11/25/2023 0 Comments Should i buy plug stock![]() It is, however, an incremental positive for hydrogen companies operating in the US, as their tech and products can be showcased more easily, and as R&D investments will be partially financed by the government, which should have a positive impact on both sales (tech gets more publicity) and profitability (R&D expenses shrink, all else equal). Instead, hydrogen has been an absolute growth industry before details about this bill emerged, and it will remain a growth industry no matter whether the bill gets passed or not. The bill will, I believe, not be an absolute game-changer, and the global hydrogen industry is surely not dependent on this bill to an overly large degree. when it comes to research and development spending, for Plug Power and its peers. ![]() The government will at least partially finance these projects through grants, which could lead to lower operating expenses, e.g. Last but not least, the bill offers a clean hydrogen manufacturing initiative, aiming for contracts between the government and hydrogen companies for the establishment of demonstration projections and R&D projects for clean hydrogen usage and production. Possible technological advancements from this project will make clean hydrogen more competitive versus alternatives, and should thus benefit the hydrogen industry as a whole, as potential customers will be more inclined to use the technology if costs are easier to handle. The bill also includes a Department of Energy project seeking to reduce production costs for clean hydrogen. Supply chain investments stemming from the infrastructure bill should also make it easier for Plug Power and its peers to do business in a growing market. This will not necessarily impact any single company in a huge way, but support for the industry as a whole should come with benefits such as demonstration projects, which could lead to increased sales for hydrogen players such as Plug Power, as more companies and customers become aware of the technology's potential. First, there is an $8 billion program aimed at developing several regional clean hydrogen hubs. Plug Power and its peers should benefit from the infrastructure bill once/if it gets passed, due to several reasons. Will The Infrastructure Bill Impact Plug Power? Plug Power, along with other hydrogen companies, could benefit from the infrastructure bill, but I don't believe that investors should make their decision to buy or sell solely dependent on this item alone. The company is not profitable yet, and the future holds some uncertainties. Plug Power ( NASDAQ: PLUG) is a high-growth company targeting an attractive market with long-term tailwinds stemming from an increased global ESG focus. Olemedia/E+ via Getty Images Article Thesis ![]()
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