Plug Power (PLUG) saw a significant rise in its stock price today, closing at $2.63, up 12.88% from the previous close of $2.33. The stock opened at $2.32 and reached an intraday high of $2.64, with a substantial trading volume of 85,684,966 shares, which is 150.21% of its average volume. The surge in Plug Power's stock is primarily attributed to the U.S. Department of the Treasury's release of final rules for the clean hydrogen production tax credit on January 3rd. These new rules provide expanded eligibility for hydrogen produced using nuclear power, methane, and renewable natural gas, which are expected to benefit hydrogen producers like Plug Power.
The Biden administration's decision to ease criteria for green hydrogen tax credits aims to boost domestic manufacturing and secure the U.S. as a leader in green hydrogen. The updated guidance has been positively received by the market, with RBC Capital highlighting the potential benefits for Plug Power and the broader hydrogen industry. The regulatory clarity is expected to drive deployment and create economic opportunities, contributing to the positive sentiment around Plug Power's stock.
Additionally, there was a notable increase in options trading for Plug Power, with 81,042 call options purchased, marking a 125% increase compared to the typical volume. This unusual options activity suggests heightened investor interest and optimism regarding the company's future prospects in the clean hydrogen sector.