
- Market reactions to potential policy shifts and funding announcements.
Stay tuned for more updates.
Disclaimer: This is not investment advice. Always consult a financial professional before making decisions.