Plug Power Inc.’s (PLUG) shares continued to rise thanks to its deal with Wal-Mart Stores Inc. (WMT). Per the deal, Plug Power will supply 1,738 GenDrive fuel cell units, which will be deployed at Wal-Mart’s six North America distribution centers over the next two years. Plug Power will also service these units for six years. Usage of fuel cell will help Wal-Mart to lower its carbon footprint.
Since the announcement of the deal on Feb 26, Plug Power’s shares have catapulted 133.8%. From the beginning of the year Plug Power has seen an astronomical 565.2% rise in its share price to close at $10.31 yesterday.
Shares of other fuel cell technology developers are also moving up, as these stocks continue to enjoy the support of the U.S. government and the industry heavy weights.
Other Fuel Cell Players
Apart from Plug Power, other operators in this space like FuelCell Energy Inc. (FCEL) and Ballard Power Systems Inc. (BLDP) registered respective gains of 178.7% and 352.6% so far this year. The surging prices of these stocks infuse optimism in this niche energy space.
Recently, FuelCell Energy received a $2.8 million award from the U.S. Department of Energy's (DoE) Advanced Manufacturing Office to continue with its research on tri-generation capabilities of a Direct FuelCell power plant for industrial applications.
Apart from signing domestic contracts, Ballard Power signed a contract with Solaris to supply two zero emission fuel cell power modules in Europe.
Focus on Fuel Cell Stocks
Harmful discharge of greenhouse gases from fossil fuel based power plants has prompted the government to put more emphasis on pollution free power generation. To adapt with the changing regulatory landscape, utilities are presently focusing on generating power from sources that are environmentally friendly.
Steady R&D efforts have led to innovative ways of producing power without adding to the carbon footprint and at the same time contributing to the grid. The emerging fuel cell technology is one such shining instance.
Per a DOE report, in the next 10 to 20 years, the fuel cell market could range from $14 billion to $31 billion per year for stationery power, $11 billion per year for portable power and $18 billion to $97 billion per year for transportation.
With ongoing research, the cost of generating power from fuel cells is expected to come down. Undoubtedly, this alternate electricity generation technique has started to come into prominence in the utility space and has caught the attention of the investor community.
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