Shares of Plug Power (NASDAQ: PLUG), a hydrogen fuel cell company, skyrocketed this week as investors processed the news that Sen. Joe Manchin, the West Virginia Democrat, would support the Inflation Reduction Act of 2022, which includes investments in alternative energy, including hydrogen.
The stock has gained 19.8% over the past week.
Democrats needed Manchin’s support for the bill, which includes $369 billion for clean energy and other climate initiatives. The Senate could vote on the bill as early as next week, and then it would go to the House for approval, which could vote on the legislation in early August.
The bill is an important step for climate and alternative energy initiatives and could help curb U.S. carbon emissions by about 40% by 2030.
Plug Power investors were happy to see the bill moving forward because it includes a hydrogen tax credit that awards up to $3 per kilogram for low-carbon hydrogen.
CEO Andy Marsh has been very supportive of this type of credit and has said it could help the U.S. become a hydrogen leader. Marsh said in a Senate hearing last week that a “production tax credit of $3 per kilo and a sliding scale for blue hydrogen will make us the leader around the world for green hydrogen production.”
Investors are clearly happy about the latest news, but the company’s share price is still down 21% over the past 12 months.
There could be more volatility ahead for the company’s stock as investors process information about the U.S. economy slowing down. Just yesterday, the latest economic data showed gross domestic product declining for the second straight quarter.
All of this makes the company’s latest quarterly results even more important to keep a close eye on. Plug Power will report second-quarter results early next month.