Plug Power's stock is experiencing a surge today, driven by anticipation surrounding upcoming U.S. Treasury Department guidelines on tax credits for hydrogen production using nuclear energy. The new rules, expected later this week, could significantly impact Plug Power's profitability by allowing the company to offset costs when using nuclear power to produce hydrogen gas. Draft guidance suggests potential credits ranging from $0.60 to $3 per kilogram of hydrogen produced, which could make hydrogen production commercially viable for Plug Power. Investors are betting on a favorable outcome from the Treasury's decision, which is seen as crucial for the company's financial future.
The stock's upward movement is also fueled by optimism about Plug Power's ability to capitalize on these potential tax credits, which are part of the 2022 Inflation Reduction Act. The decision is expected to be announced by Friday, and investors are closely watching for confirmation that credits will be available and substantial enough to support profitability. This speculative buying reflects confidence in Plug Power's strategic positioning within the hydrogen sector, despite the inherent risks if the Treasury's decision does not meet expectations.
Plug Power, Inc. (PLUG) is currently trading at $2.42, marking a 13.38% increase from the previous close of $2.13. The stock opened at $2.19 and has reached a high of $2.42 today. With a volume of 34,830,942 shares, representing 61.76% of the average daily volume, the trading activity is robust for this time of day.